At last, the painful waiting is over. Gibson Brands Inc. has (finally!) filed for Chapter 11 protection in Delaware, according to Bloomberg. The company’s creditors have, as widely predicted, forced a change in the company leadership. The consumer electronics part of the business responsible for the company’s woes will be sold. Meanwhile, the company wants to focus on its guitar business and return to profitability as a smaller, more nimble company, according to Bloomberg.
It seems that former owner Henry Juszkiewicz will stay on as CEO for the time being, although ownership has been transferred to the company’s creditors.
The company has applied for Chapter 11 of the U.S. Bankruptcy Code which aims to protect the business from total financial collapse and help them to restructure, streamline and carry on using the name. We understand that the courts have allowed them to carry on using both the Gibson and Epiphone brands which will remain along with Cerwin Vega and KRK Systems, thus concentrating the US-based company and hopefully getting them back on track to becoming profitable once more.
Full court filings and other documents related to the court proceedings are available here
You can also see the form with all the details of here, signed by Henry Juszkiewicz today.
It is fairly obvious that Henry Juskiewicz has always wanted Gibson to be a global lifestyle brand, however, it would now appear that by overreaching in the electronics markets and diversifying the company portfolio that he has, in fact, weakened the brand instead.
Most people saw this coming and I hope that this Chapter 11 bankruptcy application will finally help the Gibson brand to get back in black and out of the red. We all know that a good quality Gibson guitar can be something very special indeed, so it would be fantastic to have those back again.
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Henry’s official statement below.