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  • Guitar Center to be acquired by Bain... (p.2)
2014/03/04 20:44:57
Ham N Egz
Just a Sterling example of  private branding and what happens .....
 
 
 
 
 
see, see it???
2014/03/04 21:16:54
ampfixer
Most big commerce theses days revolves around buying and selling debt. And of course, the care, feeding and packaging of debt. Business is the only true global power.
2014/03/04 21:34:07
bitflipper
I'm sure Bain will turn GC into a healthy, profitable company that provides good-paying jobs.
 
Just like they've done for so many other companies
 
 
2014/03/04 21:38:04
Rain
Usually, the only reason I go to Guitar Center is that I'm impatient and it's quicker to just drop by and pick up what I want than to order it online. 
 
Quicker seems to be relative though - last time I went to buy my little Fender Frontman 25 practice amp. After 5 minutes, one of the guys finally told us he'd be right with us. We waited for 15 more minutes. When he finally got to us, I showed him the amp, he looked it up on the computer and he went to get the one they had in the back.
 
He was gone for an eternity - at that point, I think there was no one left to help customers in the entire department.
 
He came back empty handed and said they couldn't find it. I ended up buying the demo at a discount.
 
I wish Sweetwater were in Vegas...
2014/03/04 21:40:44
drewfx1
Regarding the OP and thread title:
 
Bain already owns GC. They are essentially cashing out by giving it to the creditors. It's how the acquisition game works:
 
1. You buy into a company. 
2. You secure debt. The more the merrier!
3. The debt is used in part to reward yourself management for "rescuing" the company by securing debt.
4. The company now needs to generate cash to make debt payments.
5. If the company can keep up with the debt payments and come out ahead you win! If it can't, then you cash out in one way or another, and if the management fees, bonuses etc. cover your investment plus a nice profit, you win!
 
 
Fender is in the same deal. A lot of their cash flow that they use to pay off their debt is generated by GC.
2014/03/04 22:08:43
timidi
Fender Depot.
Plastic guitars for all.
2014/03/04 23:22:09
Beagle
I am sure that all of the Bains are related in some distant tree, so yes, I would assume I'm related to Barbara (Space 1999!), Conrad (Different Strokes - "whachu tawkin' 'bout Willis?"), and, of course, the big one you guys left out:  Bane from Darknight Rises...
 
I will be giving away free becan with every purchase of a new guitar IF Bain Capital holds up their end of the bargain by giving me royalties on my name.  I haven't signed a contract yet, but they told me to make sure and wait for their call any day now....
2014/03/05 03:23:35
slartabartfast

2014/03/05 08:29:15
Moshkiae
Hi,
 
In the end, this is a good thing, and it will cut off more and more middle folks, which many of these stores are.
 
If I were Gibson or Fender, I would prime up the online sales, and forget giving the middle man a nickel, specially when they are these companies literally ripping you off!
2014/03/05 09:20:40
michaelhanson
Online sales are not really the optimal method for musicians to buy instruments. Have you ever played a guitar or any stringed instrument? Most that I know would prefer to play the instrument before buying. We tried out dozens of violins for my daughter before she settled in on the one that played best for her.
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