The Briefing Room
General Category => Economy/Business => Topic started by: PeteS in CA on November 22, 2020, 10:25:26 pm
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US retailer Guitar Center files for bankruptcy
https://www.foxbusiness.com/markets/us-retailer-guitar-center-files-for-bankruptcy (https://www.foxbusiness.com/markets/us-retailer-guitar-center-files-for-bankruptcy)
Guitar Center Inc, the largest U.S. retailer of music instruments and equipment, filed for Chapter 11 bankruptcy on Saturday, as music lovers moved their shopping online during the coronavirus pandemic.
The retailer has negotiated to have a total of $375 million in debtor-in-possession financing from its existing lenders and intends to raise $335 million in new senior secured notes, the company said in a statement.
Earlier this month the company reached a restructuring agreement with key stakeholders that includes debt reduction by nearly $800 million and new equity investments of up to $165 million to recapitalize the company.
This looks like an "ordinary" re-org rather than like trying to resurrect JC Penney.