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Old 05-01-2018, 10:47 PM
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Exclamation GIBSON Guitars files for Bankruptcy Protection

Didn't expect to see this news

I'm not a guitar guy but I've always thought that Gibson was a solid company, obviously they make some amazing instruments and I just assumed (wrongly) that the company was fiscally sound.

https://www.npr.org/sections/thereco...tcy-protection
Quote:
The company behind the iconic Gibson guitars — whose instruments have been played by Les Paul, B.B. King and Jimmy Page, among many others — filed for Chapter 11 bankruptcy protection in Delaware. The Nashville, Tenn.-based corporation's current properties also include Baldwin Piano, Gibson Pro Audio and Wurlitzer, a company once famous for its organs but whose brand name Gibson now uses only for manufacturing jukeboxes.

As NPR has noted in the past, filing for Chapter 11 protection does not mean that a company is doomed to fail; instead, "it's a way for companies that can't pay their bills to not die."

The petition, filed on Tuesday, notes that the company currently has up to $500 million in debt and will focus its operations on its musical instruments business, "unburdened by the challenges experienced by [the company's] separate, primarily non-U.S., consumer electronics business." That business includes the brands KRK, Cerwin Vega and Stanton, whose lines include studio monitors, headphones and turntables. Gibson also currently holds a majority equity interest in TEAC, a Japanese home audio electronics company.
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Old 05-02-2018, 12:01 AM
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Default Re: GIBSON Guitars files for Bankruptcy Protection

The Obama Administration kicked them in the nuts a while back. Even strong companies don't easily recover from that.
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Old 05-02-2018, 12:09 AM
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Default Re: GIBSON Guitars files for Bankruptcy Protection

Quote:
Originally Posted by FrancSevin View Post
The Obama Administration kicked them in the nuts a while back. Even strong companies don't easily recover from that.
https://www.investors.com/politics/e...-intimidation/

Quote:
Now The Gibson Guitar Raids Make Sense

5/23/2013

IRS Scandal: The inexplicable raid nearly two years ago on a guitar maker for using allegedly illegal wood that its competitors also used was another targeting by this administration of its political enemies.

On Aug. 24, 2011, federal agents executed four search warrants on Gibson Guitar Corp. facilities in Nashville and Memphis, Tenn., and seized several pallets of wood, electronic files and guitars. One of the top makers of acoustic and electric guitars, including the iconic Les Paul introduced in 1952, Gibson was accused of using wood illegally obtained in violation of the century-old Lacey Act, which outlaws trafficking in flora and fauna the harvesting of which had broken foreign laws.

In one raid, the feds hauled away ebony fingerboards, alleging they violated Madagascar law. Gibson responded by obtaining the sworn word of the African island's government that no law had been broken.

In another raid, the feds found materials imported from India, claiming they too moved across the globe in violation of Indian law. Gibson's response was that the feds had simply misinterpreted Indian law.

Interestingly, one of Gibson's leading competitors is C.F. Martin & Co. According to C.F. Martin's catalog, several of their guitars contain "East Indian Rosewood," which is the exact same wood in at least 10 of Gibson's guitars. So why were they not also raided and their inventory of foreign wood seized?

Grossly underreported at the time was the fact that Gibson's chief executive, Henry Juszkiewicz, contributed to Republican politicians. Recent donations have included $2,000 to Rep. Marsha Blackburn, R-Tenn., and $1,500 to Sen. Lamar Alexander, R-Tenn.

By contrast, Chris Martin IV, the Martin & Co. CEO, is a long-time Democratic supporter, with $35,400 in contributions to Democratic candidates and the Democratic National Committee over the past couple of election cycles.

"We feel that Gibson was inappropriately targeted," Juszkiewicz said at the time, adding the matter "could have been addressed with a simple contact (from) a caring human being representing the government. Instead, the government used violent and hostile means."

That includes what Gibson described as "two hostile raids on its factories by agents carrying weapons and attired in SWAT gear where employees were forced out of the premises, production was shut down, goods were seized as contraband and threats were made that would have forced the business to close."

Gibson, fearing a bankrupting legal battle, settled and agreed to pay a $300,000 penalty to the U.S. Government. It also agreed to make a "community service payment" of $50,000 to the National Fish and Wildlife Foundation to be used on research projects or tree-conservation activities.

The feds in return agreed to let Gibson resume importing wood while they sought "clarification" from India.

The feds say they acted to save the environment from greedy plunderers. America is a trivial importer of rosewood from Madagascar and India. Ninety-five percent of it goes to China, where it is used to make luxury items like $800,000 beds. So putting Gibson out of business wasn't going to do a whole lot to save their forests.

Juszkiewicz' claim that his company was "inappropriately targeted" is eerily similar to the claims by Tea Party, conservative, pro-life and religious groups that they were targeted by the IRS for special scrutiny because they sought to exercise their First Amendment rights to band together in vocal opposition to the administration's policies and the out-of-control growth of government and its power.

The Gibson Guitar raid, the IRS intimidation of Tea Party groups and the fraudulently obtained warrant naming Fox News reporter James Rosen as an "aider, abettor, co-conspirator" in stealing government secrets are but a few examples of the abuse of power by the Obama administration to intimidate those on its enemies list.
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Old 05-02-2018, 12:22 AM
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Default Re: GIBSON Guitars files for Bankruptcy Protection

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Originally Posted by FrancSevin View Post
The Obama Administration kicked them in the nuts a while back. Even strong companies don't easily recover from that.
8 years of criminal activity, NOBODY in jail.
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Old 05-02-2018, 09:09 AM
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Default Re: GIBSON Guitars files for Bankruptcy Protection

I remember the news stories about Gibson getting raided.

I recall that the owner of Gibson believed it was political.

I know that the ukulele makers have been changing their wood choices because of the restrictions, stands to reason that the uke makers, which is likely a far smaller market than the guitar market, would have the same rules for wood use.

What I never realized was that an iconic brand like Gibson would be in trouble financially. Not sure if it is related to the Obama administration/IRS situation or if it is just market forces.
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Old 05-02-2018, 10:18 AM
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Default Re: GIBSON Guitars files for Bankruptcy Protection

It doesn't help they want more than double for a Les Paul than a Fender Strat!
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Old 05-02-2018, 10:42 AM
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Default Re: GIBSON Guitars files for Bankruptcy Protection

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It doesn't help they want more than double for a Les Paul than a Fender Strat!
Many moons ago I had a Fender Mustang along with a girlfriend who was trying to teach me how to play

Both the guitar and girlfriend are long gone!
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  #8  
Old 05-02-2018, 10:54 AM
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Default Re: GIBSON Guitars files for Bankruptcy Protection

Quote:
Originally Posted by Big Dog View Post
It doesn't help they want more than double for a Les Paul than a Fender Strat!
I think they price based on a formula of American hand made + materials + brand name prestige? Not sure that is always a winning formula.

But if you read the article, it appears that the Gibson guitar making part of the business may actually be the money maker and some of the electronics subsidiary companies may be dragging the company into debt?
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