Page 1 of 4 1234 LastLast
Results 1 to 25 of 98

Thread: Guitar-maker Gibson Brands files for bankruptcy

  1. #1
    '`'`'`'`'`'`'`'`'`'`' Jacob's Avatar
    Join Date
    Sep 2002
    Posts
    940

    Default Guitar-maker Gibson Brands files for bankruptcy

    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

  2. The following members say thank you to Jacob for this post:


  3. #2
    Member
    Join Date
    Mar 2006
    Location
    Helena, Montana
    Posts
    2,872

    Default Gibson files Chapter 11


  4. #3
    Moderator MikeEdgerton's Avatar
    Join Date
    Mar 2007
    Location
    40.191N -74.2W
    Posts
    21,540

    Default Re: Gibsob files Chapter 11

    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.
    "Bargain instruments are no bargains if you can't play them". These are the words of J. Garber.

  5. The following members say thank you to MikeEdgerton for this post:


  6. #4
    Purveyor of Sunshine sgarrity's Avatar
    Join Date
    Oct 2002
    Location
    San Diego, CA
    Posts
    5,142

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    With Henry gone maybe they can get back to making musical instruments and focusing on quality!

  7. The following members say thank you to sgarrity for this post:


  8. #5
    Scroll Lock Austin Bob's Avatar
    Join Date
    Sep 2012
    Location
    Austin, Tx - some call it heaven
    Posts
    1,025

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    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.

  9. #6
    Administrator Mandolin Cafe's Avatar
    Join Date
    Sep 1998
    Posts
    1,398
    Blog Entries
    7

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Similar but more comprehensive article from Bloomberg:

    Gibson Files for Bankruptcy in Deal to Renew Guitar Business

  10. The following members say thank you to Mandolin Cafe for this post:


  11. #7
    Dan Sampson mando_dan's Avatar
    Join Date
    Mar 2007
    Location
    Beverly, MA
    Posts
    199

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Good luck Gibson.
    1999 Buckeye #18 (Bucky)
    198x Flatiron pancake mandola (no name)

  12. The following members say thank you to mando_dan for this post:


  13. #8
    Registered User almeriastrings's Avatar
    Join Date
    Mar 2011
    Location
    Almeria, Spain
    Posts
    5,371
    Blog Entries
    3

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    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.

  14. #9
    Lurkist dhergert's Avatar
    Join Date
    Jul 2012
    Location
    Blue Zone, California
    Posts
    929

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Quote Originally Posted by mando_dan View Post
    Good luck Gibson.
    This ^^^^^
    -- Don

    "It is a lot more fun to make music than it is to argue about it."

    2002
    Gibson F-9
    2016 "$199.00 solid F style" MKLFSTB
    1975 Suzuki taterbug
    (plus a large assortment of banjos, dobros, guitars, basses and other noisemakers)

  15. #10
    Registered User
    Join Date
    Jun 2005
    Location
    High Peak - UK
    Posts
    2,317

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    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.

  16. The following members say thank you to Ray(T) for this post:


  17. #11
    Lurkist dhergert's Avatar
    Join Date
    Jul 2012
    Location
    Blue Zone, California
    Posts
    929

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    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

    "It is a lot more fun to make music than it is to argue about it."

    2002
    Gibson F-9
    2016 "$199.00 solid F style" MKLFSTB
    1975 Suzuki taterbug
    (plus a large assortment of banjos, dobros, guitars, basses and other noisemakers)

  18. #12
    Registered User
    Join Date
    Sep 2016
    Location
    Seattle
    Posts
    153

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    The instrument side of the business is staying, the "lifestyle" side is being shuffled off.
    Attached Thumbnails Attached Thumbnails Click image for larger version. 

Name:	riffsandbeards-1525192009687.jpg 
Views:	61 
Size:	65.3 KB 
ID:	167256  

  19. The Following 10 Users Say Thank You to Bad Monkey For This Useful Post:


  20. #13
    Registered User mtucker's Avatar
    Join Date
    Sep 2008
    Location
    Los Angeles CA
    Posts
    1,328

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    According to Bloomberg, his plan is to remain in place until the company comes out of bankruptcy and then it's unclear if he stays or goes.
    Quote Originally Posted by sgarrity View Post
    With Henry gone maybe they can get back to making musical instruments and focusing on quality!

  21. #14

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    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.

  22. #15

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    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
    Michael Kelly LSFTB
    Arches F style kit
    1913 Gibson A-1

  23. #16
    Registered User foldedpath's Avatar
    Join Date
    May 2007
    Location
    Pacific Northwest, USA
    Posts
    4,704

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Quote Originally Posted by Bad Monkey View Post
    The instrument side of the business is staying, the "lifestyle" side is being shuffled off.
    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.

  24. #17
    Registered User
    Join Date
    Nov 2002
    Location
    So Oregon
    Posts
    782

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    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."

  25. #18
    Registered User foldedpath's Avatar
    Join Date
    May 2007
    Location
    Pacific Northwest, USA
    Posts
    4,704

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    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.

  26. The Following 2 Users Say Thank You to foldedpath For This Useful Post:


  27. #19
    Registered User colorado_al's Avatar
    Join Date
    Jan 2007
    Location
    Boulder, CO & Chesterfield, MO
    Posts
    2,368

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    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.

  28. #20
    Registered User
    Join Date
    Nov 2002
    Location
    So Oregon
    Posts
    782

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    I would like to see GIBSON survive and flourish without Henry J.

  29. The Following 4 Users Say Thank You to Jeff Hildreth For This Useful Post:


  30. #21
    Registered User Blues Healer's Avatar
    Join Date
    May 2015
    Location
    San Diego
    Posts
    39

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    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.

  31. The following members say thank you to Blues Healer for this post:


  32. #22
    Registered User foldedpath's Avatar
    Join Date
    May 2007
    Location
    Pacific Northwest, USA
    Posts
    4,704

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Quote Originally Posted by Jeff Hildreth View Post
    I would like to see GIBSON survive and flourish without Henry J.
    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.

  33. #23
    Moderator MikeEdgerton's Avatar
    Join Date
    Mar 2007
    Location
    40.191N -74.2W
    Posts
    21,540

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Quote Originally Posted by Br1ck View Post
    There is also the new $80 million lawsuit from the European company that developed the auto tune system Gibson thought we all wanted....
    And unless the bankruptcy laws have changed that lawsuit just went away.
    "Bargain instruments are no bargains if you can't play them". These are the words of J. Garber.

  34. #24
    Registered User Walt's Avatar
    Join Date
    Sep 2002
    Location
    West Monroe, LA
    Posts
    287

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Quote Originally Posted by MikeEdgerton View Post
    And unless the bankruptcy laws have changed that lawsuit just went away.
    They would have to bring the suit through the bankruptcy court itself now. And if they were to win, that judgment is treated as an unsecured debt (which is usually wiped out).

  35. The following members say thank you to Walt for this post:


  36. #25
    coprolite mandroid's Avatar
    Join Date
    Oct 2002
    Location
    Outer Spiral Arm, of Galaxy, NW Oregon.
    Posts
    15,562

    Default Re: Guitar-maker Gibson Brands files for bankruptcy

    Wonder if they can escape the Conglomerate Holding company that bought them and made things difficult.
    writing about music
    is like dancing,
    about architecture

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •