Guitar Center files for chapter 11 bankruptcy

Posted December 2020

By Taj O'Malley

Staff Editor

Unable to recover from the pandemic-caused shutdown of its stores nationwide, America’s largest musical instrument retailer Guitar Center has filed for chapter 11 bankruptcy.

The place for musicians, professional and amateur alike, will still be open amidst its bankruptcy filing. The company, founded in 1959 at its first Hollywood location, will be financially supported by equity investor, Brigade Capital Management, and will also have a fund managed by The Carlyle Group. The support from these groups gives Guitar Center $165 million in new investment funds, and both companies plan to reduce Guitar Center’s debt by $800 million.

"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," Guitar Center CEO Ron Japinga stated to CNN.

Guitar Center’s financial recovery will be well-wished for by local music-lovers, who can go to any one of Guitar Center’s three Portland Metro-Area locations, which are based near Tigard, Clackamas, and the Portland airport, respectively.

As mentioned, Guitar Center opened its doors in Hollywood in 1959, and it was not called “Guitar Center” but rather, “The Organ Center.”

The Organ Center was exactly what customers presumed, a store with an illustrious organ collection, for both church and home use.

Company founder Wayne Mitchell was a man who stayed on top of trends. As soon as organs went (and stayed) out of style, Mitchell changed the niche of his music store to reflect the guitar amplifier and vox guitar’s rising popularity, a popularity caused by their association with The Beatles.

When Eric Clapton and other Marshall amplifier users rose to popularity in the late 60s, Mitchell once again changed his company’s name, this time to Guitar Center.

Guitar Center’s full history can be found on the company’s website.