Gibson Files for Chapter 11 Bankruptcy
 

Kinda sad but they've been running the company into the ground for years (lots of quality issues, frivolous purchases). Hopefully they can pull their heads outta their asses and successfully reorganize.

https://www.npr.org/sections/thereco...tcy-protection

https://scontent-dfw5-1.xx.fbcdn.net...5e&oe=5B98F62E

:1orglaugh :1orglaugh . . .

Kids don't play guitars anymore. There is an app for every instrument sadly to say.

Maybe they will cut the CEO loose or a buyer will come and make them affordable for MUSICIANS again and not just collectors and old guys like me! :)

The Chinese will make a bid for them :upsidedow

Too much electronic shit now. Synthesizers started the downward spiral. Pre-recorded music for concerts, no Eddie Van Halen, Joe Satriani, Neil Schon or really uniquely-talented guitarists around.

ZZTop promoted them heavily but these days it's not worth paying big bucks for the small payback.

I'm trying to remember the guy who had custom Gibsons in videos and concert in the late eighties. Metal-hair, blonde, Aqua Net poof ... Not from Styx or Ratt but looked like that with the hair, tight leather pants, eyeliner and leather wrist bands.

I had no idea Neil Schon would be on such a list.....

Yes.. he’s quite remarkable

He did okay with soft rock band Journey, but I saw him open for The Cars in '88 or '89. Figured I'd just relax but he blew everyone away. Six-and-twelve string, reminded me of Clapton though not quite as good! His fingers flew over frets, he ran his fingers up and down fast and good. People were saying he wasted his talent with Journey. He wasn't extremely talented but could seriously play guitar.

I remember that time because a friend dragged me to see Yngwie Malmstein (spelling may be off). I thought it would pass the time until a decent band came on. I was blown away by this unknown guy. He opened for Ted Nugent later that year and was just as strong.

I know, mist won't know these artists/musicians. The olden days of rock!

You just matched the description of every other guitar player on MTV but you're probably talking about Randy Rhoads.

Not surprising that this happened.
In 2011 the Obama admin had agents raid their factory a second time over ebony from Madagascar that is used for the fret boards.
Gibson's chief executive was a major Republican Party contributor...and Obama's people went after Gibson while not bothering other guitar makers using the same exact woods (which have always been used by the way)

I remember it was all in the news at the time. What a mess.
https://www.investors.com/politics/e...-intimidation/

That alone cost them a fortune in lost materials, legal fees, and a $300,000 fine that Eric Holder and the Justice Dept. nailed them with.

Totally disgraceful how the Justice Dept. became weaponized for political reasons. :(

Anyway, I've owned a lot of Gibson Les Pauls over the years. Still have the first one I owned which I bought brand new in 1978. And my current main guitar I'm using at gigs is a 2017 Les Paul Standard High Performance model.

I hope that after they restructure through bankruptcy proceedings that they are able to be profitable once more.
Great American company and great artists and luthiers at Gibson.

They need more leadership in the finance dept

Fender has been manufacturing their guitars in Baja California, Mexico, for many years now. Likely cutting their labor expenses by 85%.

Ah look even this is Obama's fault!

Lordy, lordy when will it end..

You think people will still buy if it goes to them ? :2 cents:

Guitar use in popular music is at an all time low.

Thanks Obama...

Guitar business and corporate business products are selling very well. They should have stuck to that core.

Bummer, their SG is a great guitar

Has nothing to do with the $500 million in debt they acquired. And the poor acquisitions they made.

EXACTLY!
:thumbsup

Noo noo it was because Obama... Robbie says so..

No. He was great and I remember the day he died. I had to visit the grandparents near Boston. Walk in and grandma asks if we heard that “Donny Osmond died in a plane crash.” Took a while to explain about the bus, plane and “Osbourne” and that sweet little Donny was fine.

I’ll remember it eventually. He was an MTV favorite.

Randy. What a loss of talent and he hadn’t hit his peak yet.

I don't think you understand how this works. They are not for sale or up for auction.

You think it's Obama's fault they were knowingly importing illegal ebony from Madagascar, after being advised it was illegal multiple times before finally being raided a year later, pled guilty to the offenses and paid massive fines. You are a fucking idiot.

Chapter 11 allows companies to reorganize their debt and pay their debtors over time. It does not negate investors coming in and taking over by paying off debts and thereby taking control of the company, given all parties full agreement of course.

I can tell you that Fender and Gibson both have plenty of cheap guitars (Fender Squires, Gibson Epiphones) that play well. But...the REAL Gibson and Fenders are made in the USA.

I'm not talking about the $700 cheap Les Paul or the $700 cheap Stratocaster.

My latest Les Paul cost $3,700 and was built in Nashville. Everything in it, right down to the CTS pots and the braided wiring was made in the USA.
And my Custom Shop Jeff Beck Signature Strat cost me $4,200 in 2006. It's built by hand in the Fender Custom Shop right here in the USA.

So yeah...plenty of cheap to mid-range guitars are made overseas...but the REAL pro models are not.

True, but then again Electronic Music lets people play a wider range of sounds, and assemble entire songs on their laptop computers. I like playing guitar, but alot of people, teens in particular, would see only limited potential in a guitar vs using a computer.



I think it's unfair to blame Obama for this. Gibson broke the law. They violated the Macey Act that had already been in place for 3 years beforehand that outlawed importing wood harvested and illegally exported under another country's laws in 2011. It was an elaborate setup that took some planning, and they got busted by the Department of Justice for it, and were fined $300k for breaking the law a $50k donation to the National Fish and Wildlife Foundation. It's completely their fault, and I think, a pretty fair fine.

All that drivel bullshit then you finally tell the truth, Gibson's are made in China. A simple Google tells you this, yet you lie, then backtrack. Sad

You need to lean how to DEAL... You are OVER PAYING for your axes... Remember, paying more for your gear does not make you sound or play any better. Jusr ask Eddie Van Halen... Less than 200 bucks in the Frankenstrat and its one of the baddest guitars on the planet! :) :thumbsup

There is no way to "deal" on a Fender Custom Shop Jeff Beck Strat.
https://www.sweetwater.com/store/det...-olympic-white

These are not something you can "deal" on when you buy them brand new. I look at music stores all over the country before I buy something. Been doing this a long, long time.
Go ahead...look around the world and see if you can find a handmade custom shop Fender Strat like that one at a substantially lower price brand new. You won't.

As far as building a Frankenstrat...of course you can build a guitar on a budget...but that guitar wasn't what was badass, it was what Eddie's fingers do on that guitar.
I'm pretty confident that he can take any guitar and make it sound good. It's in the fingers.

And yet....other guitar manufacturers were not bothered at all.
THAT is the point you are missing Mark.
Gibson's CEO was an outspoken Republican Party donor. And he was targeted for that reason.
Since you didn't take time to read:

"In one raid, the feds hauled away ebony fingerboards, alleging they violated Madagascar law. Gibson responded by obtaining the sworn word of the African island's government that no law had been broken.

In another raid, the feds found materials imported from India, claiming they too moved across the globe in violation of Indian law. Gibson's response was that the feds had simply misinterpreted Indian law.

Interestingly, one of Gibson's leading competitors is C.F. Martin & Co. According to C.F. Martin's catalog, several of their guitars contain "East Indian Rosewood," which is the exact same wood in at least 10 of Gibson's guitars. So why were they not also raided and their inventory of foreign wood seized?

Grossly underreported at the time was the fact that Gibson's chief executive, Henry Juszkiewicz, contributed to Republican politicians. Recent donations have included $2,000 to Rep. Marsha Blackburn, R-Tenn., and $1,500 to Sen. Lamar Alexander, R-Tenn.

By contrast, Chris Martin IV, the Martin & Co. CEO, is a long-time Democratic supporter, with $35,400 in contributions to Democratic candidates and the Democratic National Committee over the past couple of election cycles."

You overpaid by thousands for a guitar from a now bankrupt company that was having their guitars made in China to save money. You got ripped off. Deal with it.

If you CALL them they will probably make you an even better deal...

https://reverb.com/item/10540260-fen...mpic-white-767

I have been doing this a VERY long time as well... :) :thumbsup

I've always been a little bit shy of buying stuff off of Reverb. Hell, I never bought a guitar online until 2002...before that I always went into music stores and played an instrument.

I'm not sure how Wilcutt Guitars are able to offer that at that price. The only thing I can figure is that maybe they've had it a while and can't move it??? Anyway, good find on that.

I prefer to deal with Sweetwater because they are really, really good at getting the "cream of the crop" on most instruments from the manufacturer (and also good at getting electronics and amps in the first run...I got my Helix in Oct. 2015 as one of the first in the country when they came out).
And I always know that if anything is wrong that I can pick up the phone to my guy at Sweetwater and get it made right.

You have to do what you have to do sometimes :pimp

Again, I don't think you know how this works. Gibson is not for sale by it's debtors. They made a deal before filing for Chapter 11.

Did you see how many Chinese companies were on the Chapter 11 filing? Wow :1orglaugh

Dear Friends:

Yesterday, we made a significant announcement that marks the next phase of Gibson’s long and storied history. We are re-focusing the Company on the manufacturing of world-class, iconic musical instruments and the continued development of the global Gibson brand, by reorganizing around its core businesses in the Musical Instruments segment. Gibson has reached a Restructuring Support Agreement with its majority stakeholders that clears the way for the continued financing and operations of the musical instruments business.

To implement the agreement, the Company filed today to reorganize under Chapter 11 of the U.S. Bankruptcy Code in Wilmington, Delaware. This will allow our Company to continue to design, build, sell and manufacture Gibson’s legendary guitars and instruments without interruption.

We are making every precaution to ensure normal operations for our valued customers. You will very likely not notice any change at all. There will be no change to inventory, pricing or quality of our guitars, musical instruments and Pro Audio. We intend to focus the same amount of time, money and energy in designing and building the best guitars, instruments and Pro Audio equipment that Gibson is known for.

As the Company moves through this process, which we will work to conclude as quickly as possible, there are several important facts you should know and understand about the Chapter 11 process:

• Gibson Brands is not going out of business. The legal process is being used to implement a reorganization of the Musical Instruments division, not liquidation.
• The filings do not change pricing, inventory, ordering or delivery timing of our guitars, musical instruments and Pro Audio equipment.
• There will be no change to the quality of service and support our customers have come to expect from us.
• There will be no changes to our warranty and customer service policies.

While we believe we have put all the right pieces in place to support normal business operations, this announcement may raise questions for you. Please be assured that our commitment to quality products, warranties and customer-service policies are not changing.

Sincerely,

Henry Juszkiewicz
Chairman and CEO of Gibson Brands