Guitar Center is a struggling company and has been a poor investment for Bain Capital.
Bain purchased Guitar Center back in 2007 as the company had expanded and opened new stores. According to Forbes, the company was last rated in November 2010 as Caa2 by Moody’s Investors Service. According to Moody, Caa2 is defined as “poor standing and a high credit risk” as a long term outlook and has no short term prime ratings.
As of March 2012, the principal long term debt of Guitar Center was $1.57 billion. The company owes, among others, Fender electric guitars 11 million. Guitar Center owns their chain of brick and mortar stores and webstore, Muscisns Friends, Music 1-2-3, Harmony Central, Woodwind and Brasswind and more. As for pro-audio brands, Bain Capital owns Guitar Center and D&M Holdings (Denon and Marantz pro). The company also owns countless companies including AMC Entertainment, Borders, Toy’s R Us, Clear Channel, WorldPay, Burlington Coat Factory and more.
Guitar Center used to be owned by Weston Presidio, same company that holds a large stake in Fender. Fender recently pulled their IPO due to debt reasons and Weston Presidio are looking to cash out on that stock.