Gibson Faces Bankruptcy, Future Of The Iconic Brand In Doubt


Gibson Brands and instruments, which started out as Gibson Guitars, synonymous with music, especially classic rock and metal for 116 years. is facing dire times and potential bankruptcy. They have had a series of financial setbacks that may force a sale or dissolution of the iconic brand. The brand also has an electronics arm and Baldwin Pianos.

According to Digital Music news, Gibson still pulls annual revenues north of $1 billion. However, their revenue does not come close to covering their loan debts, and sales have been falling each successive year. The Nashville based brands’ CFO Bill Lawrence recently left the company after less than a year on the job, and just six months before $375 million of senior secured notes will mature…On top of that, another $145 million in bank loans will come due immediately if those notes, issued in 2013, are not refinanced by July 23rd, 2018.

In a recent statement they announced:

Gibson Brands, Inc. today announced that the company made a $16.6 million coupon payment to holders of its $375 million, 8.875% senior secured notes due 2018.”

Less than six months out from those crucial deadlines, the prospects for an orderly refinancing are slim. Gibson has hired investment bank, Jefferies, to help with the refi.

We’ll continue to track this story as it develops. In the meantime, enjoy some amazing Gibson users do what they do with a Gibson.