SAN FRANCISCO • Can world-famous guitar maker Gibson, whose devices have been performed by the likes of John Lennon and Elvis Presley, survive?
Fans are fretting and beginning to sing the blues after news emerged that the company is going through critical monetary issues that threaten its very existence.
The company – based mostly in Nashville, Tennessee since 1894 – on Monday introduced in a brand new monetary director, Mr Benson Woo, to attempt to rescue the ailing group.
Gibson Brands, which additionally sells audio programs for each professionals and most people, is working with an funding financial institution to arrange a debt refinancing plan, the company stated in a press release.
The group has a US$375 million (S$493 million) debt fee due in early August, the Nashville Post reported.
“While the musical instrument and pro audio segments have been profitable and growing, they are still below the level of success we saw several years ago,” chief govt Henry Juszkiewicz stated within the assertion.
He added that the company, as a part of a broad assessment of its business technique, was persevering with to streamline its Philips model shopper audio business whereas additionally eliminating a few of the underperforming merchandise.
He stated Gibson expects this technique will lead “to the best financial results the company has seen in its history within the next year” – with full compensation of company debt “within several years”.
Gibson purchased Philips, a Dutch leisure model, in 2014 for US$135 million.
Gibson produces one of the prestigious guitar fashions within the world, the Les Paul.
Among the celebrities who have performed Gibson devices are bluesman B.B. King and rockers – the Rolling Stones’ Keith Richards and Jimmy Page of Led Zeppelin.
In 2016, a Gibson Dove – a flat prime, steel-string acoustic guitar that Presley’s father had given him in 1969 – bought at public sale for the wholesome sum of US$334,000.
A yr earlier, one in every of Lennon’s favorite guitars – he used it to compose songs comparable to All My Loving and She Loves You – introduced in an much more spectacular US$2.four million.
But provided that some pundits have pointed to a diminished curiosity in guitars because the music developments within the United States lean extra in direction of rap and hip hop, Gibson will nonetheless have its work reduce out even when the business revamp proves sound.