Gibson Guitar Brand Files For Chapter 11 Bankruptcy Protection
Nashville-Based Company Has Requested Protection From It's Creditors
Say it ain’t so, the maker of Gibson guitars has filed for bankruptcy protection. The Nashville, Tennessee-based manufacturer has long been rumoured to be facing financial trouble, and on Tuesday it all came to a head.
“Over the past 12 months, we have made substantial strides through an operational restructuring,” Gibson CEO Henry Juszkiewicz said in a statement. Gibson added that the company will “refocus on our core business” of musical instruments, which “we believe will assure the company’s long-term stability and financial health.”
While it’s hardly good news, it’s not as devastating as it first appears. Gibson intends to continue producing its Les Paul, Hummingbird, SG, and other popular lines of guitars, as well as other musical instruments under its Cerwin Vega Dobro, Epiphone, KRK, and Wurlitzer umbrellas. The company will phase out manufacturing on several products under its Gibson Innovations unit, such as novelty guitars, headphones, and other gadgets.
Gibson guitars filed for bankruptcy and no one can figure out why pic.twitter.com/o7wTAXVbjX
— Daniel Danger (@tinymediaempire) May 1, 2018
Gibson was founded in 1894. The company will require a federal judge to sign off on its plan to cut debt with creditors. The company reportedly has the support of nearly 70 per cent of its secured lenders.
Image via Flickr/Larry Ziffle
