The largest retailer of music instruments and equipment in the US, Guitar Center, filed for Chapter 11 bankruptcy on Sunday morning, as customers moved their shopping online during the COVID-19 pandemic.
The largest US retailer of music instruments and equipment Guitar Center filed for Chapter 11 bankruptcy on Sunday morning, as customers moved their shopping online during the COVID-19 pandemic.
In a statement, the company said it has negotiated to have a total of $357 million in debtor-in-possession financing from its existing lenders and intends to raise $335 million in new senior secured notes.
Earlier this month the retailer reached a restructuring agreement with key stakeholders that includes debt reduction by almost $800 million and new equity investments of up to $165 million recapitalize the company.
Guitar Center said in a court filing said it has between $1 billion and $10 billion of both assets and liabilities.
The company, which owns nearly 300 stores across the United States, said business operations will continue without any interruption.
Guitar Center filed for Chapter 11 bankruptcy in the United States Bankruptcy Court of the Eastern District of Virginia.
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