I agree with Alan - the industry can't support 3 major chain stores. The whole thing has been a house of cards. I was having that same conversation with a small family owned music store that has been the "pro shop" in my city for about 40 years (fortunately Mars didn't do them in). Ironically, we were having the conversation the day before the Mars issue went public.
I can't begin to imagine how much Mars owes to Roland or
Shure or
Behringer or whoever. If those manufacturers take a huge hit - they have to recoup the loss somehow (can you say price increase) - so this is bad for everyone.
Naturally, the manufactures will want to help Mars work thru this if they can (lets face it Mars moves alot of gear - at least certain gear). But, I'm guessing Mars won't have nearly as much gear to sell (even in the stores it plans to keep).
Regarding the floor space alloted to guitas vs. recording gear. If you talk to almost any music store they will tell you they sell more guitar gear than anything. Most guitar players own several guitars and amps (hell guitar ain't my main axe and I own 9 and 4 amps, etc etc). So common marketing dictates that you allot more space to that which sells the most!!!
I do take issue with a comment by kjam22 - if we all use the local store (Mars, or who ever) to simply check out gear we plan to buy on the internet - then naturally those store will go under - and if they go under so does the opportunity to check out gear.
I work in a drum shop (and I'm actually one of the rare guys who actually does know about the gear I sell) and I have had guys come in and pick my brain for info, try out various kits (sometimes over several visits) and then later come in buy a set of sticks - only to tell me they bought drums "on line". If everyone does that - then on line will be the only place left to buy.
So I for one hope Mars can pull through - cause if they stiiff the major manufacturers - the indendant stores will feel the impact - and in todays economy they are all barely geting by.