Yahoo Finance Gibson Guitars Files for Bankruptcy Protection
Gibson Brands, Inc. has filed for bankruptcy protection. The iconic guitar maker filed for Chapter 11 bankruptcy protection earlier today, as Bloomberg reports, with a “change of control” transaction to shift ownership of the company from current stockholders (including CEO Henry Juszkiewicz) to its lenders (which include investment firms like Melody Capital Partners and Silver Point Capital).
The decision follows years of financial challenges facing the company, with the company owing much of that to its ill-fated “consumer electronics” division Gibson Innovations. That division was established in 2014 following Gibson’s acquisition of WOOX Innovations, the audio, video, multimedia, and accessories business of Philips. That division will be liquidated, according to Bloomberg, with Gibson refocusing its efforts on its core musical instruments business. As Variety notes, Juszkiewicz says the restructuring “will be virtually invisible to customers, all of whom can continue to rely on Gibson to provide unparalleled products and customer service.”
Gibson was founded in 1903 in Kalamazoo, Michigan. It recently moved out of its Nashville offices, where it had operated since the mid 1980s. Several of their guitar models, including the Les Paul, SG, ES-335, and others are ubiquitous in rock and popular culture.
