Guitar-maker Gibson Brands files for bankruptcy

marketwatch.com ^ | 5/1/2018 | Austen Hufford

[rktman]

Storied guitar maker Gibson Brands Inc. filed for bankruptcy protection Tuesday as the company has struggled with its debt load after a series of acquisitions.

The company, which filed for chapter 11 in U.S. Bankruptcy Court in Delaware, said it will continue to operate during the proceedings as it focuses on reorganizing around its core businesses. Gibson plans to wind down its Gibson’s Innovations business, which is largely outside of the U.S.

The Nashville-based maker of Gibson Les Paul guitars has been struggling with debt it took on to finance acquisitions of home-entertainment and audio-equipment makers years ago. Among businesses the company has added are some of Royal Phillips’s home-entertainment systems, TEAC and Onkyo stereos.

Gibson said it has reached an agreement with holders of more than 69% of its senior secured notes due in 2018 and shareholders that lets it continue to operate. The company also said existing noteholders have committed to provide $135 million in debtor-in-possession financing.

[rktman]

Mayday! MayDay! Mayday! I know there are some other pickers on here. Any thoughts? Will they see it through? Will that Les Paul Deluxe go up in price? Wish I'd kept the 2000 black out deluxe I had now. ;-(

[left that other site]

Obama’s fault.

I am NOT kidding.

[Mr. K]

Was this the company Obama targeted for buying Rosewood that was willingly shipped from another country?

In other words- there was no complaint of anything illegal.

They just went in and seized all his manufacturing.

And I would love to see GM help accountable for just taking away the money from shareholders.

[pepsionice]

You would think some Chinese billionaire would jump in and buy them.

[George from New England]

Yes, Obama has his fingerprints all over this.

[rktman]

Undocumented wood for the necks and the ceo not being an o’bamski supporter?

[Regulator]

Definitely you are NOT kidding!!

Everyone should remember The True Villains behind the Gibson Guitar Raid

And the Baby Boomers voted for the Kenyan thug?!

Don't tell Eric Clapton.

[wally_bert]

Harbor Freight guitars, one session and throw away.

[GoldenPup]

maker of Gibson Les Paul guitars has been struggling with debt it took on to finance acquisitions of home-entertainment and audio-equipment makers years ago.

In other words...really DUMB management group.

[rktman]

:-) Someone in the far east makes some pretty good knock offs they send over here. Glibsons I think.

[ilovesarah2012]

http://humanevents.com/2014/05/30/the-true-villains-behind-the-gibson-guitar-raid-are-revealed/

[MUDDOG]

Oh well. Back to the Silvertone.

[ClearCase_guy]

Does anyone have statistics on how many young Americans actually play a musical instrument?

Years ago it was somewhat common. I’m not musical at all, but I took lessons in violin, flute and bass guitar. I had no skill at all so I dropped them and couldn’t do a darn thing today. But I tried. Because most people I knew played something.

But I wonder how many kids today can pull themselves away from their phone long enough to pick up a guitar.

[rktman]

Clapton voted for o’bamski? ;-)

[left that other site]

The latter reason more so than the former.

[rktman]

LOL! I sold a ‘64 Silvertone amp not to long ago on Ebay. All original except one tube and in very good condition.

[left that other site]

I’m a Boomer, Gibson Player, and DID NOT vote for the KU.(Kenyan Usurper)

[backwoods-engineer]

Yep, another Obama scalp. A one-administration-business-destroying machine.

[left that other site]

Interesting!

[Blue Highway]

Yeah that was BS when Obama sent the govt. (wasn't it the FBI?) to seize all the rosewood from the factory and held it for months. That definitely contributed to Gibson's losses. I have a couple of the recent Tribute models and happy with them but for the most part Gibson's prices were way more than what they should be. I have only bought their new guitars when they were on severe clearance. I go an SG Standard for less than $1000 a few years ago, one of the Gibson RD reissues for $899 or less I forget, and earlier than that a Gibson BFG (barely finished guitar) for like $500 but that was used.