Guitar Center is filing for Chapter 11 bankruptcy, the latest company to do so amid the ongoing pandemic.Â
The company filed for Chapter 11 bankruptcy Friday, while saying that its 510 stores and website would remain open through the holiday shopping season. Filing for bankruptcy is "an important and positive step in our process to significantly reduce our debt," CEO Ron Japinga said in a statement.
Guitar Center said it is honoring gift cards, store credits, prepaid music lessons and other orders while in bankruptcy.
Guitar Center joins Chuck E. Cheese, Hertz, J. Crew, J.C. Penney, Neiman Marcus and other national retailers that have filed for bankruptcy protection amid coronavirus lockdowns. There have been more than 3,600 Chapter 11 filings from companies as of June 30 — a 26% jump from the year-ago period, according to data from Epiq Global.
The company has more than $1.3 billion in debt, and officials said they've created a reorganization plan that will reduce that figure by almost $800 million. Guitar Center plans to exit bankruptcy by year-end.
Guitar Center has one location in Reno, at 6663 South Virginia Street.Â
(CBS News contributed to this report.)
