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 WALL STREET JOURNAL
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 WALL STREET JOURNAL
We all knew it was coming.
https://www.msn.com/en-us/money/comp...news11&ffid=gz
Chapter 11 reorganization. Sounds like Henry is gone.
For anyone that isn't familiar with Chapter 11 here is some information.
I merged two threads.
"It's comparable to playing a cheese slicer."
--M. Stillion
"Bargain instruments are no bargains if you can't play them"
--J. Garber
With Henry gone maybe they can get back to making musical instruments and focusing on quality!
Shaun Garrity
http://www.youtube.com/user/spgokc78
And yet I went to a local music venue last night, and Gibson was there as a sponsor, providing guitars and such. Go figure.
Anyone who has followed this is not surprised, but it's sad to see it happen to another iconic American brand.
I have a Les Paul, a Gibson F-5G, and two Onkyo receivers, so I guess I'm set until they get their feet back on the ground. I do hope they continue to make mandolins, Dave Harvey has done great work there.
A quarter tone flat and a half a beat behind.
Similar but more comprehensive article from Bloomberg:
Gibson Files for Bankruptcy in Deal to Renew Guitar Business
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Good luck Gibson.
1999 Buckeye #18 (Bucky)
198x Flatiron pancake mandola (no name)
2020 Kentucky 252 oval hole (Aurum)
Making the international news in Europe, too...
https://www.theguardian.com/business...tcy-protection
Not really the kind of news you'd wish for, mind...
Gibson F5 'Harvey' Fern, Gibson F5 'Derrington' Fern
Distressed Silverangel F 'Esmerelda' aka 'Maxx'
Northfield Big Mon #127
Ellis F5 Special #288
'39 & '45 D-18's, 1950 D-28.
-- 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."
2002 Gibson F-9
2016 MK LFSTB
1975 Suzuki taterbug (plus many other noisemakers)
[About how I tune my mandolins]
[Our recent arrival]
With so many good, independent, mandolin builders out there, should we really care? From a UK perspective, in the 40 or so years I've been interested in mandolins, I can only remember ever seeing one new Gibson mandolin for sale and that was hanging on the wall at TAMCO for some considerable time.
Whilst it would be sad to see an iconic brand discontinued, I don't think my mandolin "career" has suffered in any way by never being able to go out and buy a new Gibson mandolin.
I tend to feel a little sad. About 50 years ago my first nice instrument (a banjo) was a Gibson. I still have a soft spot in my heart for their instruments. I hope their employees are able to weather the coming storm. And Gibson is primarily a US-based company and I have a little bias toward that. Chapter 11 doesn't necessarily mean that Gibson is closing, so I'm encouraged by that.
That said, I agree that there are other great builders out there and if I were actively in the market I wouldn't hesitate to shop among them. Similarly, if as a result of the bankruptcy instrument quality goes down (or out of the country) with Gibson, I probably wouldn't buy from them.
But, yea, it's sort of sad. Not unexpected, but sad.
-- 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."
2002 Gibson F-9
2016 MK LFSTB
1975 Suzuki taterbug (plus many other noisemakers)
[About how I tune my mandolins]
[Our recent arrival]
The instrument side of the business is staying, the "lifestyle" side is being shuffled off.
This may be good news if they can unload from the electronics business and focus on building and selling instruments. Chapter 11 is definitely not a death sentence though it may make it more difficult to work with suppliers until they can establish credit again.
There is also the new $80 million lawsuit from the European company that developed the auto tune system Gibson thought we all wanted.
The underlying problem for all instrument makers is the maturation or should I say geriatricification of their core consumers. If I am any indication, and I've found myself smack in the middle of almost every boomer trend possible, the manufacturers stayed afloat selling expensive instruments to older empty nesters still working with a decent disposable income, while at the other end, no social music phenomena has brought fresh blood in sufficient quantity. When I retired, I had a lifetime worth of instruments already, and am more likely to shed instruments before buying more. This just makes for a glut of used product.
From a business standpoint, Gibson's acquisition of electronics companies was their best hope. Hopefully someone with the resources will buy Gibson instrument assets and care about building instruments. I agree the Luthier's out there are formidable competition, and we have been willing to pay for the Gibson name. Will that survive?
Silverangel A
Arches F style kit
1913 Gibson A-1
Yes, but the instrument side will be under new management. If the new management is completely profit-driven, in order to recoup their investment on the shortest possible timescale, then there is no guarantee that Gibson musical instruments will be anything like they've been in the past.
One can hope the level of quality remains the same, that factories and employees are retained here in the USA. But there is no guarantee of that. We may not know for another year how this all shakes out.
Not so fast, read this.. looks like Henry may still be around:
"Juszkiewicz, who has found himself at odds with creditors in recent months, will continue with the company upon emergence from bankruptcy “to facilitate a smooth transition,” according to the agreement. Court papers call for a one-year consulting deal and compensation package for Juszkiewicz. A representative for the company didn’t immediately respond to questions about whether Juszkiewicz will remain as CEO or in a separate role."
I'm not so sure Henry will still be around, except for some temporary cosmetic role.
From what I read about the buildup to all this, one of the main requirements the stakeholders had for another refinancing deal, was that Henry step down. He refused, and that led directly to the bankruptcy result. I can't see the parties holding the strings to allow him anything more than a temporary and probably non-binding "consultant" role and severance package, while the company is split up.
Sounds to me like a way to get him to sign off on the deal by giving him a severance, and try to smooth relations with suppliers until the new Gibson is up and running. I'm expecting that they will try to get profitability any way they can and then unload their investment. I hear Chinese Gibsons calling...
I'm also betting that the investors have already met with potential buyers.
Also imagine that late 2018 Gibsons & beyond will not be quite as prized as previous, until they get things back on track there, if ever.
Last edited by colorado_al; May-01-2018 at 2:39pm.
I would like to see GIBSON survive and flourish without Henry J.
Henry has been the problem for a long time. Many of us know that anecdotally, so it's likely much worse inside the company. One of the first things a new plan should do is address the workplace environment.
Me too.
I would also like to see Dobro auctioned off to someone who would revamp the brand, like the way National Resophonic revived that brand for the modern era.
Probably a slim chance though. There are still thousands of Blues players who value the original National design, but independent luthiers have made better-than-Dobro spider cone guitars for a while now. And the Bluegrass genre just isn't that big, compared to the army of Blues guitar players. I'm a big fan of bottleneck style roundneck Dobro tone, but I'm definitely in the minority. I'm not sure the Dobro brand is worth anything now, after years of neglect by Gibson. Probably destined for Chinese knock-offs, and another historic name bites the dust.
Matt Morgan
https://www.youtube.com/watch?v=jztTl1mas94
Wonder if they can escape the Conglomerate Holding company that bought them and made things difficult.
writing about music
is like dancing,
about architecture
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