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post #1 of 15 (permalink) Old 06-04-2007, 12:09 PM Thread Starter
 
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GC getting sold?

Someone mentioned to me that Guitar Center might be going up for sale. Anyone else heard this?

They said it would sell (and the MF online stores) between 1.5 and 2 billion dollars. (must be read in a Dr.Evil voice LOL)
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post #2 of 15 (permalink) Old 06-04-2007, 12:18 PM
 
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Re: GC getting sold?

Am I wrong in thinking that # is too high for that company?

Does GC get their inventory on consignment or do they buy it outright?
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post #3 of 15 (permalink) Old 06-04-2007, 12:23 PM Thread Starter
 
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Re: GC getting sold?

I don't know. I thought they bought their stuff outright or I'd at least hope so considering the condition alot of the stuff is in once it sits on the racks for a little while .

Nothing like picking up a NEW $3000 guitar with chips and dings.

The price is probably the changing of leases, inventory (GC and MF) and everything else they have in assets ($1.5 billion) PLUS enough cash to pay off investors ($.5 billion), which are why I'm hearing they are going to have to sell - to pay off the investors before they lose their a$$ like MARS did.
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post #4 of 15 (permalink) Old 06-04-2007, 12:52 PM
 
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Re: GC getting sold?


Here's a recent article. It appears to be speculation at the moment as GC hasn't made a comment on it yet.

http://www.latimes.com/business/la-f...lines-business

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post #5 of 15 (permalink) Old 06-04-2007, 01:49 PM
 
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Re: GC getting sold?

They must be using consignment, because the article said they have Zero Debt.
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post #6 of 15 (permalink) Old 06-04-2007, 01:51 PM
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Re: GC getting sold?

Bullsh!t, they owe Ibanez $3 Million right now.
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post #7 of 15 (permalink) Old 06-04-2007, 02:08 PM
 
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Re: GC getting sold?

I wonder if Ash is eyeballing them at least partially. GC's business model was always the polar opposite to Ash, but definitely enviable depending on how you look at it. Ash would have to liquidate, or at the very least use as collateral, several of thier owned product lines to float that big of a $$ nut though.
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post #8 of 15 (permalink) Old 06-04-2007, 03:28 PM
 
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Re: GC getting sold?

Hey Rich, so do you think they use consigned inventory or purchase outright and sell?

I know in my business Consignment is a great feature.
We can have several millions of dollars worth of inventory, when we sell material we issue a check to the Mill. It saves us from having to put up considerable amounts of cash.

If they use consigned stock then that would explain why MF has such a large scratch and dent department. They may move GC's damaged goods thru their website.
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post #9 of 15 (permalink) Old 06-04-2007, 04:01 PM
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Re: GC getting sold?

I'm sure they do whatever costs them the least money. If it's "floor plan" then they wouldn't get as deep a discount as if they pay for bulk quantity up front. I'm sure not all manufacturers have the same plans available, if they have them at all.
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post #10 of 15 (permalink) Old 06-04-2007, 07:20 PM Thread Starter
 
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Re: GC getting sold?

Thanks for the article link Courtney I want to go read it when I get a little more time.

Considering they are THE largest retailer and possibly the largest online dealer, this will be interesting to see everything unfold. I heard that some of the large chains like Wal-Mart are even interested. Scary. Imagine buying a Gibson or Jem at Wal-Mart
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post #11 of 15 (permalink) Old 06-04-2007, 07:50 PM
 
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Re: GC getting sold?

Quote:
Originally Posted by screamndemon69 View Post
I heard that some of the large chains like Wal-Mart are even interested. Scary. Imagine buying a Gibson or Jem at Wal-Mart
That is interesting, considering I am a shareholder with Wal-Mart.
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post #12 of 15 (permalink) Old 06-04-2007, 08:59 PM
 
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Re: GC getting sold?

Quote:
Originally Posted by screamndemon69 View Post
Thanks for the article link Courtney I want to go read it when I get a little more time.

Considering they are THE largest retailer and possibly the largest online dealer, this will be interesting to see everything unfold. I heard that some of the large chains like Wal-Mart are even interested. Scary. Imagine buying a Gibson or Jem at Wal-Mart

I can't see that happening considering the kind of people that work at WalMart. If they want to sell anything they'd have to get knowledgeable people. Not just a coupld of retirees looking for some extra coin.

However, BestBuy sells Fender. I believe they call it the Starcaster.
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post #13 of 15 (permalink) Old 06-04-2007, 10:31 PM
 
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Re: GC getting sold?

Quote:
Originally Posted by Rich View Post
Bullsh!t, they owe Ibanez $3 Million right now.
Good Grief! And that's just debt to Ibanez!

I guess their GC credit card for kids is not doing the job for them? Although their stocks are not doing too bad.
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post #14 of 15 (permalink) Old 06-04-2007, 10:41 PM
 
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Re: GC getting sold?

Quote:
Originally Posted by courtney2018 View Post

I can't see that happening considering the kind of people that work at WalMart. If they want to sell anything they'd have to get knowledgeable people. Not just a coupld of retirees looking for some extra coin.

However, BestBuy sells Fender. I believe they call it the Starcaster.
Hmmm, take out the word retiree, and you could be describing almost anyone I've ever dealt with in a music chain .......
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post #15 of 15 (permalink) Old 06-05-2007, 12:41 AM Thread Starter
 
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Re: GC getting sold?

I sure wish I knew ahead of time so I could have picked up some of their stock.
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