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US retailer Guitar Center files for bankruptcy

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coronavirus crisis.According to The New York Times, the company filed on Saturday (November 21) in the US Bankruptcy Court of the Eastern District of Virginia and will continue to pay employees amid bankruptcy.As reported by Bloomberg earlier this month, the chain and its private equity owner Ares Management were finalising bankruptcy terms with support from most of its creditorsUnder a Chapter 11 filing the company would undergo a restructuring.

During this process, Guitar Center would be able to keep operating its 300 US stores and be given a break from having to make debt repayments.

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