Guitar Center, which operates a store in Gilroy, announced Nov. 21 that it has filed for bankruptcy, but it will stay open as it pays down its debt.
As part of its “financial restructuring plan” to reduce its debt by nearly $800 million, the Westlake Village-based company filed for Chapter 11 bankruptcy.
Guitar Center will provide “uninterrupted service” at its stores, websites, call centers and social media pages, the press release stated.
“This is an important and positive step in our process to significantly reduce our debt and enhance our ability to reinvest in our business to support long-term growth,” Ron Japinga, CEO of Guitar Center, stated in a press release. “Throughout this process, we will continue to serve our customers and deliver on our mission of putting more music in the world. Given the strong level of support from our lenders and creditors, we expect to complete the process before the end of this year.”
Guitar Center has nearly 300 stores across the country, including at 6910 Automall Parkway in Gilroy.
While no store closures are expected from the bankruptcy filing, the press release stated that Guitar Center has contracted a consultant to “explore opportunities to optimize its real estate portfolio and other agreements to focus on investments that best position the company to return to its growth trajectory prior to Covid-19.”