Gibson facing bankruptcy

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DeadlyErnest
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Gibson facing bankruptcy

Post by DeadlyErnest » 02 Mar 2018, 12:03

https://www.cnbc.com/2018/02/19/guitar- ... uptcy.html
Iconic guitar brand Gibson could be on the brink of bankruptcy, according to a report.

The company, whose Les Paul and SG instruments have been played by generations of musicians, including stars such as Slash, Bob Marley and Carlos Santana, was founded more than 100 years ago in Michigan.

Gibson's Chief Financial Officer Bill Lawrence recently left the firm just six months before $375 million of senior secured notes were due to mature, according to a report by the Nashville Post earlier this month. He had been working for the company for little over a year before departing.

Gibson, which has annual revenues of more than $1 billion, has another $145 million in bank loans that will be due immediately if those senior secured notes are not refinanced by mid-July, the report said.

CEO Henry Juszkiewicz is thought to be in a race against time to decide whether to exchange the company's debt, look to try and pay it off using his equity or try to declare the company bankrupt.
Sounds like a decent revenue but apparently debt is getting out of control. Some of their more recent experiments like the robotune must have cost them a bit while being pretty hare brained. I think they have also bought some companies that haven't made them any money.
Last edited by DeadlyErnest on 03 Mar 2018, 08:07, edited 1 time in total.
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Soong
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Re: Gibson facing bankruptcy

Post by Soong » 02 Mar 2018, 15:11

Someone will buy the brand for sure. It's too classic not to.
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veebass
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Re: Gibson facing bankruptcy

Post by veebass » 02 Mar 2018, 15:15

It and Fender have had a number of different owners over the years.
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packrat
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Re: Gibson facing bankruptcy

Post by packrat » 02 Mar 2018, 16:09

I saw a report that they're starting the downsizing by firing all their senior custom shop people. Ho ho.

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jezzamac
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Re: Gibson facing bankruptcy

Post by jezzamac » 02 Mar 2018, 16:48

I saw that they had about $375 million in bonds which are due to mature and become payable in June-September. I also think their venture into consumer electronics etc was ill-considered.
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DeadlyErnest
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Re: Gibson facing bankruptcy

Post by DeadlyErnest » 02 Mar 2018, 18:06

Typically these days it's a cashed up Chinese company who buys out a brand like this.

The most extreme example is the poor old MG.

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blizzard
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Re: Gibson facing bankruptcy

Post by blizzard » 02 Mar 2018, 19:36

DeadlyErnest wrote:
02 Mar 2018, 18:06
Typically these days it's a cashed up Chinese company who buys out a brand like this.

The most extreme example is the poor old MG.

Image
Counterpoint to this is Jaguar/Landrover and Volvo which were bought by Indian and Chinese companies and have only gotten better.

From what I understand the Gibson guitar portion is profitable but it's the debt they took out to buy companies like Phillips Electronics that is causing the issue.

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veebass
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Re: Gibson facing bankruptcy

Post by veebass » 03 Mar 2018, 06:12

This thread is an example of how different this forum is to TB.
Similar topics on TB have inevitably degenerated into places where people , mostly with little knowledge, opine on the shortcomings of Gibson basses.
Well done OZbass!
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packrat
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Re: Gibson facing bankruptcy

Post by packrat » 03 Mar 2018, 08:00

However we are driving the Australian popcorn industry out of business.

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BazzBass
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Re: Gibson facing bankruptcy

Post by BazzBass » 03 Mar 2018, 11:29

TB is no longer worth visiting

even the poms have a better forum
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DeadlyErnest
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Re: Gibson facing bankruptcy

Post by DeadlyErnest » 03 Mar 2018, 11:32

This thread is an example of how different this forum is to TB.
Similar topics on TB have inevitably degenerated into places where people , mostly with little knowledge, opine on the shortcomings of Gibson basses.
Well done OZbass!
Ugghhh. Short scale basses. :peep:
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veebass
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Re: Gibson facing bankruptcy

Post by veebass » 03 Mar 2018, 11:54

DeadlyErnest wrote:
03 Mar 2018, 11:32
This thread is an example of how different this forum is to TB.
Similar topics on TB have inevitably degenerated into places where people , mostly with little knowledge, opine on the shortcomings of Gibson basses.
Well done OZbass!
Ugghhh. Short scale basses. :peep:
I don't like short scale basses either, but have around ten Gibson basses- most of the older ones I have actually have a 34.5 " scale. :lol:
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slowlearner
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Re: Gibson facing bankruptcy

Post by slowlearner » 03 Mar 2018, 12:42

Well, if they're bought by the Chinese, does that mean they'll finally starting pricing them reasonably?
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packrat
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Re: Gibson facing bankruptcy

Post by packrat » 03 Mar 2018, 14:26

slowlearner wrote:
03 Mar 2018, 12:42
Well, if they're bought by the Chinese, does that mean they'll finally starting pricing them reasonably?
It's an open question whether people want them priced more affordably, or they want them to be made really well. One of those is more likely than the other in this case.

B>

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Aussie Mark
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Re: Gibson facing bankruptcy

Post by Aussie Mark » 03 Mar 2018, 18:19

DeadlyErnest wrote:
03 Mar 2018, 11:32
This thread is an example of how different this forum is to TB.
Similar topics on TB have inevitably degenerated into places where people , mostly with little knowledge, opine on the shortcomings of Gibson basses.
Well done OZbass!
Ugghhh. Short scale basses. :peep:
Thunderbird, Ripper, Grabber, G3, LPB, EB2013 or whatever it's called, RD, Victory. All long scale. And a few others I've probably forgotten off the top of my head. I reckon they've made more long scale models than short scale models over the years?

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