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đź”´ PRIVATE EQUITY OWNED
Guitar Center
musical instruments · Westlake Village, CA
PE Firm
Ares Management
Year Acquired
2021
“Bain loaded it with $1.6 billion in debt. Ares inherited the wreckage.”
The PE Playbook
- •Bain Capital's 2007 LBO saddled Guitar Center with $1.6B in debt — a $650M term loan, $750M in notes, and a $375M credit facility
- •Filed Chapter 11 in November 2020, eliminating ~$800M in debt; cycled through three CEOs under PE ownership
- •Corporate layoffs hit ~180 employees in internal waves, gutting institutional knowledge and customer service quality
- •Spent $400M+ annually just servicing debt instead of investing in stores or staff
Since the Acquisition
- â–¸Filed for Chapter 11 bankruptcy in November 2020 with $1.3 billion in debt from the Ares Management buyout
- â–¸Retail staffing cut so deeply that employees report one person now does the work of 3-4 people
- ▸Professional-grade gear inventory gutted — stores now primarily stock entry-level equipment instead of pro-level instruments
- â–¸Two California locations closed in January 2025 with 62 employees laid off