Just a month after filing to reorganize under Chapter 11, Guitar Center Inc. has emerged after ridding its balance sheet of about $800 million in debt.
The Westlake Village musical equipment retailer has entered agreements to receive up to $165 million in new equity financing from stakeholders Ares Management Corp. in Los Angeles, hedge fund Brigade Capital Management and private equity firm Carlyle Group. The three firms now own 100 percent of the common stock in Guitar Center.
The company also raised $375 million by entering a new secured asset-based revolving financing facility funded by Wells Fargo and JPMorgan, and another $350 million – up from the expected $335 million – by selling new senior secured notes. That adds up to about $890 million in operating capital.
Holidays could make or break struggling stores
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The holidays could make or break struggling stores - News - The Rolla Daily News - Rolla, MO
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The holidays could make or break struggling stores
by Anne D Innocenzio, The Associated Press
Posted Dec 21, 2020 2:57 pm EDT
Last Updated Dec 21, 2020 at 2:58 pm EDT
NEW YORK Clothing stores and specialty retailers are offering big discounts and heavily promoting curbside pickup in hopes of rescuing a lacklustre holiday shopping season in which surging coronavirus cases have kept many shoppers at home.
For some, it could be their last chance at survival. And even a last-minute sales boost could be too late to save them.
The holiday season, which accounts for about 20% of the retail industry’s annual sales, has always been make-or-break for struggling stores. But it’s even more important this year as they look to make up for sales lost since the pandemic forced them to temporarily close locations.