If there is a guitar brand considered to be one of the most ubiquitous, it’s definitely Gibson. Unfortunately, the legendary instrument maker and musical brand is facing financial issues, as it announced yesterday it is filing for chapter 11 bankruptcy.
“Over the past 12 months, we have made substantial strides through an operational restructuring. We have sold non-core brands, increased earnings, and reduced working capital demands,” said Gibson’s CEO Henry Juszkiewicz in a statement.
Business will go on as usual during the bankruptcy proceedings, “thanks to agreements it has reached with shareholders and noteholders,” writes Rolling Stone.
According to Rolling Stone, Gibson has been in trouble for a while. Annual revenue for the company reportedly fell half a billion dollars over the past three years, compounded with outstanding debts between $100 to $500 million, owing money to more than 26 separate companies.
This report comes on the heels of the news that Guitar Center is also struggling. Rolling Stone reports that Fender, another legendary guitar brand, is also in debt.
This article was first published on Your EDM. Source: Guitar Brand Gibson Files For Bankruptcy
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