Between 1) the general declining trend of guitar sales since a high-point in the 80s (or early 90s), the advent of internet sales, and the declining popularity of rock music in general compared to pop/hip-hop, I don't see much hope for them. They won't keep doors open a lot selling cheap guitars, and they can't afford the overhead of having lots of over-priced guitars on the walls (that probably rarely sell).
What they probably should do is pivot from products to services - focusing on rehearsal space for bands, musical instruction, clinics, "band camps" for white-collar professionals to send their children to when they feel compelled to allay the pangs of regret that accompany the onset of mid-life crisis, mods and repairs, and hardware/software instruction. All of your employees are now contractors who only work when they are scheduled to teach a class or repair something. Vast reduction in inventory and labor costs to be had there.
At the very least, immediate cease and liquidate all aspects of operation that are not profitable. :doh: