Money Makers Mentor

Guitar Center Restructures Debt in Deal

Guitar Center restructures its debt in a deal with stockholders. This will reduce the company’s debt by nearly $800 million. The company signed a Restructuring Support Agreement (RSA) with various groups, including Ares Management LP and Brigade Capital Management. In order to recapitalize the company, this agreement includes new investments of up to $165 million. Following their filing for bankruptcy, the company wants to file petitions to reorganize and execute their financial plan. The company said that their nearly 300 stores will run without any interruptions. The company only owns brands such as Music & Art, which has 200 stores nationwide.

In 2017, the company wanted to explore ways to restructure $1.3 billion in debt. This debt is in large part due to an increase in online…

Leave A Reply

Your email address will not be published.