Gibson Guitars Is About to Go Belly Up: Report
Iconic guitar-maker faces loan payments as creditors and investors get antsy.
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Gibson Brands, the iconic Nashville-based guitar-maker, is on the brink of bankruptcy, with creditors and bondholders fretting over the future of the company and CEO Henry Juszkiewicz likely on his way out, according to a report by the Nashville Post.
With its instantly recognizable guitars and storied role in the history of blues, country and rock music, Gibson remains a solid brand, with annual revenues reportedly topping $1 billion. But the Post reports that behind the scenes, the company has been badly damaged by poor decision-making and “operational problem[s]”. CFO Bill Lawrence parted ways with the company in 2017 after less than a year on the job, and several critical loan deadlines are looming. Gibson recently received a “lifeline” infusion of capital from GSO Capital Partners, and has brought on an investment bank to aid a refinancing effort. The Post quotes a senior credit officer at Moody’s Investors Service who says Juszkiewicz must find a way either to refinance the debt or go to bankruptcy court, saying the company is “running out of time—rapidly.”