Guitar Center, chain of the biggest music gear retailers in the USA is struggling with some serious problem. Due to S&P Rating Agency they are dealing with over 1 milion dollar in debt! Their position on the market has lowered and they are looking for a way to make it up somehow.
Spokesman from Guitar Center are blaming musical tastes of people for this.
“Most of what’s really selling today is rap and hip hop,” said George Gruhn, owner of the Gruhn Guitars shop in Nashville. “That’s outpacing other forms of music and they don’t use a lot of recognizable musical instruments.”
Guitar heroes like Eric Clapton or Paul McCartney are old, and they are touring not so often as they used to. Those artists have left indelible imprints on the music landscape, all the way from Clapton’s burning solo on “Crossroads” to George Harrison’s signature guitar part on “Daytripper.”
The bigger problem, according to Concotelli ( Mugzey music shop owner), is that most aspiring players don’t want to put in the time to become proficient on the instrument.“If they do want to learn they’ll just go to YouTube, but they’re not getting the proper instruction,” he said. “With kids these days, it’s all about instant gratification. No one wants to take six months or a year to learn. They don’t want to do the work.”
A report released last year by the Washington Post revealed electric guitar sales have plummeted over the past decade from about 1.5 million sold annually to just over 1 million. The two biggest companies, Gibson and Fender, are in debt, and a third, PRS Guitars, had to cut staff and expand production of cheaper guitars, the report said.
Guitar Center has issued $635 million in senior secured notes that will be due in 2021. Those notes and some additional cash will be used to refinance the company’s existing $615 million in secured notes which carry a lower interest rate and were set to mature next month, according to S&P.
We are showing you these scraps from Daily News’ article to raise the awareness of the bad condition of music market and music instruments. As you know, Guitar Center has organised big drum festival called “Guitar Center Drum Off”. It was a great event for drummers. Many drumming stars were playing there, and it was also a competition for young and upcoming artists who could show their talent there. Now everything is in danger. We should think about making a change!
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