Guitar Center: It's Bankruptcy Time

The Guitar Center filed for Chapter 11 bankruptcy Saturday as yet another US retailer revealed its pandemic financial woes, Reuters reports. In a bankruptcy filing, the 61-year-old company said it plans to stay afloat with up to $165 million in fresh equity investments and a debt reduction of nearly $800 million. "This is an important and positive step in our process to significantly reduce our debt and ... support long-term growth," said CEO Ron Japinga, per CNN. America's biggest instrument seller has 269 locations, but foot traffic was down in malls even before the lockdowns. And stores that rely on discretionary purchases struggled particularly amid the pandemic. The Guitar Center turned to virtual music lessons in an attempt to turn a profit. (More bankruptcy stories.)