Biz ‘Bites:’ IPO Announced, ’21 Spuds Production Rated, Reverse Pitch Competition Updated – Idaho Business Review


Guitar Center launches its IPO

The Boise Guitar Center store. Photo file.

One of the retail tragedies of the past two decades has been the familiar story of the private equity acquisition that leveraged chain buying by going into massive debt. Between the boom in e-commerce retail channels and the aftermath of the Great Recession of 2008-09, physical retail stores have been hit by a decade of bankruptcies, closures and liquidations.

Guitar Center, the country’s largest chain of music stores, could be a poster for the private equity buyout, having been passed on several times between several private equity firms. Guitar Center was acquired for the first time by Bain Capital in 2007 as part of an LBO. After restructuring in 2014, ownership passed to several owners, including Ares Management, Brigade Capital and The Carlyle Group. According to the trade publication Retail Dive, the holding of private capital has made it possible to gain experienced staff and favorite brands of musicians.

Before COVID-19, Guitar Center had 10 quarters of sales growth. COVID-19 has cost the chain its revenue due to store closings and class cancellations. Under the retailer’s $ 1.3 billion in heavy debt, Guitar Center filed for Chapter 11 bankruptcy in November 2020.

Idaho’s only Guitar Center is on the corner of Fairview Avenue and Curtis Road in West Boise. The store survived the procedures of Chapter 11 and remained open. The chain managed one of the quickest exits from bankruptcy given the scale of its debt, deleveraging by $ 500 million and exiting Chapter 11 in December 2020. Retail Dive reported on September 20 that Guitar Center has filed an S-1 registration with the Securities and Exchange Commission for an initial public offering. Going from bankruptcy court to IPO in less than a year is a remarkable recovery.

Final potato production 2020

One of the things we follow on the Idaho Business Review is what makes Idaho famous, and no, we’re not talking about Idaho’s number one position as the national leader in the production of business. ‘barley. In a press release dated September 29, the National Agricultural Statistics Service (NASS) of the United States Department of Agriculture (USDA) released final values ​​for the 2020 potato crop.

Idaho produces about a third of all potatoes grown in the United States. Most potatoes, 90% or more each year for the past three years, are russet.

The final value of the 2020 Idaho potato crop sold was $ 912 million, down 5% from 2019. Idaho’s final production figure in 2020 was 134,775,000. quintals (cwt). This is a 3% increase over Idaho’s final 2019 production of 130,900,000 quintals, which is not surprising given that potatoes at the end of the 2019 harvest was lost in eastern Idaho due to an unexpected frost in early October.

Hacking for Homebuilding competition extends deadline

It’s not too late to apply for this year’s “reverse pitch” Hacking for Homebuilding competition, event organizers recently announced. Teams of students and members of the public can compete for cash prizes while solving real world problems in the home construction industry. The competition now runs through October 7 and will take place virtually. The finalists for each track will pitch at Boise Entrepreneur Week on October 21.

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