Obie will save Fender just like he did GM with a bailout. No worries.dirtyfunkg":2xy57xz5 said:GC is going under pretty soon, and Mesa is the first of what I expect to be many manufacturers that pull out of there. GC is going to pull a whole bunch of manufacturers down with them. Fender is struggling right now too!
https://www.thegearpage.net/board/showth ... ?t=1251829
That thread has a bunch of info, mostly pertaining to Fender, but also to the state of Guitar Center. Craigslist, eBay, and even sites like Rig-Talk, TGP, not to mention manufacturer to consumer sales are hurting big box stores like GC.
angelspade":201e4je9 said:Thought I would chime in here: Guitar Center doesn't actually have a sales / market share problem...They actually never have. They have a debt to equity ratio problem...Thereby creating a NET profit problem, their margins have evaporated. When things were good (economy), they got fat, happy...And stupid very quickly. We see this with publicly held entities all the time. They over-expanded and over saturated...And used a disproportionate amount of debt and issuance to facilitate this directive. They were more than happy to trample upon the graves of long standing, family owned and regional instrument retailers through volume purchasing power undercutting, price fixing and bullying exclusivity agreements with manufacturers. On top of all this good news, they completely ignored service and quality control. Now they have re-consolidated / renegotiated their debts (one again) at a rate approaching 10% (a severe market premium). Ironic, GC will ultimately fail....As it should, as these are the laws of capitalism that should govern fat and over-weighted corporations. The musical instrument superstore: a good idea conceptually, that went horribly wrong.
D-Rock":2mm09qu3 said:Mesa is smart. They are simply evacuating a listing ship.
angelspade":2eji8z7j said:Thought I would chime in here: Guitar Center doesn't actually have a sales / market share problem...They actually never have. They have a debt to equity ratio problem...Thereby creating a NET profit problem, their margins have evaporated. When things were good (economy), they got fat, happy...And stupid very quickly. We see this with publicly held entities all the time. They over-expanded and over saturated...And used a disproportionate amount of debt and issuance to facilitate this directive. They were more than happy to trample upon the graves of long standing, family owned and regional instrument retailers through volume purchasing power undercutting, price fixing and bullying exclusivity agreements with manufacturers. On top of all this good news, they completely ignored service and quality control. Now they have re-consolidated / renegotiated their debts (one again) at a rate approaching 10% (a severe market premium). Ironic, GC will ultimately fail....As it should, as these are the laws of capitalism that should govern fat and over-weighted corporations. The musical instrument superstore: a good idea conceptually, that went horribly wrong.
OUTLAW1969":3ilumxfk said:BrokenFusion":3ilumxfk said:Everyone knows about GC's financial trouble. If I were an amp company I wouldn't want a huge IOU out there for floor stock when the end comes. Smart business move by Mesa IMO.
This.
Mesa does not want to take the hit on gear thats had "Master of Puppets" cranked through it at full volume continuously, out of tune, and in 5 second increments.
yes indeed":39fpfnsg said:This is the official statement.
http://www.mmrmagazine.com/7647/news/me ... s-with-gc/
Mesa does have that reputation. They have filed so many suits against other builders and companies for stealing Mesa ideas that never really were there ideas to begin with.Norton666":1zhnbrbx said:I was a Mesa dealer for quite a few years and this move doesnt surprise me. Mesa have VERY strict requirements of their dealers and when I became a dealer , one of their main selling points to me was that " You'll never see Mesa in Guitar Center or online stores " . Of course that didnt hold true. When I cancelled my dealership and offered discounts on my Mesa gear to clear it out , I was threatened with legal action from Mesa. They also would not honor any warranties on equipment I sold , whether it be at full retail or not , after they found out that I was cancelling my dealership. The whole situation felt like I was dealing with a ex girlfriend throwing a fit because you dumped her.
Norton666":2a75akx5 said:I was a Mesa dealer for quite a few years and this move doesnt surprise me. Mesa have VERY strict requirements of their dealers and when I became a dealer , one of their main selling points to me was that " You'll never see Mesa in Guitar Center or online stores " . Of course that didnt hold true. When I cancelled my dealership and offered discounts on my Mesa gear to clear it out , I was threatened with legal action from Mesa. They also would not honor any warranties on equipment I sold , whether it be at full retail or not , after they found out that I was cancelling my dealership. The whole situation felt like I was dealing with a ex girlfriend throwing a fit because you dumped her.