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Thread: Guitar-maker Gibson Brands files for bankruptcy

  1. #51
    Lurkist dhergert's Avatar
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Very nice Bowtie, Ivan... I have an RB-180 long neck from that period, came with the Mastertone flathead tone ring and a few other nice appointments, and of course it came with the same Kluson tuners. Only about 350 of these banjos made. Those Kluson tuners are functionally nice though, they all tune the same direction, just have to get used to them.

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    Like with mandolins, there are plenty of excellent boutique banjo builders today. With Gibson currently out of the banjo picture, they are the primary choices. I do have to say, I've been tempted by the Nechville line of banjos, typically great sounding instruments using a number of innovative modern technologies that Tom Nechville has developed. We purchased one for a fledgling banjoist a few years ago, and it was a killer sounding instrument.

    I do think that having Gibson in the banjo marketplace would have given the concept of banjos some more validation among younger players... But on the other hand, the way Gibson was flooding the banjo marketplace before their layoffs, competition among the boutique shops was pretty stiff.
    -- Don

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  3. #52
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Quote Originally Posted by JonZ View Post
    There are so many custom builders making great instruments here in the US, and very high quality US and Asian factory-made instruments. They are as good as or better than what you can find in the range of Gibson products.

    My only thought is, “meh”.
    Your statement is one of the little pieces of truth about the instrument market that Gibson seems to have difficulty coming to grips with. It's kind of like Darwin's theory applied to the musical instrument business. There's always another fish . . .

    There's some really good stuff being made these days.

    One of my students picked up a Bourgeois guitar a couple of years back based on a pre-war Martin 00-18 pattern. To me, it sounds like what I believe its great grandpappy would have sounded like when it was new. A very good instrument.

  4. #53

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    I did not read every post - so forgive me. But if it is Chapter 11 - then it is a reorganization, including the debts. Gibson can theoretically come out of this ok. Sometimes companies, like people, need a reset.

    https://www.sec.gov/reportspubs/inve...nkrupthtm.html

    "A bankrupt company, the "debtor," might use Chapter 11 of the Bankruptcy Code to "reorganize" its business and try to become profitable again. Management continues to run the day-to-day business operations but all significant business decisions must be approved by a bankruptcy court."

  5. #54
    Registered User Ivan Kelsall's Avatar
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    From ABmando - " Sometimes companies, like people, need a reset. ". I totally agreee - as long as they don't kick off from the base they just left !.
    IMHO - Gibson need to get back to basics,building musical instruments - pretty obvious for most of us,but they wouldn't be the first big company to try the 'diversification route' & loose their way,


    Don - I like the Nechville banjos as well.Quite a radical departure construction wise from a standard banjo. I've played a couple, & once i got used to the radiussed fingerboard & the larger frets,they were very comfortable to play,although i found myself looking at the fingerboard all the time,simply because it was different,
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Quote Originally Posted by Ivan Kelsall View Post
    From ABmando - " Sometimes companies, like people, need a reset. ". I totally agreee - as long as they don't kick off from the base they just left !.
    IMHO - Gibson need to get back to basics,building musical instruments - pretty obvious for most of us,but they wouldn't be the first big company to try the 'diversification route' & loose their way,

    Ivan
    Ivan, that's what I hinted at some time ago. They got involved in industries that don't enjoy the same popularity they did years ago. (Almost) no one has a receiver/amplifier on the shelf any more. I remember when you bought the best you could afford and displayed it prominently in the living room. Gibson owns Pioneer, Onkyo, Teac, Cerwin-Vega and Stanton. And, if you don't use the amplifier, you don't need the speakers. (I remember when people bought Bose 901s. They were fairly small but pretty good. I also had a friend who bought Voice of the Theater speakers and you could hear them two blocks away. That didn't last long.)

    Baldwin pianos are quality products but there simply isn't much of a market for them anymore. (Personally, I'd leave it to Steinway and Yamaha.)

    They need to cut their losses and divest themselves of the non-profitables and stick with musical instruments.

    And on another subject, brand recognition isn't always good. One word: Yugo
    David Hopkins

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    Moderator MikeEdgerton's Avatar
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    It seems in vogue this week to have article after article in the main stream media about how Gibson's issues are the result in the downturn in sales of guitars. I think Henry is probably the one circulating that story. Perhaps it was simply bad business decisions. As far as guitar sales go, has anyone considered the fact that market might actually have become saturated and instruments don't go away the same way other consumer goods do? An old guitar hangs around a long time and some actually become more attractive the older they get.
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    I do think that modern electronics (games in particular) have taken the place of musical instruments in the minds of many young people. I've seen it in my kids as they've grown up, and I see it in their circles of friends. It's only natural, because schools teach and encourage the use of computers in every way they can be used, and socially it's very popular with kids to be on the top of the bubble related to the newest devices and games. The irony to me is that many schools have stopped teaching a number of subjects to make time and space for teaching computer related subjects, with discontinued subjects including to a large extent, music.

    And I say this with some understanding because I've been in a career in the computer field for almost as long as I've been into music. But in just about every musical social media circle including musical forums like this one, we find people talking about their kids not being interested in making music with musical instruments.

    Whether HJ's statements about the guitar market are really the reason for Gibson's financial problems or not, we are currently seeing less young people interested in making music than we have in past periods of time. And maybe that's just a natural swing of the pendulum. We have to admit that the period when those more ancient of us present in this forum grew up -- the 50's to the early 80's -- was a wild period of growth related to musical interest (among other subjects). We tend to forget that when we think about the lower popularity of making music today.
    -- Don

    "Music: A minor auditory irritation occasionally characterized as pleasant."
    "It is a lot more fun to make music than it is to argue about it."


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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Quote Originally Posted by MikeEdgerton View Post
    It seems in vogue this week to have article after article in the main stream media about how Gibson's issues are the result in the downturn in sales of guitars. I think Henry is probably the one circulating that story. Perhaps it was simply bad business decisions. As far as guitar sales go, has anyone considered the fact that market might actually have become saturated and instruments don't go away the same way other consumer goods do? An old guitar hangs around a long time and some actually become more attractive the older they get.
    Your point is well-taken. I went to the local Craig's List and on the first page of musical instruments (89 items), 29 of the items were guitars. I didn't count amps, cases, stands, etc., just guitars. People have them around the house and don't know what to do with 'em except put 'em on the market.

    There were comments like "There's absolutely nothing wrong with it. It's just not being played" (Gibson Les Paul, 2017) or "Still looks brand new" (Ovation Celebrity).
    David Hopkins

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    The older I get, the less tolerant I am of political correctness, incompetence and stupidity.

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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    I always liked Gibson guitars and hope to see them come back stronger than ever. As an American, it's always hard to see old American companies having trouble. I think of the history and the employees. Sad deal.

    Having said that, I found the robot tuners on the Les Pauls just plain goofy. Knowing how to tune your guitar is about as simple and basic as it gets. When I first heard about it I honestly thought it was a joke. When I saw them in the store I could not understand why anyone would buy such a guitar. Different strokes, I suppose.

    Good luck, Gibson!
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Apparently this is old, but I just stumbled on it.

    Too funny, considering . . . .

    https://www.gearnews.com/gibson-les-...-damaged-site/

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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Is there new status on this? (I'm seeing some rumors on some of the bass forums.)
    -- Don

    "Music: A minor auditory irritation occasionally characterized as pleasant."
    "It is a lot more fun to make music than it is to argue about it."


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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    1. The judge has approved a settlement of $4.6M to Tronical [robot tuner manufacturer], which was demanding over $60M.
    2. A new CFO has been appointed-- Kimberly Mattoon, a "veteran of high end retail."
    3. CEO Henry Jusckiewicz is "being sidelined-- albeit with full salary and benefits." The search for a new CEO continues.
    4. Four new board members have been named. Four more remain to be named, in addition to the future CEO.
    5. There will be another hearing of some sort tomorrow.

    Those are all the facts I have.

    The process limps along. I would stick to the Nashville Post news articles for information. They will be accurate.

    Unofficially, as of a couple of weeks ago, according to my young friend who works there, Henry J. had not been seen around the plant for a little while, but Dave Berryman was still around. Henry is still a stockholder. Whether or not he is still officially the CEO, I do not know. He may turn up again.

    I would not take much stock in any recent statements by Henry J. concerning Gibson's path in the future.

    What Gibson will do to attempt to recover from bankruptcy will be decided by the new board of directors and CEO. I suspect that they will be concentrating on mending relations with their vendors, cutting costs, making production more efficient, reviewing their product line, and deciding whether or not it is cost effective to maintain manufacturing plants in three cities.

    Rumors will be abundant.
    Last edited by rcc56; Oct-01-2018 at 3:14am.

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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Have Gibson made plans to divest themselves of the 'non-musical instrument' Cos. ?. Regarding manufacturing plant,they only need enough to cover their current order book . If one will do,close the others & deploy as many workers as they need to the single manufacturing base. Not the nicest thing to have to do,but the alternative isn't too good either.

    We'll all have to hope that Gibson as a company comes out of this mess with a viable future.The very name Gibson still has a lot of kudos going for it,& there's still a lot of reverence for the great Co. it once was !!,
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Theres enough used ones out there now to last a life time and then some .. New ones are not worth the amount there listing those for.

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    Loarcutus of MandoBorg DataNick's Avatar
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Quote Originally Posted by Mandolin Cafe View Post
    The article confirms KKR's involvement. Having worked at a company that KKR acquired, all I can say is that people are going to start losing jobs, and who knows what their consultants will advise re:mandolins...not good at all
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    KKR is there to make the business viable so that creditors can eventually get their money (not all, but some). They will hold it, make enough changes to make the company saleable, and then sell it off. They have no deep attachment to the industry. That’s for whoever the next buyer might be.

    Taking companies from the brink of collapse is not an easy job. They go downhill faster than they do up, and it’s always a painful process. The easiest was to cut expenses is always through payroll. That’s an unfortunate reality.
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Its like a restuarant. Once a bad experiance . never go back. Even if a new business takes its place in the same field . its tainted. Bulldoze it and start fresh and keep it Quality gibson minded for the consumers.

  26. #69

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    I can attest first hand to the misery inflicted on workers by KKR. It starts something like this. We own a large stake in a software company. The product is so good, you will be able to do the work that three of you used to do.

    Sure we're in bankruptcy, but this five million investment will pay dividends. So deal with it. And no one needs an HR department on site. That can be done from anywhere. If you have any questions go see the low level HR body we've left to deal with the paperwork while we downsize. Now we need to catch the private jet we have waiting. Have a nice day. Let's see who wants a job bad enough.
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Quote Originally Posted by slimt View Post
    Its like a restuarant. Once a bad experiance . never go back. Even if a new business takes its place in the same field . its tainted. Bulldoze it and start fresh and keep it Quality gibson minded for the consumers.
    “Never” is a strong word. New management can do great things for a restaurant.

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    Moderator MikeEdgerton's Avatar
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Everyone assumes the instruments survive. In this environment I'd wait and see. If they sell off the instrument brand name it could bring in a ton of money and that's probably what they need the most right now.
    "It's comparable to playing a cheese slicer."
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    I feel certain the brand name will survive. Whether the reputation will have the same fate is another question.
    David Hopkins

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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    During all these years Gibson management has been asleep at the wheel many capable, quality competitors have sprung up, and now with their reputations, reviews and "buzz" furthered, pretty much instantly, by the internet.

    I may be in the minority, but when I consider a stringed instrument Gibson is often not the first name that comes to mind. They have name and brand recognition. I don't know however about brand strength and resiliance. A whole lot of great builders out there now. Would love to see a comeback.

    My dos centavos.

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    Registered User Ivan Kelsall's Avatar
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    I still feel that the Gibson name / brand is held in very great respect for it's past instruments & their quality, by musicians all over the world. If Gibson were to actually close completely,then it'll be a very sad day indeed.

    If the Gibson Co.,now in the hands of KKR,is to be rescued,then re-structuring will have to happen to make it viable (?) - but at least it will survive, & hopefully grow again !. As in all Co.re-structuring,there will be folk who loose their jobs,which is a truly dreadful thing to happen - it happend to the aircraft Co.that i worked for many years back. The Co.survived the re-structuring,& eventually re-employed many of the folks who'd been made redundant. If that happens to Gibson,let hope that any employees who do loose their jobs,may eventually have the opportunity go back to work for a re-vitalised Gibson Co. with a firmer base for trading.

    I can't help but feel that KKR will try hard to keep Gibson trading. After all,Gibson is as big a global ''name / brand'' in musical instruments,as Boeing is in the aircraft industry - aircraft are just bigger than banjos,mandolins & guitars ! (LOL !!). I don't think that it's really in the interest of a huge Investment Co. such as KKR to close a global brand such as Gibson (my opinion) - they'd rather be seen as 'the rescuers' - but we'll see - eventually,
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    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Gibson's bankruptcy plan was approved today by the bankruptcy court.

    There was an article today about it in Billboard, but their source was a pre-hearing Reuters article, and their Billboard's quote was not verbatim. I would therefore ignore Billboard as a source.

    Further details are available in a Wall Street Journal article:
    The article states that "Senior bondholders that include Kohlberg Kravis Roberts & Co. are taking over bankrupt guitar maker Gibson Brands Inc. under a chapter 11 plan approved Tuesday by a judge in Wilmington, Del." "Judge Christopher Sontchi said he would sign of on the balance-sheet restructuring for the Nashville, Tenn.-based company, which sought protection from its creditors in May in U.S. bankruptcy court in Wilmington to reduce its debt. Gibson said it expects to exit bankruptcy early next month."

    The complete article is available to Journal subscribers only, and I'm not a subscriber, so someone else will have to pass any further details on, or we'll have to wait until they become available from another source.

    There is also a statement from Brian Fox, Gibson's chief restructuring officer, which is all flowers and butterflies but doesn't really say anything. That statement is available at prnewswire.com.

    It looks like the ball is in the bondholders' court. Maybe we'll have a better idea of what's really going to happen by the end of the year. It's a "fine mess" they've gotten themselves into. They're going to have to dig deep if they really intend to keep the company operating.

    Or maybe they'll just sell off the name and rights.
    Last edited by rcc56; Oct-02-2018 at 10:05pm.

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