Gibson Guitar (116 Years In Business) Faces Possible Bankruptcy.
Gibson Guitar started in 1902, and has been interwoven into the musical life of America ever since.
Back in 1952, the company produced its first signature Les Paul, one of the most famous guitar series of all time. The rest, as they say, is history. But that storied history is making the present situation harder to stomach.
Just recently, Gibson sold its ownership of a former Baldwin Piano warehouse for $6.4 million. Now, the guitar maker is trying to offload an even bigger Nashville property: the Valley Arts building, located on Church Street. The selloff is expected to draw $11 million. Both payments are likely to evaporate almost instantly to service a growing debt tranche.
It is rumored that Gibson is selling off Baldwin entirely — though that hasn’t been confirmed.
Gibson still pulls in annual revenues north of $1 billion.
If Gibson ends up in bankruptcy, CEO/owner Henry Juszkiewic will give up the entire company.”
One question is whether sagging guitar sales are playing a role here. This has been a growing problem for years, thanks to surging interest in EDM and rap. But broader cultural shifts are also putting the guitar in the rearview. Indeed, the recurring ‘rock & roll is dead’ cliché may finally be coming true — and seriously impacting Gibson’s bottom line.
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