- Real Estate
- Food & Drink
Nov. 18, 2020
Guitar Center Inc. plans to file for bankruptcy protection and has reached an agreement with investors and lenders to reduce its debt and reinvest in the business.
The national retailer, which sells and rents new and used musical instruments, and offers repair services and lessons, said stores remain open and all operations are continuing normally.
“This agreement will allow us to significantly reduce our debt and reinvest in our business in order to better serve our customers and deliver on our mission of putting more music in the world,” CEO Ron Japinga said in a news release.
Guitar Center has nearly 300 stores, including one in Sioux Falls on 41st Street near The Empire Mall.
While Guitar Center did not say if it would close any stores, it has hired A&G Real Estate Partners to evaluate “its real estate portfolio and other agreements to focus on investments that position the company to return to its growth trajectory prior to COVID-19.”
Other retailers with Sioux Falls locations that have filed for bankruptcy this year include J.C. Penney; Pier 1 Imports; Tuesday Morning; Hertz; the parent companies of Gordmans, Chuck E. Cheese and Men’s Wearhouse; Pizza Hut franchisee NPC International; and Ascena Retail Group, which includes Ann Taylor, Loft, Lane Bryant, Justice, Catherines and other brands.
The city lost Pier 1, Gordmans and Catherines stores and its only dine-in Pizza Hut. Justice will close after the holidays.
Guitar Center will join a growing list of national retailers that have filed for bankruptcy in the wake of the pandemic.