Gibson are synonymous with guitars after a 100+ year legacy, so their bankruptcy came as a shock. But it looks like they might crawl out from it yet.
Back in May of this year we were shocked to learn Gibson had filed for bankruptcy after having helped define guitars since the company launched in 1902. The filing came after a series of asset sales and restructuring in an attempt to recuperate years of evidently poor business choices that culminated in $60 million of debt. But they may rise from the ashes once more.
Gibson filed for a Chapter 11 bankruptcy which means that their operations are protected, allowing them to attempt to turn business around and financially re-emerge from their debt. Gibson’s plan of action to climb back out of their losses is to take the company back to it’s roots – making solid, quality guitars, including a s**tload of Les Pauls.
Last week Gibson unveiled their first range of guitars since they filed for bankruptcy, with a whole slew new guitars planned from the company for 2019. The new guitars won’t be cheap but they see the return of Gibson’s ability to make some of the best quality guitars in the world.
Amongst the new range are updated Les Paul Standards, SG Standards, Flying Vs, Explorers, Firebirds, and that’s just their solid-body electrics. There is also an entire new range of semi-hollow body electrics and acoustic guitars too. You can browse through the whole new range here: www.gibson.com/Products
Paperwork filed in the US Bankruptcy Court in Delaware last week suggests that an agreement with various creditors is being arranged and is close to finalising. The deal would see some of Gibson’s chief creditors like Blackstone and Philips Electronic accept reduced paybacks for their outstanding loans to Gibson. The companies could then benefit further from the potential reborn success of Gibson.