I think anybody who is a guitar afficionado has likely seen the quality of Gibson falling and the price rising, the great timbers vanishing and the caps of good timber instead of solid timber being used. The awful striped models and the destruction of an iconic brand. The failure to fix problems in their best models by saying something like "Its what we have always done", the failure of Gibsons venture into electronics manufacturing.
I think in total Gibson has around $500,000,000 usd debt to be payed sometime around June this year.
It is sad that it has come to this but it has been coming for quite a while now.
Guitar company Gibson reportedly facing bankruptcy
The company, whose Les Paul and SG instruments have been played by generations of musicians, including stars such as Slash, Bob Marley and Carlos Santana, was founded more than 100 years ago in Michigan.
CEO Henry Juszkiewicz is thought to be in a race against time to decide whether to exchange the company's debt, look to try and pay it off using his equity or try to declare the company bankrupt.
Sam Meredith | @smeredith19
Published 4:31 AM ET Mon, 19 Feb 2018 Updated 10:07 AM ET Tue, 20 Feb 2018CNBC.com
The company, whose Les Paul and SG instruments have been played by generations of musicians, including stars such as Slash, Bob Marley and Carlos Santana, was founded more than 100 years ago in Michigan.
Gibson's Chief Financial Officer Bill Lawrence recently left the firm just six months before $375 million of senior secured notes were due to mature, according to a report by the Nashville Post earlier this month. He had been working for the company for little over a year before departing.
Gibson, which has annual revenues of more than $1 billion, has another $145 million in bank loans that will be due immediately if those senior secured notes are not refinanced by mid-July, the report said.
