Guitar Center Spokesperson Fires Back On Possible Bankruptcy
Author's Note: Full disclosure, I wasn't making claims on my own with this story but rather sharing what I had learned from an article on finance101.com which provided information on many businesses that they speculated might be in a vulnerable position that may result in bankruptcy.
Shortly after I posted the story wondering if Kalamazoo Guitar Center might be part of the next bankruptcy, I received an email from Grace Gill Qayoumi who supports Guitar Center's communications team. She wanted to set the record straight and since I'm rooting for Guitar Center I'm happy to oblige.
My name is Grace and I support Guitar Center’s communications team. Wanted to reach out regarding your blog from today “Is Kalamazoo Guitar Center Part of The Next Bankruptcy?”
As there are details included that aren’t factual, I wanted to send along updated information and request corrections.
For instance, the piece states “Guitar Center is on the brink of bankruptcy with less than a year to refinance a debt of $900 million and there are little or no positive signs on the horizon.”
Correction: Guitar Center did a standard refinancing that among other things, extended the maturity date of its debt. Additionally, both Moody’s & S&P have raised Guitar Center’s credit ratings following its debt refinancing. In its report, S&P stated “The company began seeing benefits from some of its strategic initiatives.”
Also, your piece says Guitar Center is a ‘struggling retailer”.
CORRECTION: To the contrary, Guitar Center is growing its footprint and has an active retail experience for its customers that wish to purchase online. In 2019, the company will increase its footprint across the country with 7 new store openings and 1 remodeled store, including new brand presence in Alaska and Hawaii.
Let me know if you can make the above corrections and if you need anything additional.