Things are just going from bad to worse for Guitar Center. As reported earlier this month, the music equipment super-store made plans to axe a bunch of corporate folk. That number went from 40 upwards to 180 people, and the hits just keep coming.
In a report from Gear Gods:
“Guitar Center’s secured bonds have been tanking since last July, and are taking a pretty consistent hit each day, according to data from the Financial Industry Regulation Authority. Just yesterday investors pulled $11 million out of the company, the kind of hit that is highly abnormal in this sort of bond market. It’s too early to call this a “run” on GC’s bonds, but it sure looks like a heck of a lot of people are starting to jump ship. And of course, once word starts to go around that the company’s not looking so hot, and that it’s a mess at the highest rungs of power, and then one investor pulls out… well, then another one pulls out, and then another, and another, and another, and another.”
We’re not financial experts here, but “investors pulled $11 million out of the company” doesn’t sound all that great for Guitar Center’s future. Read more of the report over at Gear Gods.