NO LOVE AT STAPLES (09/12/25)

SEPTEMBER 12, 2025 — 157 EMPLOYEES IN OHIO, NORTH CAROLINA, TEXAS, AND FLORIDA

Following previous layoffs in 2024, Staples' subsidiary, Essendant, is undergoing significant restructuring, involving layoffs and distribution center closures, particularly as it exits the independent dealer channel.

The company plans to close warehouse facilities in Twinsburg, Ohio (with 100 employees, effective September 2025), Charlotte, North Carolina (with 68 employees in November 2025), Orlando, Florida (73 employees by December 31, 2025), and Houston, Texas (92 employees on November 7, 2025).

Other closures are anticipated.

SEPTEMBER 14, 2019 — 200+ LAYOFFS REPORTED WITH COMPANY-WIDE IMPACT

It is being widely reported that the company has laid off 200+ employees, mostly at the Framingham, Massachusetts headquarters, including layoffs in IT, Human Resources, and other staff functions.

A company spokesperson noted, “Any efforts we undertake to streamline the organization are aimed at speeding our decision-making and enabling us to focus on our customers. We will continue to look at the best structure to compete in a rapidly evolving marketplace.”

JUNE 1, 2018 — STAPLES LAYS OFF ANOTHER 100 EMPLOYEES

It appears that Staples is consolidating its distribution operations and moving from Henderson, North Carolina to its enlarged distribution center in Charlotte, North Carolina. Approximately 100 employees have been laid off. 

After its acquisition on September 12, 2017, by New York-based Sycamore Partners for $6.9 billion, multinational office supplies retailer Staples, based in Framingham, Massachusetts, laid off 177 workers, said to be mostly IT employees.  

From the TAA (Trade Adjustment Assistance) paperwork submitted to the U.S. Department of Labor, by a “Workforce Specialist” in Broomfield, Colorado, it is suggested that many of these jobs were outsourced to a foreign vendor.  

The Trade Act of 1974 (19 USC § 2271 et seq.), as amended, established Trade Adjustment Assistance (TAA) to provide assistance to workers in firms hurt by foreign trade. Program benefits include long-term training while receiving income support. TAA provides both rapid and early assistance. Filing this petition is the first step in qualifying for TAA benefits and assistance. After the petition is filed, the U.S. Department of Labor will determine whether a significant number or proportion of the workers of the firm have become totally or partially separated or are threatened to become totally or partially separated, and whether imports or a shift in production or services to a foreign country contributed importantly to these actual or threatened separations and to a decline in sales or in production of articles or supply of services.  

The company refuses to comment, releasing only a terse statement. “We are strategically restructuring our organization in order to support the needs of our customers and align with our business priorities. As a matter of policy, we do not discuss staffing figures.” 

Many Staples employees are said to be fearing the one-year anniversary of the acquisition when existing agreements containing severance provisions may expire.  

The new Staples owner, Sycamore Partners, also owns other retailers such as Coldwater Creek, Hot Topic, Nine West, and Talbots. 

Ironically, on October 14, 2016, Staples posted an article on its website touting the benefits of outsourcing. “Business outsourcing can sometimes seem like a daunting strategy that adds more moving pieces to your business. However, when done correctly, it can add layers of expertise, release you from tedious chores and let you concentrate on running your business more effectively.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

NO LOVE AT GUITAR CENTER (11/23/20)

NOVEMBER 23, 2020 — BANKRUPTCY!

Guitar Center filed for Chapter 11 bankruptcy on 11/21/20 in the United States Bankruptcy Court of the Eastern District of Virginia with a prior agreement with creditors. The company was plagued with debt and suffered major revenue loss as customers shopped in the stores where they could try, touch, and feel the goods — and the purchased online at a discount.

OCTOBER 28, 2020 — MORE RUMORS OF IMPRENDING BANKRUPTCY OR SALE

According to published reports, the company has missed a $45 million October interest payment and is in talks with creditors to avoid a default after a thirty-day grace period, after which could lead to a bankruptcy filing. The company faced a similar situation in April when it avoided bankruptcy using a distressed debt exchange.

The company is owned by a private equity firm Ares Management, which acquired its majority stake in 2014 by converting some of the debt it owned in the retailer into equity.

Original post…

Rumors regarding the financial condition of Westlake Village, California-based Guitar Center are swirling in the trade press, some suggesting that Guitar Center may be facing imminent bankruptcy or default on its debt obligations.

 It has been reported that a number of employees may be at risk for layoffs as the company attempts to recover from its financial difficulties.   

Many are pointing to the troubled nature of well-known guitar manufacturers and the changing nature of today’s music business as the proximate cause of Guitar Center’s decline. Others point to the company being run by financial engineering specialists at investment firms rather than retailers and musicians.

With more and more algorithmic sophistication, weak voices can be turned into powerhouse singers and non-musicians can actually create music. Traditional music marketing appears to be dying as record labels turn to 360-degree deals to capture profits in merchandising, videos, and ancillary-branded products. Why pay for music works individually when entire music libraries are available for listening at little or no cost. 

The financial juggling game continues …

It appears that Guitar Center has managed to re-negotiate a portion of its billion-dollar debt by exchanging its 9.625% Senior Unsecured Notes due 2020 with replacement 13% Cash/PIK (Payment In Kind) notes due 2022. 

April 12, 2018 – "Guitar Center, Inc. (the “Company”) announced the expiration and final results of its previously announced exchange offer and consent solicitation to (i) exchange its existing 9.625% Senior Unsecured Notes due 2020, of which there are currently $325 million aggregate principal amount outstanding, for (a) 5% Cash/ 8% PIK Notes due 2022 and (b) warrants to purchase shares of common stock, par value $0.01 per share, of Guitar Center Holdings, Inc., a Delaware corporation and the direct parent of the Company, and (ii) solicit consents to certain proposed amendments to the indenture governing the Existing Notes, commenced by the Company on March 12, 2018".

"At settlement, the Company issued $317,957,000.00 in aggregate principal amount of Exchange Notes, paid an Early Tender Consideration of $1,589,785.00 and support party fees totaling $1,512,775.00 in cash and Holdings issued Warrants, in each case, in exchange for Existing Notes validly tendered and accepted for exchange pursuant to the Exchange Offer. The New Securities have not been registered under the Securities Act of 1933, as amended or the securities laws of any state and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act and applicable state securities laws."

For those unfamiliar with PIK’s, “a PIK or payment in kind is a type of high-risk loan or bond that allows borrowers to pay interest with additional debt rather than cash. This makes it an expensive, high-risk financing instrument because the size of the debt may increase quickly, potentially leaving lenders with big losses if the borrower is unable to pay back the loan.”

March 14, 2018 -- "Guitar Center, Inc. announced that its indirect wholly owned subsidiary Guitar Center Escrow Issuer, Inc. has priced $635 million in aggregate amount of 9.500% senior secured notes due 2021 at an issue price of 98.140%. The Notes are being offered to “qualified institutional buyers” in a private placement, in reliance upon the exemption from the registration requirements of the Securities Act and certain non-U.S. persons outside the United States in accordance with Rule 902 under the Securities Act. The Notes Offering is expected to close on March 16, 2018, subject to customary closing conditions. Following satisfaction of conditions including the completion of the Company’s exchange offer and consent solicitation relating to the Company’s 9.625% Senior Notes due 2020, the Issuer will be merged with and into the Company, with the Company surviving."

"The Company intends to use the net proceeds from this offering, together with borrowings under the Company’s $375.0 million senior secured asset-based revolving credit facility (the 'ABL Facility'), to (i) redeem all of the Company’s outstanding 6.500% Senior Secured Notes due 2019 (including accrued and unpaid interest, if any, to the redemption date) and (ii) pay fees and expenses related to the Notes Offering, the Exchange Offer and an amendment and extension to the ABL Facility.

"The Notes will not be registered under the Securities Act of 1933 or the securities laws of any state and may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security, nor shall there be any sale of the Notes or any other security of the Company, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction."

The play here is to move the maturity dates further toward the future to give the company additional breathing room to operate.

The ratings companies such as Moody’s and S&P Global appear unimpressed, with the ratings suggesting a high-degree of risk, weakest creditworthiness relative to other debt issuers, and have the greatest prospect for the recovery of principal or interest. 

The 59-year-old company, controlled by their primary investor Ares Management. L.P., is said to be the world’s largest retailer of musical instruments and associated paraphernalia.

For employees, the handwriting is clearly on the wall and it remains to be seen if Guitar Center can overcome the plague that is affecting the retail sector. 

Are you asking yourself, Am I Next?

NO LOVE AT BON-TON STORES (UPDATED)

The massacre of retailing in malls and shopping centers continues with the closing of Bon-Ton Store’s Carson’s and Bergner department stores in Illinois and the lay off of 330 employees. Bon-Ton has filed for voluntary Chapter 11 bankruptcy.

In a regulatory filing with the Securities and Exchange Commission, “The Company’s stores, e-commerce and mobile platforms under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger’s and Younkers nameplates are open and operating as usual. As previously announced, the Company is closing 47 stores in 2018, four of which closed in January and one store that is near completion and 42 additional at which store closing sales began on February 1, 2018, and will run for approximately 10 to 12 weeks.” 

UPDATE: MAY 17, 2018

It appears that Bon-Ton, which entered bankruptcy in February 2018  cannot find a buyer for its stores and is starting to shut down operations, laying off up to 1,800 area employees and liquidating inventory before shutting the doors.  This according to the State of Illinois Monthly WARN (Worker Adjustment and Retraining Notification) Activity Listing for April 2018.  

UPDATE: MAY 18, 2018

It appears that the count employee layoffs is increasing and now appears to be over 2,000. employees.

Are you asking yourself, Am I Next?