It appears that it is only a matter of time before Gibson guitars (aka Gibson Inc.) finally succumbs to it’s debt as it has been reported that the company has filed for bankruptcy protection. It has been reported by Bloomberg that the giant has filed for Chapter 11 bakruptcy protection as it seeks to “change ownership”.
The ongoing dispute between the shareholders and current CEO has been long-running and it seems to have finally come to a decisive action and one that will not beenfit the brand. As current stockholders including CEO Henry Juszkiewicz are now having to switch ownership of the company to its lenders, which include investment firms like Melody Capital Partners and Silver Point Capital.
The company has been struggling financially for many years and with many surplus divisions of the brand being closed down, especially the ill-fated “consumer electronics” division Gibson Innovations, so that it can concentrate on its core musical instrument range.
In an interview with Variety current CEO Harry Juskiewicz said the restructuring “will be virtually invisible to customers, all of whom can continue to rely on Gibson to provide unparalleled products and customer service.”
But as the continuously forming dark cloud gathers a meaner face it is worrisome for the brands long-term future. A big slab of sunshine is needed for the iconic guitar brand.