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Post subject: Gibson files for Chapter 11 bankruptcy
Posted: Tue May 01, 2018 8:10 am
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Hot off the wire! All the major news services are reporting that Gibson has filed for Chapter 11 bankruptcy protection. Hopefully the company will continue unscathed.


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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Tue May 01, 2018 9:13 am
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The reports seem to be verifiable this time around. Thanks, for the heads up, CoronadoII.

https://www.bloomberg.com/news/articles ... r-business

Unfortunately, there are bound to be winners and losers. I got caught with a music store bankruptcy which caused me to lose some gear in exchange.

I only hope that those who have outstanding orders or repairs don’t get burnt.

Perhaps, some good will come to prospective customers. My thoughts go out to the staff who of no fault of their own will find themselves as others have because of changing trends and poor management.

One can only hope that a once great guitar manufacturer will correct itself.

But, it is also reported that the bankruptcy restructuring is not assured until a Federal judge signs off on it. Unsecured creditors (estimated at 31%) could object and ask for liquidation.

Should be interesting, but considering the jobs and deals at stake, I don’t think it will take long for the final decision.

FSB

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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Tue May 01, 2018 10:36 am
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Kindly hope the employees at the Nashville plant will not lose their job and the company finally finds a buyer to keep the business alive. Guitar giants such as Gibson never die.


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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Tue May 01, 2018 11:59 am
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chromeface wrote:
Kindly hope the employees at the Nashville plant will not lose their job and the company finally finds a buyer to keep the business alive. Guitar giants such as Gibson never die.
Maybe Epiphone's operation can help. Reportedly, a few Gibson employees, along with others, have said (questionably) some areas of Epiphone are doing a better job than today's Gibson.

Gibson's largest business is electronics - not guitars. Apple's fortune is not based on iphones, laptops, or desktops. Fast food giants' business is prime real estate. Soft drink manufacturers look to water. Alternative operations are fine as long as they are successful. Maybe, there's a lesson to be learned. I think Gibson knows this, but when they rolled the dice they got snake eyes. :oops:

Fender? Sorry Gibby. The spaghetti logo is taken. :wink:
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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Tue May 01, 2018 12:33 pm
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Don't forget, if chapter 11 is allowed, the payroll get's payed first before the other outstanding bills do.

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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Wed May 02, 2018 12:22 am
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Yea... Yea... All the Young Turks were gonna take Gibson from Kalamazoo in '85, Bust The Union, and return to profitability in Memphis/Nashville.

Toured the Gibson Plant in Memphis in '15... saw better, more efficient manufacturing in the Yugo Plant in Belgrade in '87 !! Couldn't believe the downtime, waste and sloppiness they had going !

But mostly, I noticed a distinct Lack of Passion amongst the workers... virtual AIDS in manufacturing !!

'Natural Selection' takes place in the Business World too !! Sobeit !! There isn't a modern Gibson alive today that Page, BB King, Dwayne Allman etc. would play without getting paid or having it so customized that it is unrecognizable from what you can buy in a shop !!

That doesn't diminish Gibson's Legacy... it ENDS it !! Right here !!

Makes my Heritage H-535 w/ Seth Lovers (Marv designed... and signed ) all the more special !!!

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225 Parsons Street, Kalamazoo, MI... Baby !!!

cheers !!

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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Wed May 02, 2018 3:24 am
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Anyone remembering Kramer's collapse in the early 1990s? Gibson owns the brand since 1997.....


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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Wed May 02, 2018 3:53 am
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There is one news clip that speaks about Bozeman Montana, that clip claims that at least the acoustic guitar division is not affected.

I you check the gibson forum, some of the customer service guys that post there seem to be saying things will continue, at least for now.

I honestly don't believe this is the end of the company, for sure some bad times, but hopefully they emerge stronger. They gotta shed the acquisitions that got them this deep in debt. Henry's "Gibson Lifestyle" plans have been a failure.

Best of luck to all who work there. Being in IT for many years, and having gone thru these kind of struggles, I know it's not easy to stay motivated.


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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Wed May 02, 2018 6:13 am
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You know, things come and go, although Gibson as a brand has been around for 116 years, and well established, so I'm sure it might continue in name in some form or other, even if it tanks in it's current configuration. I have a feeling that the CEO and whoever else is the big wigs there will probably get chopped, though. That usually happens with these sort of things.

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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Wed May 02, 2018 5:20 pm
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I agree that Gibson needs to move as far away from Henry as possible and as soon as possible. I just think it's wrong to reward him for ruining the company, instead of paying down the debt that he created. He deserves ZERO $$$

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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Wed May 02, 2018 8:52 pm
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If Gibson finally finds a buyer one of his first priorities is to start production of Gibson-brand instruments overseas to reduce costs and make new profits. Many major US guitar-making companies adopted this strategy and I wonder why Gibson didn't followed it.


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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Wed May 02, 2018 9:06 pm
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chromeface wrote:
If Gibson finally finds a buyer one of his first priorities is to start production of Gibson-brand instruments overseas to reduce costs and make new profits. Many major US guitar-making companies adopted this strategy and I wonder why Gibson didn't followed it.

Exactly.
Fender is making Gretsch primarily (if not 100%) in Japan now.

Fender taking over Gretsch, EVH, Jackson, and Charvel made perfect sense for them. None of those companies really put any direct competitive pressure on Fender.
When people think Fender, they don't think Coronado or Starcaster. When people think Gretsch, they think rockabilly and country hollowbody.
It really was a perfect marriage and captured a solid market share for FMIC.

Gibson? That's going to be a tough sell. On the one hand, if Fender were to buy Gibson, it would put them in a solid position in the acoustic market.
OTOH, on the electric lineup, the Gibson name would be in direct competition with nearly every 6-string model in the Gretsch lineup... Bigsby and tone control arrangement aside.

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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Thu May 03, 2018 12:57 am
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Boutique makers such as Suhr and Tyler also put a deal of effort to produce affordable versions of ther popular models overseas. In the case of Suhr this move didn't last long as the Rasmus line was taken out of production a couple of months after the series officially debuted in 2013.


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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Thu May 03, 2018 2:51 am
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I guess we could debate all the possible reasons etc., but I think it's sad and can only hope they recover but with stronger management in place, security for staff and return to top quality - at more reasonable prices.
It saddens me to hear (apparently) staff are suffering yet the head of Gibson gets retained at full pay whilst things get sorted out.
Glad Les Paul himself is not here today to see this. RIP LP.
P.S. I heard a rumour that a leading guitarist was interested in taking them over - anyone hear anything in this regard? How about some guesses - Slash, Joe Walsh to name a few?

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Post subject: Re: Gibson files for Chapter 11 bankruptcy
Posted: Thu May 03, 2018 6:58 am
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Also Hahn in NY.

https://www.hahnguitars.com/model-c/

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