Published: Wed, May 02, 2018
Finance | By Kristine Clayton

Gibson files for bankruptcy, legendary guitar maker to operate while reorganizing

Gibson files for bankruptcy, legendary guitar maker to operate while reorganizing

Tennessee-based Gibson Brands, which makes Gibson guitars & Baldwin pianos, filed for Chapter 11 bankruptcy, amid what it called a "devastating financial fall", according to USA Today.

A change in control will be undergone where current stockholders like CEO, Henry Juszkiewicz, will be replaced.

The maker of the storied Gibson Les Paul guitar, which has been in business since 1894, said it expects to keep operating while it reorganizes around its core businesses. Gibson plans to wind down its Gibson's Innovations business, which is largely outside of the U.S.

The company issued an official statement this morning regarding its decision to enter bankruptcy protection. As Variety notes, Juszkiewicz says the restructuring "will be virtually invisible to customers, all of whom can continue to rely on Gibson to provide unparalleled products and customer service".

The company also owns brands including Epiphone, Wurlitzer and Slingerland.

The company, which filed for chapter 11 in U.S. Bankruptcy Court in DE, said it will continue to operate during the proceedings as it focuses on reorganizing around its core businesses. Its lenders woll advance the company $135 million according to Bloomberg.

The company has already sold off some non-core brands, acquisitions that contributed to its debt load.

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