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New Fender American Pro Jaguars / Jazzmasters
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Joined: 27 Oct 2011
Posts: 1148

PostPosted: Sat Dec 10, 2016 10:39 am    Post subject: Reply with quote

Dillon wrote:
I recall reading that Fender agreed to pump inventory into Guitar Center to keep them in business, and they're unable to sell it fast enough. So GC is massively in debt. Effectively, then, Fender gets a portion of that debt. But now I can't find any articles to back that up. Anyhow, if GC goes bankrupt, what happens to all that inventory? Fender has to buy it back? Though, doing some research now, it seems they're doing better since the last time I checked.

I've heard the same thing for years and years too (from guys working at local guitar shops), but can't find any thing solid to support this supposition.
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Joined: 22 Apr 2006
Posts: 7639

PostPosted: Mon Dec 12, 2016 2:51 pm    Post subject: Reply with quote

When we dealt with Musicians Friend we were on net 30 billing, which means we shipped them shit and they paid in 30 days. I imagine a company as colossal as Fender might have different terms, but I also would be surprised if they were still taking much risk for GC/MF.

*footnote- I guess technically we do still work with MF, but they have no human buyers or contact, so they mostly order discontinued shit that we don't send them, and a few fuzz pedals every couple months.
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