Guitar Middle Inc, the most important U.S. retailer of music devices and gear, filed for Chapter 11 bankruptcy on Saturday, as music lovers moved their buying on-line throughout the coronavirus pandemic.
The retailer has negotiated to have a complete of $375 million in debtor-in-possession financing from its current lenders and intends to boost $335 million in new senior secured notes, the corporate mentioned in an announcement.
Earlier this month the corporate reached a restructuring settlement with key stakeholders that features debt discount by practically $800 million and new fairness investments of as much as $165 million to recapitalize the corporate.
The corporate in a courtroom submitting mentioned it has between $1 billion and $10 billion of each belongings and liabilities.
Guitar Middle, which owns practically 300 shops throughout the nation, mentioned enterprise operations will proceed with none interruption.
Milbank LLP served as authorized counsel, BRG served as restructuring advisor, and Houlihan Lokey was monetary advisor to the corporate.
Guitar Middle started in 1959 as a retailer promoting house organs in Hollywood.
The corporate filed for Chapter 11 chapter in the USA Chapter Courtroom of the Jap District of Virginia.
(Reporting by Radhika Anilkumar in Bengaluru; Enhancing by Lincoln Feast.)