The maker of a cherished rock mainstay is seeking bankruptcy protection after diversification led to ‘devastating’ financial fall

This article is more than 1 year old

This article is more than 1 year old

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Gibson Brands, the makers of rock’s favourite Les Paul, SG and Flying V guitars, has filed for bankruptcy protection citing a “devastating” financial fall after its investments in consumer electronic brands failed to pay off. READ MORE: 4 of 5 autographed guitars stolen from Edmonton charity found

Gibson guitars have been esteemed by generations of guitar legends. NASHVILLE, Tenn. (AP) — Gibson guitars have been such a fixture in music history that Chuck Berry was laid to rest with his, B.B. David Bowie favoured the 1989 Gibson L4 when he fronted Tin Machine whereas Slash is another fan. Slash swears by them. A pre-negotiated reorganization plan filed Tuesday, May 1, 2018, will allow Gibson Brands Inc. to continue operations with $135 million in financing from lenders.. (Photo by Owen Sweeney/Invision/AP, File) FILE – In this June 17, 2016, file photo, Henry Juszkiewicz, CEO of Gibson Brands, poses for a portrait with a Gibson Custom L-5 guitar during the official opening of the European hub of Gibson Brands at the A’dam Tower in Amsterdam, Netherlands. Gibson, founded in 1894 and based in Nashville, Tennessee, has the top market share in premium electric guitars. The Nashville-based company, which was founded in 1894, said it planned to continue in the business of designing, building and selling musical instruments and equipment, including brands such as Wurlitzer, Dobro and Epiphone, but it would close its arm that makes Philips-branded headphones and other electronic accessories. Gibson, whose legendary brands include Les Paul and SG, has been suffering under $500 million in debt linked to the acquisition of its consumer electronics business overseas, where sales have been in sharp decline.
United States guitar manufacturer Gibson files for bankruptcy protection.