GIBSON | Photo Courtesy
News broke over the weekend that guitar industry giant Gibson was facing serious financial troubles. The manufacturer of such classics as the Les Paul, SG and Flying V, Gibson is reportedly struggling to meet its deadlines to pay the company’s bondholders. This raised a concerned outcry from musicians and music fans alike, worried over the potential loss of their favorite brand.
To help quell the fears of their loyal patronage, CEO Henry Juszkiewicz released an official response, stating “We have been monetizing assets like stock holdings, real property and business segments that could not achieve the level of success we expected … It is important to our business to get back to the financial success we had …” One such asset appears to be the company’s CakeWalk music software, which they have stopped funding the development of.
He also claimed that the company has fulfilled all of its monetary obligations to its bondholders. With the company’s refinancing, they remain optimistic they will pay off their debt within “several years.”
For those agonizing over which guitars will be sacrificed for the cause, indications seem to say not to worry. All of Gibson’s efforts appear to be focused on protecting their claim-to-fame. It is no secret Gibson’s guitars are their main asset and with so many musicians still using and praising them, they are far from financially underperforming.
So fear not, you still have plenty of time to save up for that SG Custom or Slash signature Les Paul. There is no doubt only time will tell, but for now Gibson isn’t going anywhere.