Gibson Files For Bankruptcy, Will Focus Efforts Only On Instruments In The Future
Gibson's name has been in the news for quite some time now, mainly regarding the fact that they were teetering on the brink of serious financial issues. Now the brand has officially filed for Chapter 11 bankruptcy, which NPR points out doesn't mean they're completely doomed, but instead is "a way for companies that can't pay their bills to not die."
The New York Post adds that the company has reached a restructuring agreement with senior secured noteholders to pay back their bank loans, which the Chapter 11 filing reveals is around $500 million. The restructuring agreement provides Gibson Brands with $135 million in funding.
Gibson Restructuring Chief Brian Fox offered a short and obvious comment, saying "[The] business has not been successful, while Chairman and Chief Executive Henry Juszkiewicz suggested focusing Gibson may save it in the long term.
Th restructuring means Gibson will focus mainly on its instruments because that business is "unburdened by the challenges experienced by [the company's] separate, primarily non-U.S., consumer electronics business." These consumer electronics businesses include KRK, Cerwin Vega, and Stanton, and it's worth noting that Gibson also has a stake in TEAC.