Gibson Brands has made iconic guitars played by the likes of Elvis, B.B. King and Jimmy Page. On May 1st, Gibson filed for Chapter 11 bankruptcy in Delaware. Here’s a look at the details behind Gibson’s decision and what it could mean for the future of the company.
Gibson is Not Doomed to Fail
Contrary to popular belief, filing for Chapter 11 protection does not mean a company is on its way under. It is simply a way for companies to survive through rough patches when they’re struggling financially. Gibson currently has $500 million in debt. The company filing for bankruptcy was widely anticipated. Their decision to file also doesn’t mean that rock is dead, although other guitar companies, like Fender and Guitar Center, have been struggling, too.
“Over the past 12 months, we have made substantial strides through an operational restructuring. We have sold non-core brands, increased earnings, and reduced working capital demands,” said Gibson’s CEO of 3 decades, Henry Juszkiewicz, in a statement to the Rolling Stone.
Gibson’s Future Plans
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