Gibson files for bankruptcy

[buckallred]

Recall the CEO (Henry J) constantly bleating that "[Gibson] is not a guitar company, we are a music lifestyle company."

Now I'm please to see that, with his creditors twisting the hell out of his arm, he has now changed his tune to this [bankruptcy] is a "decision to re-focus on our core business, musical instruments."

He is such a piece of work.

[Athens]

I'm probably going to get a lot of flak for this, but I won't miss them even if they do morph into an entirely different company and Gibson guitars are never the same again.

I had a 1964 J-45 nat adj and probably should have held onto it. I keep saying "If I'd gotten rid of the Ex-wife first, I'd still have my J-45."

But I haven't liked any Gibson I've played since or after the Norlin debacle.

This will have more of an immediate financial impact on the vendors and subs than on Gibson itself as a company. They are the ones who are going to have to absorb the losses that the bankruptcy court metes out. Some of the smaller ones may even have to file chapter 11 themselves due to what they'll have to write off.

Gibson will continue under reorganization.....BUT, going forward it'll be interesting to see how many of their current vendors and subs stick with them.

We'll just have to wait to see what the next "chapter" brings. (see what I did there? )

[H165]

For many of us it would be a shame to see an iconic American company be purchased by a foreign business.

Yep. Look what happened to Chrysler/Dodge/Jeep.

Often times bankruptcy is a way to cheat and fraud creditors.

I don't see it as cheating anyone.

Obviously you have never been on the short end of such a legal nightmare.
Creditors and judgement holders are cheated every day by bankruptcies.

[motojosh]

Posted by Music Trades Magazine this morning--has a few more details than I've seen in the popular press articles:



(Sorry for the massively large pic; no idea how to resize that. From https://twitter.com/MusicTrades.)

[wooglins]

Originally Posted by buckallred

Recall the CEO (Henry J) constantly bleating that "[Gibson] is not a guitar company, we are a music lifestyle company."

Now I'm please to see that, with his creditors twisting the hell out of his arm, he has now changed his tune to this [bankruptcy] is a "decision to re-focus on our core business, musical instruments."

He is such a piece of work.

I think he is gone.

The company, which filed for Chapter 11 bankruptcy protection in Delaware, has struck a deal with the majority of its creditors that will allow business to continue and its instrument manufacturing to carry on.
But experts say the bankruptcy foreshadows the departure of CEO Henry Juskiewicz, who, along with partner Dave Berryman, rescued Gibson from the brink of collapse 32 years ago and returned the company to prominence. Gibson makes guitars, banjos and mandolins and its subsidiary, Baldwin, is a popular piano maker.

[murrmac123]

I think all the criticism of Gibson is totally unfair, as is all the criticism leveled at Henry, who is doing a great job in the face of adversity.

Furthermore, I don't believe for one minute that any company, or individual, would ever fraudulently file for bankruptcy as a means of avoiding their financial obligations.

[Athens]

Originally Posted by murrmac123

.................Furthermore, I don't believe for one minute that any company, or individual, would ever fraudulently file for bankruptcy as a means of avoiding their financial obligations................

It happens all the time, but I don't think anyone is saying that the intent was fraudulent, just that the creditors are the ones who take the hit financially. The smaller ones are less capable of absorbing it.

There's a stigma to personal bankruptcy, but it's just another tool in the arsenal in the business world.

[Rev Roy]

Originally Posted by Athens

I haven't liked any Gibson I've played since or after the Norlin debacle.

Originally Posted by EverettWilliams

The Real Gibson’s been dead for decades.

Ummmm...okay, guys, I’ll get off your lawn now.

[hifivic]

Originally Posted by murrmac123

I think all the criticism of Gibson is totally unfair, as is all the criticism leveled at Henry, who is doing a great job in the face of adversity.

Furthermore, I don't believe for one minute that any company, or individual, would ever fraudulently file for bankruptcy as a means of avoiding their financial obligations.

Too much Lagavulan sir! His bad business judgements sank the ship.

[Athens]

Originally Posted by Rev Roy

Ummmm...okay, guys, I’ll get off your lawn now.

I'm not bashing, just saying that they're not my cup of tea. Lot's of people love them and don't like what I do. No problem either way.

[Rmz76]

Originally Posted by motojosh

Posted by Music Trades Magazine this morning--has a few more details than I've seen in the popular press articles:
...

Thanks for posting the Music Trades article. It reveals that all this doom and gloom talk over the past year regarding their poor quality control etc has been been overstated. The filing makes clear their guitar business has been profitable. It's all these other non-related endeavors that have gotten them to this point... Also it makes clear that they have the support of all their debt holders. Very hard to imagine a scenario where Gibson guitars doesn't emerge stronger than before after getting the details of the filing.

Bloomberg's article was published at mid-day today and it echos some of this
https://www.bloomberg.com/news/artic...uitar-business

[murrmac123]

Originally Posted by hifivic

Too much Lagavulan sir.!

Yeah, I wish ... nectar of the gods, but unaffordable over here ...

[Mr. Jelly]

Originally Posted by murrmac123

Furthermore, I don't believe for one minute that any company, or individual, would ever fraudulently file for bankruptcy as a means of avoiding their financial obligations.

I have close associates that have made millions legally filing for bankruptcy. Here's the way it works. Instead of paying taxes they invest that money in say a manufacturing plant. That's called tax abatement. Then after the plants up and running they show financial issues in the business and file for bankruptcy. In this manner they don't have to pay full price for the labor and materials they purchased from their contractors. They like to get involved with small contracting companies so they won't have the money to keep them in court to long. Normally some of them go out of business. To make the big buck it helps to be ruthless.

[Mr. Jelly]

Be advised that Gibson will soon be a different company owned and operated by different people. Only the name will stay the same.

[jpd]

Originally Posted by EverettWilliams

Gibson jumped the shark long ago. I’ve got a lot of Gibsons, but they’re all from Kalamazoo. The Real Gibson’s been dead for decades.

That's your opinion....IMO the 2002 L-130 I had was fabulous in all respects. The only thing I see about Gibson *been dead for decades* is all the fine workers who made 'em in the early part of the 1900's.