Gibson / Facebook
Early this morning, legendary guitar company Gibson filed for Chapter 11 bankruptcy. This comes as a result of several years of decline in quality of the product and supposed decline in quality of leadership. A few months ago, it was reported that Gibson was facing an outstanding debt of $375 million, which if not paid by July 23rd; an extra $145 million would be owed as well.
Decline in sales due to seemingly overpriced instruments almost certainly denoted that Gibson could not pay this note by the given deadline. As such, the company did what most financial experts predicted they would by filing for Chapter 11 bankruptcy. CEO Henry Juszkiewicz released this statement shortly after…
“Gibson will emerge from Chapter 11 with working capital financing, materially less debt, and a leaner and stronger musical instruments-focused platform that will allow the Company and all of its employees, vendors, customers and other critical stakeholders to succeed.”
It was also reported a few months ago that shareholders within the company sought to have Juszkiewicz removed from as the CEO mainly because they felt that he was responsible for the company’s financial woes. However, it hasn’t been reported that he will be stepping down, so it seems that he is here to stay, at least for now.
All in all, we hope for the best for Gibson. This is a company that has literally helped shape rock music into the pop-culture juggernaut it is today. Their guitars have given a voice to some of rock’s greatest guitarists such as Jimmy Page, Randy Rhoads, and Slash just to name a few. Keep your fingers crossed that this company makes the turn-around it so desperately needs!