A major music retailer with a presence here in the Tri-State is disputing industry reports that it faces serious financial trouble.
Despite reports that Guitar Center is in danger of becoming another casualty of plummeting guitar sales (according to the Washington Post), the company says its business is growing – including $80 million in investments such as expansions and remodels.
The S&P initially downgraded Guitar Center’s credit rating to CCC-.
While insiders say that’s a sign of imminent bankruptcy, both S&P and Moody’s recently upgraded the company’s credit rating to CCC+.
Guitar Center has more than $1 billion dollars in outstanding loans, according to Fortune Magazine.
Said to be hurting retailers is a worsening financial crisis at Gibson Guitars, one of the world’s largest and most storied guitar makers.
Gibson recently declared Chapter 11 bankruptcy.
Experts say much of the blame for the reported declining guitar sales are being placed on younger artists making electronically-driven music.
Guitar Center, however, says industry guitar sales are the highest they’ve been since 2008.
The company says it has no plans to close.