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SurfGuitar101 Forums » Gear »

Permalink Gibson reportedly facing bankruptcy

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When factory is closed real folk with real families dealing with real every day issues get hurt. You can argue about management, products, mistakes but for me, I'll be lighting candles for the real victims on Sunday. Sad.

Happy Sunsets!

tahitijack wrote:

When factory is closed real folk with real families dealing with real every day issues get hurt. You can argue about management, products, mistakes but for me, I'll be lighting candles for the real victims on Sunday. Sad.

They aren't closing any factories. They are moving locations. In Memphis, for example, the factory is located two blocks away from a basketball arena and a few blocks away from Beale Street. It has become very expensive property as that area has been redeveloped after the arena went in. By moving to a different location in the Memphis they don't have to cut $17 million worth of jobs.

I'd be curious what the thought was when they created the three separate factories in Bozeman, Memphis, and Nashville. Let's nearly triple our rent, hire more employees than we need, need more distribution centers, and have more equipment than we need.

Guitar playing in general is down; I really don't think as many kids are picking it up. Another demographic problem happens when an old owner/collector passes away and a vintage piece ends up at an auction or music shop wall. These are durable goods, they don't end up in landfills. The CEO made some bad moves. He did have a good point that buying a guitar at a warehouse like Guitar Center isn't that pleasant, that the consumer experience could be a lot better. I see that as a SMALL part of the issue.10 year old kids looking to play music aren't getting Daddy to break into the trust fund for a Gibson.

They already started laying off staff, I read. Sad.
At least, they're coming up with solutions! This is gold, believe Henry. Listening to the customer, that's what it's all about.

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It breaks my heart, really does. Just this milking of the logo, the blatant ruining of a heritage (that I got nothing to do with expect as a music fan). Fender does that too to a degree (like any big company would), but got a lot of good things going for them otherwise.
If you have B.B. king, Bob Marley, Angus and Slash on your side (let's take just these 4), I don't know how can you lose in the capitalist arena.

OTH:
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Shock

As an outsider, IMHO, Gibsons and Harleys, America should cherish these things. It's some of the best parts of your culture.

Last edited: Mar 12, 2018 12:44:11

I think Jake Dobner pretty much nailed it down. This is the part of the story when the venture capital people start taking a mean look at what's on the table. When they get their hooks into a company, any company, the goal is to make that entity as profitable as possible as quickly as possible, fallout be damned, and then flip it.

I like that J50 and love the Olive Green ES guitars they are making. That Epiphone is the best of them all though!

JakeDobner wrote:

That Epiphone is the best of them all though!

Right! WTH I like JB now. Seriously nice guitar.

Last edited: Mar 13, 2018 00:07:59

I've always been underwhelmed by Gibson guitars, but this is sad story of mis-management bordering on incompetence. My buddy is big on Gibsons (SG's normally), and with a windfall recently he bought a ... Gretsch.

Comparing Fender to Gibson is always interesting. Gibson make expensive guitars. So do Fender, but Fender make amplifiers, strings, straps, leads, picks, all the little stuff that keeps cash coming in. And Fender stuff is pretty reliable.

My bass player was telling me they went into debt to buy Phillips? An electronics company? He was in a large guitar shop in Bristol at the weekend - not a single Gibson guitar in the place "We don't sell them any more". He also tells of guitarists receiving their signature models (as in, the signature guy himself) and the pickups are wired wrong. That's American quality, and once the faith in that goes, then it's hard to justify the extra cost of a USA guitar.

I expect the name Gibson will prevail. And older Gibsons even the crap ones will appreciate in value.

http://thewaterboarders.bandcamp.com/

-

Last edited: Feb 02, 2024 12:57:05

Gibson still makes a good guitar and have made great guitars in the past. They have a very wide range of models they have offered that appeal to many different players.

Gibson makes picks, strings, offers straps...

And Gibson still makes a great guitar, I will say. I played some really nice stuff a few weeks back from 2017. An ES-345 and a J-200.

I will never ever buy a new Gibson(too close in price to vintage). But I've owned a slew of vintage Gibsons and they are a great alternative to Fender.

I've owned half a dozen Gibson's, some not so hot, most good and few were great including the Midtown I have now. I see the current owner as the problem, not the guitars, he's raised the prices to the point where there near to the price of a Paul Reed Smith or Tom Anderson. As noted kids are not taking up the guitar like they used to and a whole generation has grown up with no appreciation for live music. I don't go in music stores all that much but in this area the stores are hurting for new students, a bad sign to say the least.

Ariel wrote:

As an outsider, IMHO, Gibsons and Harleys, America should cherish these things. It's some of the best parts of your culture.

Ariel,

Those things specifically are part of the baby boomer culture, and are fading significantly.

Like a band that had a couple hits 50 years ago, they can keep on trucking -- as long as everyone who was a teen back then is still around. Once they start dying off, it's all over.

I can buy into Raito's logic; sad but true. I bought my Firebird in a mid-life crisis 30 years ago. I love it, had it slightly refurbished once about 4 years ago and it is a magnificent guitar. Today the kids see it and actually ask if it was a custom order or make the other comment: "gee--that looks sooooooo old." I just shut up and think to myself--'you should be so lucky.'

Well gang,
Gibson isn't' facing bankruptcy anymore. They actually filed for bankruptcy today. Hopefully under the re-org, the CEO clown who led them down this path gets a thumbs down and a "get out" by the board.
I love it when companies lose focus on what they do and diversify into areas they know absolutely squat about. The success rate on that does not have good odds.
So - I hope old Gibby comes out of this with some better management or some enterprising group buys their inventory and gets back to basics -like making guitars players want.
J Mo'

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I remember when Mosrite went out of business. The music stores wouldn't touch their product because there was no real warranty from the (gone). It left the Ventures in quite a spot. Some of Mosrite's guitars were just tossed together from left over stock. Who would buy a new Gibson guitar now? You won't know what quality control is in place; it's usually the first thing to go. Figure a downward spiral in sales until this all gets shaken out. Could be a while.
There's still lots of guitar makers out there now - unlike the comparatively few when Mosrite folded several times. At this point, Gibson may have trouble getting raw material (like wood) if they've already stiffed some suppliers. Credit just evaporates when you state you won't be paying your bills for a time.
Not looking too good..
J Mo'

So, I suppose "Pre-bankruptcy" will be to used Gibsons what be what "Pre-CBS" is to old Fenders someday.

For the record, I have been a dyed-in-the-wool Fender devotee for over a half century but I also have four Gibsons in the arsenal - 3 electrics and 1 acoustic - and each one is a stellar, finely crafted and beautiful sounding instrument. I will never part with any of them a long as I am able to play.

Jack
aka WoodyJ

The Mariners (1964-68, 1996-2005)
The Hula Hounds (1996-current)
The X-Rays (1997-2004)
The Surge! (2004, 2011-2012)
Various non-surf bands that actually made money
(1978-1990)

WoodyJ
"So, I suppose "Pre-bankruptcy" will be to used Gibsons what be what "Pre-CBS" is to old Fenders someday."

Yes - That's how a Vintage Guitar Market can start and grow. It's the old "they don't make 'em like that, anymore" concept. I have several Gibsons from the 1960s. They should go up in value, assuming people keep playing the guitar. At the very least, the wood is a hell of a lot better.
J Mo'

I'm going to take a different tack here. IMO, Henry J was the problem at Gibson and as I understand it, he's no longer going to be CEO. He has a one year consultancy to smooth the transition, but you can bet that he won't be making crucial decisions. The creditors were not about to renegotiate their interests with Henry calling the shots.

Here's my take on the situation. Gibson is a badly damaged company, but a beloved brand name. If they seek to reclaim the brand's former glory, by offering quality and value, they will be on the right track. Next, they need to rebuild their dealer network by allowing smaller dealers to carry their line without unreasonable "re-qualification" requirements and without trying to call the shots at the dealer's stores. This would do one other thing, it would make them less dependent upon GC, which could easily find itself in as much trouble as Gibson is now and whom, to my understand, owes Gibson a pretty penny.

If they take the nonsense out the product line and concentrate on offering good guitars at reasonable prices, that should help a lot. It used to be that the Gibson catalogue was predictable and made sense. If they return to that, they might find that buyers respond. Frankly, special this and that just doesn't do it for me. I want to be able to walk into a store and know what each model means without a bunch of artificial pressure from limited production runs, etc.

Of course, QC is essential and this starts with worker morale. When people felt like they were constantly on a bubble, they were not likely to be doing their best. Treat employees with respect and listen to their concerns and these same employees will respond by wanting to put their best foot forward.

Gibson could have a bright future from this point onward.

The artist formerly known as: Synchro

When Surf Guitar is outlawed only outlaws will play Surf Guitar.

synchro wrote:

Gibson could have a bright future from this point onward.

Or they could just end up asset stripped until someone buys the name.

Fingers crossed for satisfactory outcome

http://thewaterboarders.bandcamp.com/

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