Gibson Guitars going bankrupt?

[BrAinPaiNt]

Earlier this there were some articles that Gibson guitars might have to go bankrupt.

https://www.google.com/search?ei=4X.......0...1c..64.psy-ab..0.0.0....0.ZJFupi5o4cM

I was hoping that in order to make some quick money they would have a huge sale on the last couple of years models.

I only would hope for this to help them out as a company.

I would never hope they would do this so I could get a nice Les Paul or SG at a greatly reduced rate.

 

[YosemiteSam]

Yeah, the biggest problem is how much debt they actually have.

Guitar sales are declining because less and less people listen to rock, blues, and country music. Gibson tried to diverify their business and took on a bunch of debt to do it and it didn't work out. Instead of focusing on the business they were great at, then went into business they didn't understand and started neglecting their business which is why their quality really started to drop off. (though it's been returning of late)

It's a shame. Though I too wouldn't mine getting an SG and/or a Flying V at a discount.

They are likely too deep in debt for that and if they do go out of business. The guitars could end up selling for more than MSRP.

 

[Mountaineerfan]

I have recently found the joys of buying guitars. My daughter is learning and after only 8 months she is pretty good for a 10 year old. We have collected a Taylor and a Fender so far. Her teacher has one that is about 110 years old that might end up as our next one but it is way to big right now.

 

[Sarek]

End of an era!

 

[Reverend Conehead]

This really, really sucks! Maybe someone could buy them out and keep them going.

 

[YosemiteSam]

This really, really sucks! Maybe someone could buy them out and keep them going.

The problem is, they have about $520M in debt that is maturing in August which is almost half their total annual revenue! Not to mention, sales of guitars is declining. Who wants to buy a company buried in debt and who's product market is shrinking...

They are in a very tough situation due to extremely poor decision making by their executive management.

 

[YosemiteSam]

I have recently found the joys of buying guitars. My daughter is learning and after only 8 months she is pretty good for a 10 year old. We have collected a Taylor and a Fender so far. Her teacher has one that is about 110 years old that might end up as our next one but it is way to big right now.

You must collect more like I do!

I have (2) Taylors (Big Baby, and a 414ce) and a Fender (Strat) also. My other two guitars are a Ibanez Prestige and a Les Paul standard.

I'm just a hobbiest guitar player. I don't play with other people and don't really know any songs from start to finish. I just play to relax and only play what I enjoy playing. That said, I also buy guitars because they are pieces of art to me.

 

[Reverend Conehead]

The problem is, they have about $520M in debt that is maturing in August which is almost half their total annual revenue! Not to mention, sales of guitars is declining. Who wants to buy a company buried in debt and who's product market is shrinking...

They are in a very tough situation due to extremely poor decision making by their executive management.

That's a bummer. We can only hope another company makes some great Les Paul and SG copies.

 

[YosemiteSam]

That's a bummer. We can only hope another company makes some great Les Paul and SG copies.

While Chapter 11 is a possibility, it's sounding like that possibility might be rather small. It's more likely a Chapter 7 that will occur therefore requiring a liquidation of all assets. Theoretically, someone could buy all their assets (physical and goodwill) and start up a company under the same name and start making the same guitars again.

 

[Reverend Conehead]

While Chapter 11 is a possibility, it's sounding like that possibility might be rather small. It's more likely a Chapter 7 that will occur therefore requiring a liquidation of all assets. Theoretically, someone could buy all their assets (physical and goodwill) and start up a company under the same name and start making the same guitars again.

Good to know. Thanks. It would be a bummer if they quit making Gibsons altogether. They're such iconic guitars. I owned a '76 Gibson Firebird in high school.

 

[Route 66]

Sad to hear. I am a new player and bought a PRS.

 

[Corso]

Gibson going down... Toys R' Us shutting their doors...
What's next?

 

[Silver Surfer]

Gibson going down... Toys R' Us shutting their doors...
What's next?

Amazon conquers the world and makes Jeff Bezos its king.

 

[Corso]

Amazon conquers the world and makes Jeff Bezos its king.

Sounds... great. I don't enjoy the prospect of not controlling my environment. Things are not to my liking. Time to get to work.

 

[kimrose]

I have my dad's old Gibson he bought brand new back in the early 70s. She's a real beauty. I am wondering, if the company did have to liquidate and go belly up, would this beautiful classic guitar's value be affected? I'll love it no matter what and it aint going nowhere but to my son when I die, but as many hours as I spent by my dad's side listening to him play, and as much as he loved that guitar, it's nice to know it has market value after all these years. It feels good to know he made a good investment when he bought it, especially since he spent a whole week's pay on it, and my mom like to killed him! LOL. It's worth about $3500 today, which I know isn't a lot for guitars, but I would hate to wake up in August when the debt matures and find out she has no value at all.

I'm deeply saddened to hear the Gibson company is in trouble. I grew up on guitars, and the Gibson name is as common to me air and food. But hey, so were the names Sears, Barnes & Noble, and Toys Are Us. So, there's that.

...............

Hey, Sam....my dad used to have a Fender Strat also, bought it in either the 50s or 60s, but I don't know what happened to it, it wasn't there when I had to clear my parents house out after they died. I'll always wonder what happened to that old guitar and a few others he had, like an old acoustic Gibson he used to love to pick on (it wasn't there either). I also have my Ibanez acoustic that my dad gave me for Christmas in 2003, and the little Gibson he bought me when I was a kid, back in the '70s. It's a little guy, but he sure is cute, and looks like a miniature of the real thing. lol. Anyway, take care my friend.