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Is Guitar Center Private Equity Owned?
🔴 PRIVATE EQUITY OWNED
Guitar Center
Includes GuitarCenter, GC
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 bought Guitar Center in 2007 and saddled it 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
- ▸Went bankrupt in November 2020 — staffing was already gutted and stores had shifted from professional-grade gear to entry-level inventory long before the filing
- ▸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
- ▸Two California locations closed in January 2025 with 62 employees laid off
Sources
- Private equity keeps stabbing Guitar Center — 5 Mag(2020-11-22)
- How Guitar Center went from jukebox hero to bankruptcy — Retail Dive(2020-11-23)
- What Does Guitar Center Bankruptcy Mean? — Rolling Stone(2020-11-22)
- Guitar Center shutting down locations and laying off workers — Taste of Country(2025-02-01)
Also owned by Ares Management
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Frequently Asked Questions
Is Guitar Center owned by private equity?
Yes. Guitar Center is currently owned by Ares Management, which acquired it in 2021. Bain loaded it with $1.6 billion in debt. Ares inherited the wreckage.
What happened to Guitar Center after the acquisition?
Went bankrupt in November 2020 — staffing was already gutted and stores had shifted from professional-grade gear to entry-level inventory long before the filing Retail staffing cut so deeply that employees report one person now does the work of 3-4 people
Who owns Guitar Center?
Guitar Center is owned by Ares Management, which acquired it in 2021.