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Guitar Center and its affiliates were sold for 2.1B to Bain, a private investment group.
 

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So, is there going to be a clearance in the works or are they going to remain in business?

Jimmy:smile:
 

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June 27 (Reuters) - Guitar Center Inc. (GTRC.O: Quote, Profile, Research) said it agreed to be acquired by affiliates of private investment firm Bain Capital Partners LLC for about $2.1 billion, including assumed debt. Under the terms, Guitar Center stockholders will receive $63 in cash for each share held, the company said in a statement.

The offer represents a 26 percent premium over Guitar Center's closing price on Tuesday.

(Reporting by Debojyoti Ghosh in Bangalore)

((Editing by Anil D'Silva; Reuters Messaging:[email protected]; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800)) Keywords: GUITERCENTRE TAKEOVER/BAIN
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This will change the landscape radically.
 

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Wow, Under the agreement, the buyers will also assume about $200 million in debt.
You think that's a lot? How much do you think is the cost of their inventory and carrying cost of it? They're a mere retailer, 10% of their worth in inventory turnover debt is not much at all.

Interesting to see somebody else is interested in investing in music retail. New owners I'm sure should have plans to continue growing business. Otherwise they'd have not paid a 25% premium.

I'd actually heard from MF.com people themselves that they'd acquired Music 1_2_3 .com recently. I have not been able to find anything online to that respect to confirm this though.

Gus.
 

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Discussion Starter · #11 ·

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what were they like in the 80's?
A place where you actually go and get decent and knowledgeable assisstance from the sales people and a great selection of guitars and amps!!!
you could drool and feel like a kid in a candy store because of all the cool stuff they used to have! I haven't felt like that for a long long time and I have been to dozens of music stores!!! (I always wanted to go to the Eastcoast music mall though, I used to have a poster! probably that is one of the last cool guitar stores still standing, if it still "exists" that is)
 

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It is all too easy on the internet these days to bother going to a music shop. There is no need for shops to have so much stock around - unless they have a storehouse setup of sorts. I remember one of the first things that I was told about buying a guitar, 'always go in and play the guitar for yourself, see what the guitar sounds and feels like'. I imagine most of us here have heard that advice!

All this cost cutting, saving overheads and ease of purchase is ensuring we end up with a lot of guitars but no real connection with a guitar unless we're lucky enough to score when we open our postage parcels for Music XYZ or cheapguitarsonline.com etc. OK off the soap box........

- Wolfram
 

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It is all too easy on the internet these days to bother going to a music shop. There is no need for shops to have so much stock around - unless they have a storehouse setup of sorts. I remember one of the first things that I was told about buying a guitar, 'always go in and play the guitar for yourself, see what the guitar sounds and feels like'. I imagine most of us here have heard that advice!

All this cost cutting, saving overheads and ease of purchase is ensuring we end up with a lot of guitars but no real connection with a guitar unless we're lucky enough to score when we open our postage parcels for Music XYZ or cheapguitarsonline.com etc. OK off the soap box........

- Wolfram
I still like to play a guitar before I buy it...I've played RG550's that are duds and some that are great...
 

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Maybe the new owners will close it down so all the amazing 'local' shops around the country won't have competition from a piece of **** corporation that sells crappy instruments that are continuously smashed around by 15-year old bastard teenagers.

I freaking hate Guitar Center. Last week, I called up and asked the guy over the phone if they'd buy my Hughes & Kettner 4x12. He said YES, but they couldn't quote a price. Fair enough. So, I dragged the thing into my car and drove 25 minutes to GC and told the guy at the desk I had the cab and would like to talk to someone about it. He asked what brand it was and I told him 'Hughes & Kettner,' and he said, "Oh, I can already tell you, we can't take that."

I got quite pissed and pretty much bitched at him about how the guy TOLD ME TO BRING IT IN and how I DRAGGED IT IN THERE and he was cool enough to help me drag it out of my car and into the store to test it out. He plugged it in, tested it out, it worked perfectly and he went to look it up. He came back with a quote, which I was fine with, then he went away again to get a check or however they pay you when they buy used stuff.

Ten minutes later, he came back and said, "This is so stupid...." and proceeded to tell me about how they had a 'meeting' recently in which the store manager told all the associates that they could only buy used equipment from 'certain brands' and, of course, "Hughes & Kettner wasn't on the list."

He then told me I could trade it in towards anything IN the store for the price he quoted. So, I traded it in for some recording software. In the end, I did get something out of it, but the fact that they were so unorganized and no one knew anything was quite frustrating.

That place sucks.
 

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Wow just think if they close down, the small mom and pop shops will raise their prices. Wont that be fun?
 

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Well, they were bought by an investment firm, so I would guess the top two goals of the new owners will be "streamline organizational structure" and "maximize profits."

Which means layoffs, layoffs, layoffs. Oh, and offering top notch customer service and having quality products in a large national chain owned by an investment firm will not happen. They will work to replace much of the seasoned sales force with part-time help, implement some sort of customer service grading system that doesn't really grade actual service, but gives store managers something to base their bonus on. There will be a huge boost in high profit-margin items (ie - cheap crap) and well... I don't think much will change from the customer perspective.
 
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