Guitar Center Debt Restructuring Looms After Skipped Payments

Guitar Center Inc., the largest U.S. retailer of music instruments and equipment, is trying to work out a deal with its creditors after skipping payments on two of its bonds, according to people with knowledge of the matter.

The chain failed to pay interest on its unsecured bonds due 2022 and first-lien bonds due 2021, the people said, asking not to be identified discussing a private matter. It’s seeking advice from investment bank Houlihan Lokey Inc., which served as Guitar Center’s financial adviser on past efforts to rework its debt, the people said.

The April 15 missed coupon ...