After 116 years in the market, iconic guitar brand Gibson faces bankruptcy
As time changes, and those companies that have been in our memories for ages, begin to suffer before the onslaught of new technologies and bad administrative decisions. Although a strange nostalgic revival has existed for some years, this has not prevented Gibson, the legendary guitar maker, from facing one of the most complicated scenarios in its long history.
Gibson is on the verge of bankruptcy
The manufacturer of the mythical Les Paul faces bankruptcy for a debt of 357 million dollars, which it must settle before July 23 if it doesn’t want a fine of 145 million dollars.
When the guitars cry
This complicated scenario recently led to the departure of Bill Lawrence, CFO of Gibson, who had joined the company only six months ago. Also, Gibson had to leave his factory and offices in Nashville, where they had been operating since the mid-1980s, and which were known as “Gibson’s Home.”
Henry Juskiewicz, president of Gibson, now seeks to put things in order and face this difficult financial situation, which arose due to bad business decisions. However, he is convinced that his department of ‘music instruments’ and ‘professional audio’, which are the most profitable, can help to clean up finances.
On the other hand, Juskiewicz said that if everything goes well and can settle the outstanding debt, they will have to study the products with growth potential and stop producing those that are not up to the company’s level.
Gibson was born in 1902 in Kalamazoo, Michigan, United States, and it is estimated that its annual income exceeds one million dollars. The bad news is that if Gibson fails to pay the debts, control of the company will go to the owners of the bonds, who claim that there has been no clarity in the management of the company.
The Les Paul guitar, its key product and designed by the legendary guitarist, entered production in 1952 and since then it has become a symbol of music and Gibson, being today one of the most emblematic musical instruments of history. The Les Paul has gone through the hands of legends like Jimmy Page, Ace Frehley, Eric Clapton or BB King.