Legendary guitar maker Gibson guitars has filed for bankruptcy protection earlier today (May 1st). The filing came in line of the company taking on debt with acquisitions made of home-entertainment and audio-equipment makers in recent past. The company, now in its 116th year, sells more than 170,000 guitars annually in 80 countries, and has pioneered to be one of the most recognizable and respected brands in the guitar community.
Gibson guitars is based in Nashville, TN, and filed for Chapter 11 bankruptcy. Gibson will “re-focusing the company on the manufacturing of world-class, musical instruments and professional audio products and the continued development of the company’s portfolio of iconic, globally recognized brands, including Gibson and Epiphone, by reorganizing around its core businesses.”
Gibson has vowed to “re-focusing the company on the manufacturing of world-class, musical instruments and professional audio products and the continued development of the company’s portfolio of iconic, globally recognized brands, including Gibson and Epiphone, by reorganizing around its core businesses.”
Gibson chairman and CEO, Henry Juszkiewicz, will remain with the company through this phase and transition of the filing, as a shift in control commences with current noteholders.
“Over the past 12 months, we have made substantial strides through an operational restructuring,” said Juszkiewicz. “We have sold non-core brands, increased earnings, and reduced working capital demands. The decision to re-focus on our core business, musical instruments, combined with the significant support from our noteholders, we believe will assure the company’s long-term stability and financial health.
“Importantly, this process will be virtually invisible to customers, all of whom can continue to rely on Gibson to provide unparalleled products and customer service.”
“We are grateful for the continued support from our employees, customers, dealers, partners and suppliers as we move through the restructuring process,” said Juszkiewicz. “The Gibson name is synonymous with quality and today’s actions will allow future generations to experience the unrivaled sound, design and craftsmanship that our employees put into each Gibson product.”
JT “Doc” Berry \m/