Posted on 05/01/2018 6:58:11 AM PDT by 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.
(Excerpt) Read more at marketwatch.com ...
I am a Boomer and did not vote for 0bama. There are a lot of Boomer names on The Wall and many of them are my brother Marines. Be careful about generalizations.
Treasury also seized Gibson’s computers which, I don’t think were ever returned.
The difference, Gibson donated to pubs but Martin, Fender and Taylor donated to dems.
A prime example of Obama’s IRS sharing info as to which companies were dem friendly and which weren’t. Then, Obama’s Treasury attacked Gibson for doing something completely legal and also being done by the other, dem supporting guitar makers.
Yeah, the company made some goofy decisions but Obama was the real business killer.
Side note: Gibson stopped making Mastertone banjos about 8 years ago.
I’m sure some here have heard of Heritage guitars. They are a guitar company in Kalamazoo Michigan that was started by senior people who worked for Gibson. When Gibson moved out of Kalamazoo, they were offered to move with them, but they stayed, obtained space in the old Gibson factory, and started Heritage. I have one. Very nice guitars.
https://heritageguitars.com/#the-story
The youtube critics have been brutal to both Gibson and Fender’s new guitars. The vintage guitar business seems to be doing well but wealthy collectors are pushing prices up for what’s left.
I have two SGs. No hard cases, though: I just tie the necks together and sling them over my shoulder when I travel.
After that mess with the wood, it’s a wonder the company has lasted this long. Some gov flunky was out to get them with that.
But then, considering what PRS charges for a MIA Custom 24, Gibson isn't overcharging by much...
The “Robot” was also a bad move, as the battery would not take a charge after a while. I had my “Robot” (a $4000.00 experiment) stripped of its microprocessors, wires, knobs, tuning pegs, and general weirdness, and now have a pristine, magnificent Les Paul Studio with Grover Tuning Pegs and a sculpted body that stays in tune and sings like a bird.
I am certain that Gibson could have recovered from the Robot, just like Ford survived the Edsel and Coke survived “New Coke”, but the debacle with “Fish and Wildlife Agents” under the direction of a vengeful and petulant Obama did the dirty deed.
Thanks for the Link!
They have $385 million in debt coming due, and have to pay $185 million in July. Their acquisitions didn’t work out, so they can’t pay.
I have a 1960’s Fender Newporter. Yeah I know they sucked as guitars go, that I need to sell. I’ve had it since 1972 because I decided I wanted to learn to play guitar but had absolutely no talent.
Any idea what it’s worth?
Thanks!
Indeed. Everything has value, at the right price.
From the “grooveyard” of commie lib stupidity. I remember this. Eric Clapner. LOL. Thanks for the memory.
“Obama’s fault.
I am NOT kidding”
Wasn’t that re an error bout types of wood used and Obumster’s EPA prosecuted the company ???
Gee, wonder if that was a Mueller/Weissmann thing?
There are fewer guitar players today. All the pop stuff is electronic, no guitar heroes to inspire the next generation. That and Gibson was seriously mismanaged. No one wants to pay 3-5k for a Les Paul. This beyond the rosewood raid.
I am NOT kidding.
Really? Obama forced them to take on debt to acquire home-entertainment and audio-equipment makers. How did he do that?
“maker of Gibson Les Paul guitars...”
Les Paul guitars are made in Bozeman, Montana as are all of Gibson’s acoustic line of guitars.
Just an FYI.
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