November 23, 2020: Pandemic has forced people to buy things online while the in-store traffic has reduced drastically in the last eight months. Guitar Center Inc, the largest retailer of musical instruments across the United States, has filed chapter 11 bankruptcy on Saturday.

Guitar Center Inc has more than 300 stores across the United States. As the music lovers move to online purchase of music instruments in the pandemic, the sale and revenue of the company have dropped. The retailer has haggled to have an aggregate of $375 million in indebted person under lock and key-financing from its current loan specialists and plans to bring $335 million up in new senior secured notes.

Guitar Center Inc., in the court filing, said it has between $1B to $10B of assets and liabilities.

The company that started in 1959 selling home organs in Hollywood will continue the business operations without interruption across the country. Milbank LLP served as legal counsel, BRG served as restructuring advisor and Houlihan Lokey as financial advisor to the company.

Earlier this month, the company reached a restructuring agreement with the stakeholders that included the debt reduction by $800 million and investment of up to $165 million to recapitalize the company.