Members 1DZReverendDavidLee Posted June 12, 2012 Members Share Posted June 12, 2012 I'd better get in there and stock up on some DS-1's then!DS-1 my ass. Did you grab a Luna from Robert yet??? Miss ya little Brother - stop in town and I'll buy lunch! Link to comment Share on other sites More sharing options...
Members mlabbee Posted June 12, 2012 Members Share Posted June 12, 2012 Is it too soon to make an Ed Roman joke? We have a medium sized local chain here that actually has a pretty decent selection of product. But for the most part, the m&p's I've been to in the last few years just don't stock enough of anything to make it worth the trip. There's just too much product out there (even from one manufacturer - how many models does Fender sell these days?) for anyone but the big guys to have enough in stock to be worth going to try things out. The m&p's either stock all the low end products or specialize in the really high end stuff. If you want to try a wide variety of brands and models, it's pretty much got to be GC these days. Link to comment Share on other sites More sharing options...
Members mmolteratx Posted June 12, 2012 Members Share Posted June 12, 2012 I agree with all of this about GC. I've never had a negative experience with any of the employees at any of the GCs I've been to going all the way back to the late 90s. I don't like it that they refuse to negotiate on used gear, but I have never encountered any jerks or been treated badly. They've been nothing but helpful every time I've been there and I've bought a lot of my used gear there as a result. I know this sounds shilly, but I don't work for them nor do I think I could because of their pay system. In a weird twist, the owner of the local music store where I grew up (loved that place as a kid/teen) now heads up the guitar department at one of the GCs here in Dallas and has been there for years and seems happy. Man, the Dallas area GCs are great. Really friendly guys that tend to be either knowledgeable or willing to get someone who is if they're not. The original Austin location is pretty sick too, though the newer ones are pretty small and understaffed. There are a ton of great small stores in Austin to make up for it though. Link to comment Share on other sites More sharing options...
Members janimarj Posted June 12, 2012 Members Share Posted June 12, 2012 This is nowhere near true. GC has opened about 20 stores in the last 2 years, and are making money, not losing it. The Fender and Ibanez selections in stores have actually grown tremendously.Been working for GC Raleigh for 4 years. We aren't hurting Well, GC is making money, but not enough to pay off old debts and interest without taking more loan. U.S. musical instrument retailer Guitar Center is facing a $134.7 million applicable high-yield discount obligation (AHYDO) payment in April 2013 and its Holdco notes are also becoming cash interest pay in 2013. -- We believe the company will have to borrow under its revolver to meet its financing and operating needs during 2013 and that cushion to its senior leverage covenant will likely narrow to about 10%.... Our ratings on Guitar Center reflect our assessment that the company's liquidity is "less than adequate" but sufficient to avoid a default within two years. http://www.reuters.com/article/2012/05/08/idUSWNA678920120508 Link to comment Share on other sites More sharing options...
Members tim gueguen Posted June 13, 2012 Members Share Posted June 13, 2012 guitar center is in such trouble in fact, that they just opened a new store in north portland a couple weeks ago. Blockbuster Video opened a new store here a month before they went bankrupt, and their financial problems had been obvious for a long time. Link to comment Share on other sites More sharing options...
Members IRG Posted June 13, 2012 Author Members Share Posted June 13, 2012 Well, GC is making money, but not enough to pay off old debts and interest without taking more loan.http://www.reuters.com/article/2012/05/08/idUSWNA678920120508 Yeah, this doesn't look good. Link to comment Share on other sites More sharing options...
Members Reaganomics! Posted June 13, 2012 Members Share Posted June 13, 2012 I don't really have anything to add except to ask is everyone that posted in this thread getting targeted ads by "The Economist" magazine everywhere? The internet is weird. Link to comment Share on other sites More sharing options...
Members plaidbeer Posted June 13, 2012 Members Share Posted June 13, 2012 I don't really have anything to add except to ask is everyone that posted in this thread getting targeted ads by "The Economist" magazine everywhere? The internet is weird. No. I get the "Language professors hate him!" ad as well as MacKeeper ads (twice on the same page when on The Guardian's site). Link to comment Share on other sites More sharing options...
Members plaidbeer Posted June 20, 2012 Members Share Posted June 20, 2012 The nearby Music & Arts closed last week. Link to comment Share on other sites More sharing options...
Members onyxrhino Posted June 20, 2012 Members Share Posted June 20, 2012 hmmm...why would Reaganomics be getting ads for "The Economist"? Link to comment Share on other sites More sharing options...
Members Sillypeoples Posted June 20, 2012 Members Share Posted June 20, 2012 Buy a company, run up the debt, kill the cash flow(raise prices), short the stock, go bankrupt. Move on to the next. Circuit City, Blockbuster, Hollywood Video, some airlines, Merrel Lynch, Lehman Bros, Bear Sterns, a few banks come to mind....Fender, Guitar Center, Best Buy are probably next. Link to comment Share on other sites More sharing options...
Members Will Chen Posted June 20, 2012 Members Share Posted June 20, 2012 Brick and mortar is over. So over. I hate it, too, but too bad, so sad.#1) Too many people on the payroll, any business' largest expense.#2) Too much real estate, which never goes down in price, except when it does, and then it's a "huge loss", no longer a "good investment".#3) Too much inventory on hand, getting more and more beat up every day.There's really no longer any upside for maintaining a brick and mortar presence, except to try to please the dinosaurs.The people profiting from all this will be the shipping companies. Buy, try, and return is the future. Look for even longer exchange policies, and automatic return labels included in your shipment. UPS and FedEx already offer these. Offshore the manufacturing then eliminate the retailer...hmm...don't think that would work for too long. Your argument is flawed in the sense that any internet company still has to pay for significant real estate expense to operate a large enough warehouse to meet customer demand and that the shift from paying employees in retail stores to paying warehouse workers plus shipping expenses might not be less expensive depending on the products sold and managing damaged goods in shipment/customer returns. GC may not be doing well, but losing them would be horrible in the short term. Then someone else will take their place and the cycle will start over again... Link to comment Share on other sites More sharing options...
Members colonel Posted March 19, 2013 Members Share Posted March 19, 2013 Yes GC is deeply in debt to the tune of 1.6 billion plus massive and I mean (MASSIVE) inventory debt. In 2011 they declared a loss of $111 million. 2012 I believe was much the same.They are basically bleeding money out of their collective a$$. In April of 2013 they have a payment of $137.6 million due to the bank and another 50 million due in October. Also they owe every vendor on the planet earth and are past due with many as far as I know. In October of last year the CEO left his job to pursue other interests. Hmm I wonder what that means. Get out while the going is good. Who knows. Not long after Bain took over the company in 2007/8 Fender hired the ex CEO of GC and proceeded to purge many of their independent dealers. As far as GC is concerned the business model no longer works. Frankly it doesn't work for many others such as Best Buy, Radio Shack and Borders etc. Think about the cost to keep 235 Brick and Mortar locations open 12 months a year. Thats 2,820 Lease, rent, phone and utility payments. Payroll, advertising, taxes, inventory and on and on. Not to mention the interest on the loan. From what I've read In 2011 they claimed a net profit of about 60 million on the $2.1 Billion gross everything combined (GC, Musicians Friend, Music 123, Music & Arts and Brasswiind Woodwind). Do the math. Thats not even enough to pay the interest on the money they borrowed. What's next. Ask the experts. My glass ball is broken. When MARS Guitars went down the vendors lost a ton of money which never was paid back. If GC goes under who knows. Right now as far as I can tell they are liquidating gear at or below cost just to stay afloat. It's very plausible that some of these Stupid Deals are on gear that they themselves still owe their vendors for. You know the old story rob Peter to pay Paul. Who knows. For those Romney lovers just read some history on how Bain used to operate under his command. I'm not a fan. That's my opinion. Take it as it is but read the Rolling Stone article and draw your own conclusions. So yes to what you've read it's all true. Link to comment Share on other sites More sharing options...
Members Faldoe Posted March 19, 2013 Members Share Posted March 19, 2013 hopefully I'll be there for the gear purges. Or maybe they'll dissolve the company in the public's good. Link to comment Share on other sites More sharing options...
Members colonel Posted March 19, 2013 Members Share Posted March 19, 2013 Romney is not as awesome as you make him out to be. GC is not long for the world. Fact not fiction. Romney has plenty of issues. Unfortunately even under another commander they will take the banks and vendors for a ton of money. The industry needs the independents more than you think. 100% of ALL of the service that occurs in the MI industry happens at an independent level. Take those repair shops away and you just have broken gear and places to buy new. The same logic applies to the car industry. Many of the good repair shops are the independents. We have run a repair shop for 40 years and we are crushed in repairs. Why you ask? Well..........thankfully we R 1 of those Mom and Pops who have thrived in an industry dominated by the Box Stores. ALL of the knowledge in the music industry is housed under the roofs of the independents. I guess the next time you're in a GC ask someone how to adjust a neck, do a fret file, install a pickup, how to setup a compressor, recone a speaker etc. But don't be surprised when they give you a dumb look. I thank God everyday they are open because I know that no matter what we will always have work. Will I shed a tear when they are no longer around. NOPE. Link to comment Share on other sites More sharing options...
Members colonel Posted March 20, 2013 Members Share Posted March 20, 2013 They owe Fender millions of dollars. A rep in the industry that I recently talked to said that he believes it to be in excess of $30 million dollars. No small potatoes for sure. Dumb it down however you like but the big component of that is because the ex CEO of GC became the CEO of Fender. Now they are between a rock and a hard place. Not to mention Fender is $246 million in debt with about $236 million due next year. Do the math not a good place to be. Production is way outpacing demand. One reason why so many stores are switching to used rather than sustain these huge franchises. Link to comment Share on other sites More sharing options...
Members colonel Posted March 20, 2013 Members Share Posted March 20, 2013 They are no good for the industry and they don't have customer service or product know how. If all you shop for is the lowest price then your missing why the independents exist. Let me know how many GC's have a full blown service department. Also ask a professional musician where he/she goes to maintain there instrument. I'll bet the answer will be not a GC but one of those no good mom and pop stores with high prices. Do the math what little you pay higher is returned ten fold in customer service. When your gear breaks down go to GC and have them give you a loaner. Don't be surprised when they give you a dirty look. Link to comment Share on other sites More sharing options...
Members colonel Posted March 20, 2013 Members Share Posted March 20, 2013 My feelings too. They are bad for the industry as a whole. I will lose no sleep when they go away. Link to comment Share on other sites More sharing options...
Members ChuckNorris1982 Posted March 20, 2013 Members Share Posted March 20, 2013 What's going on in here? Are you having a conversation with yourself? Link to comment Share on other sites More sharing options...
Members Lou Speed's Alt Posted March 20, 2013 Members Share Posted March 20, 2013 FAQ - How to Quote - and more... Link to comment Share on other sites More sharing options...
Members colonel Posted March 20, 2013 Members Share Posted March 20, 2013 They are $1.6 billion in debt. They owe there vendors in the multiple millions of dollars. They don't pay there vendors and owe the banks a truckload of cash. In 2011 they declared a loss of $111 million. 2012 was much the same. They don't even made enough money to pay the interest of the loans let alone the millions they owe there vendors. Do the math-they are in trouble. It was a BAD investment. Go to Ed Roman Guiatsr website or just google search the GC debt. You will be shocked believe me. It ALL true.In April of 2013 they have a payment of $137.6 million due the banks and another $50 million due in October. They are probably in debt with Fender alone for somewhere in the $30 million zone. Unless they have a huge crop of money trees the end is inevitable. Like all big companies they will cut there losses downsize, declare bankruptcy and thankfully go AWAY. Go riddence. They S.U.C.K. Link to comment Share on other sites More sharing options...
Members colonel Posted March 20, 2013 Members Share Posted March 20, 2013 the end is near Link to comment Share on other sites More sharing options...
Members Turd Furgison Posted March 20, 2013 Members Share Posted March 20, 2013 colonel is the best i have no idea why he dug up this old thread to rant, but he should keep going Link to comment Share on other sites More sharing options...
Members AimmarCair Posted March 20, 2013 Members Share Posted March 20, 2013 Link to comment Share on other sites More sharing options...
Members El Gallo Negro Posted March 20, 2013 Members Share Posted March 20, 2013 I'm really into what's happening here now. Link to comment Share on other sites More sharing options...
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