California-based Guitar Center plans to file for Chapter 11 bankruptcy, according to the company.
The plan was revealed as part of a press release announcing a Restructuring Support Agreement with creditors that includes a new $165 million equity investment.
The company operates about 300 stores across the country, including seven in the Washington, D.C. area.
A Guitar Center opened in April 2017 as a principal anchor in Ellsworth Place in Silver Spring.
The company reports that it will continue to “provide uninterrupted service to its customers through its existing channels, including its stores, websites, call centers and social media pages and will continue to receive goods and ship customer orders as usual. All merchandise credits, prepaid lessons, rentals, gift cards, deposits, orders, financing and warranties will be honored.”
No store closings are planned at this time, though the company has engaged a firm to “optimize its retail portfolio.”
The company anticipates its restructuring plan will be completed by the end of the year.
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