Gibson guitar company, maker of the Les Paul, facing bankruptcy after 116 years in business


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

>> Read more trending news 

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 $145 million in bank loans become due, if they aren’t refinanced by July

The departure of Lawrence was seen as a bad sign for a company trying to re-organize.

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. 

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. In 1952 the company brought in famous guitarist Les Paul to sell a guitar based on his own name, which would become 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, and has sponsored hundreds of musicians. 

>> Related: JNCO is closing for good; wide-leg jeans being liquidated

The company moved from Kalamazoo to Nashville in the mid 1980s. 


Reader Comments


Next Up in Nation World

Crews respond to camper fire in Logan County
Crews respond to camper fire in Logan County

Crews responded to a camper fire in the 4900 block of State Route 287 in West Liberty Saturday around 12:20 p.m., according to dispatchers. Initial reports indicated there was ammunition and propane at the location. Dispatchers could not confirm if anyone was injured.  We are working to learn more and will update this page as information becomes...
Officer: Books ‘just as vital as Narcan’ for first responders
Officer: Books ‘just as vital as Narcan’ for first responders

It’s hard to know what impact a traumatic event can have on a child, but Jana Gruber has learned a small gift can make a big difference. Gruber is the founder of Books to the Rescue, a Greene County nonprofit organization that is providing children’s books, games and stuffed animals for dozens of police cruisers, fire engines and life squads...
Gap store at The Greene closing
Gap store at The Greene closing

The Gap store at The Greene Town Center is closing. Gap Inc. previously announced that up to 200 of its namesake stores could close after poor earnings reports. An employee at the Beavercreek location confirmed Saturday the store is having a going-out-of-business sale and will close, but did not have a closure date and referred all other questions...
Dayton probe leads to more than 80 pounds of drugs, 2 arrests
Dayton probe leads to more than 80 pounds of drugs, 2 arrests

Two men are facing a minimum of 10 years in prison and up to a $10 million fine after they were caught with more than 80 pounds of drugs on Tuesday, according to a criminal complaint. Michael Nailen, 53, and Marco Gonzalez, 47, are accused of possession with intent to distribute more than five kilograms of cocaine. Both are being held by the United...
Florida mother disappears day after Thanksgiving, community rallies to find her
Florida mother disappears day after Thanksgiving, community rallies to find her

Family members of a mother say she disappeared the day after Thanksgiving and was never heard from again.  >> Read more trending news  Tiffany Wells, 35, has two young children and had just started working at the ULTA in the St. Johns Town Center Action News Jax obtained a missing person’s report that says Tiffany Wells never...
More Stories