Gibson guitar company facing imminent bankruptcy


Gibson guitar company, which has been a staple brand among various musical instruments since 1902, is facing bankruptcy.

According to the Nashville Post, Gibson’s chief financial officer, Bill Lawrence, left after six months on the job and just as $375 million in senior secured notes mature and another $145 million in bank loans become due if they aren’t refinanced by July. The departure of Lawrence was seen as abrupt and a statement about the desperate situation Gibson is in currently.

The company, which generates $1 billion a year in revenues, recently moved out of its Nashville warehouse, where it had operated since the mid 1980s. 

RELATED: Gibson pushes back against bankruptcy talk, hires new CFO

The company owner since then, Henry Juskiewicz, is trying to re-order the company according to the Post but is facing a battle with creditors over bad business decisions. The company recently sold Baldwin piano, and is hoping to see a boost in cash from the various electronics companies it had purchased the last several years.

Gibson began in 1902 in Kalamazoo, Mich., producing various instruments, including acoustic guitars and the Les Paul, designed by noted guitarist Les Paul, which became one of the most iconic instruments ever made. The Gibson Les Paul began production in 1952, and became a staple of the rock and roll movement since. The company since developed other iconic guitars such as the SG, Firebird, the Flying V and he ES-335 among others. 

Various reports, citing experts in the music and financial business, said Gibson would likely survive a bankruptcy due to its name value and tradition, as well as the a strong core business, according to Moody’s, who also cited the company’s balance sheets and organization issues as reasons to downgrade the company. 


Reader Comments


Next Up in Business

What the US Air Force says to do during active shooter situations 
What the US Air Force says to do during active shooter situations 

Active shooter situations have occurred at schools, concert venues, businesses and on military installations in the past few years.  The U.S. Air Force prepares for active shooter scenarios with annual exercises and protocols. The Air Force defines an active shooter as an individual actively engaged in killing or attempting to kill people in populated...
7 things to remember about Wright-Patt false active shooter scenario
7 things to remember about Wright-Patt false active shooter scenario

New findings about the false active shooter incident on Wright-Patterson Air Force Base in August will be released Wednesday. Col. Thomas Sherman, 88th Air Base Wing and installation commander, will brief the findings of the Incident Review Board he ordered to examine all aspects of the Aug. 2 active shooter incident that occurred at the Wright-Patt...
Local leaders court foreign companies for potential investment here
Local leaders court foreign companies for potential investment here

The Miami Valley already is home to two big names in international trade: Fuyao, the Chinese company that makes automotive windshields, and Honday, the Japanese carmaker that for decades has turned out some of the company’s most popular models here. Now, local economic development agencies are trying to land even more foreign investment, pointing...
Christmas shipping deadlines: The last day to send gifts with FedEx, UPS and USPS
Christmas shipping deadlines: The last day to send gifts with FedEx, UPS and USPS

Time is running out to ship your gifts and order them for guaranteed delivery by Christmas Eve.           Monday is the deadline for FedEx's ground and home delivery, while Tuesday is deadline for UPS's most affordable delivery option, UPS 3 Day Select. The deadline for  ...
Lessons learned: How Lordstown might benefit from Moraine’s GM experience
Lessons learned: How Lordstown might benefit from Moraine’s GM experience

An Ohio blue-collar community finds itself with a General Motors assembly plant that doesn’t have a vehicle to assemble or a blueprint for the future. It’s all-too-familiar history for Moraine and Dayton — and the all- too-painful present for the community of Lordstown, where a GM plant faces probable closure. The news is devastating...
More Stories