However, Guitar Center would be just fine if it didn't have all the debt Bain Capital loaded it with.
Guitar Center needs Chapter 7 bankruptcy, not Chapter 11. Discharge the debt, dump underperforming stores, let the major players bid on the remains, and restart.
Chapter 11 is just playing a shell game with the Bain debt instead of nuking it.
I’m surprised the article doesn’t even touch on the private equity angle. Guitar Center would appear to be another Toys-R-Us in the making, but this coverage doesn’t even hint at it.
However, Guitar Center would be just fine if it didn't have all the debt Bain Capital loaded it with.
Guitar Center needs Chapter 7 bankruptcy, not Chapter 11. Discharge the debt, dump underperforming stores, let the major players bid on the remains, and restart.
Chapter 11 is just playing a shell game with the Bain debt instead of nuking it.