Gibson, facing half billion in debt, lays off custom shop workers


The problems continue at Gibson Guitars, as Standard & Poor’s has downgraded the company and news emerged that Gibson is laying off workers at its custom shop.

>> Read more trending news

“With multiple maturities looming and operating weakness ongoing, we believe Nashville-based Gibson Brands could default on its debt obligations over the next six months,” Standard & Poor’s officials said in a note to clients. “We are lowering our corporate credit rating to ‘CCC-’ from ‘CCC.’”

The negative outlook reflects what S&P Global officials called the “increased likelihood” that a default or restructuring event could occur within the next six months, officials with the rating agency also said.

Also, a Nashville newspaper reported that Gibson has laid off about 15 employees from its Custom Shop, a part of the company dedicated to making scrupulously correct recreations of vintage electric guitars and special one-off orders.

The Nashville Post quoted Gibson Chief Executive Henry Juszkiewicz as saying that the staff cuts are “part of broad initiative throughout the company to prepare for our refinancing.”

The company’s total debt outstanding as of Dec. 31, 2017, was $519 million, S&P Global officials said.
Gibson was founded in 1894 and makes electric and acoustic guitars and consumer and professional audio. Juszkiewicz acquired Gibson in 1986 with fellow investors. The company has a portfolio of over 100 brand names.


Reader Comments ...


Next Up in Nation World

Champaign County economic group creates new position to link students to local manufacturing jobs
Champaign County economic group creates new position to link students to local manufacturing jobs

The Champaign Economic Partnership has created a new, part-time position to better connect students in Champaign County with opportunities at area businesses. Ashley Cook will serve as a business liaison as part of a larger effort to identify potential workers for the county’s manufacturing industry. The CEP is a nonprofit focused on economic...
STAFFORD: Springfield author chronicles history of Ohio agriculture; will discuss at library event
STAFFORD: Springfield author chronicles history of Ohio agriculture; will discuss at library event

At 6 p.m. Tuesday, Springfielder Timothy Thoresen will be in the Gaier Room of the Clark County Public Library to discuss how the family farm fits into the larger history of Ohio agriculture. The scholarly knowledge he brings to the subject was learned in the 14 years it took him to research and write “River, Reaper, Rail,” released this...
Man who got gift as child in Africa spreads word about Operation Christmas Child
Man who got gift as child in Africa spreads word about Operation Christmas Child

When Désiré Nana was 8, living in poverty in Burkina Faso, West Africa, he received an unexpected gift — his first present ever. Now 25 years old and a college student in Tulsa, Oklahoma, Nana is in Ohio this week, spreading the word about the Operation Christmas Child shoebox gift he received that changed his life. “Growing...
Alaska man gets a 'pass' after pleading guilty to assaulting woman
Alaska man gets a 'pass' after pleading guilty to assaulting woman

An Alaska man escaped jail time Wednesday after pleading guilty to assaulting a woman who said he sexually assaulted and strangled her until she lost consciousness, KTVA reported. >> Read more trending news  Justin Schneider, 34, of Anchorage, was convicted on four felony charges -- including kidnapping and assault -- and a misdemeanor...
3D-printed gun creator wanted on child sex charge arrested at Taiwan hotel
3D-printed gun creator wanted on child sex charge arrested at Taiwan hotel

The creator of the 3D-printed gun was arrested Friday in Taiwan after being accused of sexual assault in Texas, CNN reported Saturday. >> Read more trending news  A warrant to arrest Cody Wilson, 30, was issued earlier this week after allegations that he had sex with a 16-year-old girl he met on an adult dating site, according to police...
More Stories