For over 100 years one of the forewords in the guitar industry was Gibson. Their iconic guitars have been played by some of the biggest rock stars all around the world, but we’ve learned that the company is on the edge of bankruptcy.
It would appear it’s closer than we think, in the Nashville post they said “The situation facing the iconic Nashville-based music instrument maker, which has annual revenues of more than $1 billion, is far from normal. CFO Bill Lawrence recently left the company after less than a year on the job and just six months before $375 million of senior secured notes will mature…On top of that, another $145 million in bank loans will come due immediately if those notes, issued in 2013, are not refinanced by July 23rd…”
One thing is likely affecting the loss of sales, and that is the shift in the musical zeitgiest away from guitars and toward a more digitally-minded song and musician. As well as increased durability of old models has combined with bad financial management to leave the company in a sticky situation.
Reshemi Basu, a reporter for debtwire, didn’t offer much encouragement “At the end of the day, someone will take control of this company — be it the debtors or the bondholders…This has been a long time coming.” With another Senior Credit Officer saying “This year is critical and they are running out of time — rapidly–and if this ends in bankruptcy, [CEO/owner Henry Juszkiewicz] will give up the entire company.”
If you want to help save Gibson, there’s just one thing you need to do. Go and buy a guitar and start a band.