Gibson Guitars could Soon Face Bankruptcy

Gibson Brands Inc., one of the two most iconic guitar companies in music history, is facing bankruptcy after years of challenges, according to a report in the Nashville Post and other sources.
The company produce the iconic Les Paul and SG lines, and are favourites of players from Jimmy Page, to Slash, to Carlos Santana and beyond. They were founded over 100 years ago, in Michigan U.S.A.
Explains The Nashville Post, “the situation facing the iconic Nashville-based music instrument maker, which has annual revenues of more than $1 billion, is far from normal. CFO Bill Lawrence recently left the company after less than a year on the job and just six months before $375 million of senior secured notes will mature… On top of that, another $145 million in bank loans will come due immediately if those notes, issued in 2013, are not refinanced by July 23rd.
Responding to the news, Gibson Brands CEO Henry Juszkiewicz outlined their plans to the Nashville Business Journal: “We have been monetizing assets like stock holdings, real property and business segments that could not achieve the level of success we expected. By monetizing these assets, we can reduce debt and generate funds to contribute to business segments that are thriving. It is important to our business to get back to the financial success we had to achieve the best financial terms in the refinancing of our company.”
Here’s hoping that Gibson can figure out their financial issues and stay afloat. If you feel strongly about the company’s dire straits, you can go to their website and buy a new Gibson today. Otherwise, you can go check out their instruments in action wherever music is played and hope for the best.
> Shiuly Akter