June 30, 2022
Guitar Center And Its Billion Dollar Debt

It should come as no surprise that Guitar Center has furloughed more than 9,000 of its employees due to the coronavirus outbreak. The stores can’t stay open while we’re all isolating, and although musicians and artists consider music and music-making tools to be an essential part of their lives, the rest of the world doesn’t feel that way.

The good news is that GC is doing the right thing by arranging for pay extensions and benefits until the end of April. “It’s our fervent hope that we can bring these associates back to work once this crisis has passed,” stated CEO Ron Japinga in a statement. Japinga has opted to forgo his pay, and management from vice-president up will take pay cuts during the crisis.

GC also sent a letter to its many vendors regarding “extending terms for payment of all goods and services” that’s sure to send shivers down the backs of MI execs around the world. The whiplash effect of the most prominent vendor for many companies slowing payments will undoubtedly cause some to go out of business.

You can’t blame GC for this as it’s doing what it can to survive, and the industry needs it’s the largest retailer to remain alive if it’s going to recover once corona is over.

Fingers crossed GC comes back around!

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