Gibson coming out of bankruptcy

Jack Stoner · Post by **Jack Stoner** » 4 Oct 2018 8:52 am

See the Bloomberg article linked below. New owner board who are all musicians taking over company.

https://www.bloomberg.com/news/articles ... bankruptcy

Erv Niehaus · Post by **Erv Niehaus** » 4 Oct 2018 10:35 am

They should do better by getting rid of the bean counters.

Erv

Barry Blackwood · Post by **Barry Blackwood** » 5 Oct 2018 7:55 am

A company run by guitar players could be considered a dubious honor by some...

Godfrey Arthur · Post by **Godfrey Arthur** » 5 Oct 2018 1:16 pm

It doesn't help that most of the hits on the Top 40 list of late has none to little guitar on the tracks.

Most being samples and synths.

John Butler · Post by **John Butler** » 6 Oct 2018 7:22 am

If they can't build a guitar that guitar players can afford, without getting a second mortgage on they're home, they should go out of business. And stay out!

Erv Niehaus · Post by **Erv Niehaus** » 6 Oct 2018 7:34 am

I think they already tried that.
I don't think cutting the price (and resulting quality)
is the key to success.

Erv

Godfrey Arthur · Post by **Godfrey Arthur** » 6 Oct 2018 7:41 am

China as with many things has taken over the market.

A company like SX can make guitars that many find affordable and good enough for studio work.

A lot of these guitars go for $100 used.

Brand loyalty is not as strong as it once was.

Didn't help that Gibson got raided for wood "issues."

Jack Stoner · Post by **Jack Stoner** » 6 Oct 2018 10:19 am

One of Gibson's problems was expanding into areas other than the guitar business. They bought Cakewalk Sonar from Roland and abruptly shut it down about two years later (it has been taken over by another company). They tried, too late, to get into the crowded consumer Bluetooth audio market with the Phillips merchandise but failed in that. Its had several other companies that it purchased then discontinued as Gibson couldn't make them viable.

Finally, a $500 Epiphone model of a Les Paul ain't a bad guitar. I know several that have or can afford a Gibson Les Paul but like and play Epiphone models. Gibson probably sells a lot more Epiphone's than it does Gibson's.

Bill Hatcher · Post by **Bill Hatcher** » 6 Oct 2018 12:51 pm

"majority of the board will be guitar players"...LOL!!!

i see a disaster waiting to happen. musicians are pretty much the worst business people you will ever find. this is funny. i predict you will see a takeover of gibson at some point. the creditors want the name. the music industry stinks right now. not enough kids entering the music market. they all want computer stuff. the older group who used to spend all kinds of money at guitar shows and guitar center....they are getting rid of their stuff now.

my prediction. the new board will just do what new gibson boards always have tried. reissues of classic models that wont be as good as the originals and higher prices. watch.

Godfrey Arthur · Post by **Godfrey Arthur** » 6 Oct 2018 1:25 pm

Bill Hatcher wrote: the new board will just do what new gibson boards always have tried. reissues of classic models that wont be as good as the originals and higher prices. watch.

Meanwhile the original classics' prices will go through the roof.

Music has been shanghaied into changing the way it's made.

David Gertschen · Post by **David Gertschen** » 6 Oct 2018 1:27 pm

Well, according to the article:

"The company can now exit bankruptcy under a new board of directors, a majority of whom will be guitar players, said Matthew Ross, the KKR director who led the private equity company’s takeover effort."

That seems a "fur piece" from Musician's trying to run a corporation! Over 20 million people are "guitar players" in the U.S. alone. I've seen quite a few executives who keep a guitar in their office...

Anyway, I hope it works out. I like Gibson as a historic American company and instrument brand.

Susan Alcorn (deceased) · Post by **Susan Alcorn (deceased)** » 11 Oct 2018 3:58 pm

Actually, their guitars were still profitable. It was the "business" that brought them to that point - the consumer electronics and the "music lifestyle" approach. Also, correct me if I'm wrong, weren't they, like Guitar Center, bought out by a hedge fund?

I'm glad that the company will hopefully re-emerge with people who really love the guitars in charge of things. I've known a lot of guitar players who couldn't go a week without taking something to the pawn shop, but there are some really bright and sharp guitarists out there too. Best of luck to them!

Now . . . I wonder when we can expect the new Electraharps?

Jack Stoner · Post by **Jack Stoner** » 12 Oct 2018 2:20 am

There were a lot of complaints and comments about poor Quality of recent (new) Gibson's. That added to all the other problems that they faced.

Donny Hinson · Post by **Donny Hinson** » 14 Oct 2018 6:14 am

Unless you're a devoted fan, it's just another guitar.

Fact of life - brands come and go.

Post by **Dave Mudgett** » 14 Oct 2018 7:05 am

A lot of guitar players, especially performing guitarists, are very image conscious. You know, they like to be associated with particular equipment stylistic choices, brands, and so on. I sure can't imagine steel players caring about that kind of stuff at all.

But seriously - musicians frequently do become devoted to certain instruments, amps, and so on. You will have to pry my favorite Les Pauls, Gibson arch tops, Teles, and Strats from my cold, dead fingers.

My opinion - if Gibson can get back to their core business: building high-quality guitars in the tradition that they have done during their high points - and stop all the (IMO) nonsense of trying to expand into areas that they obviously (IMO) know very little about - then I think they'll be just fine.

I said this on an earlier thread about the initial bankruptcy - I think Rickenbacker is the best example of how to do this. They have been chugging along since the 1930s making evolutionary changes to their business model and have never lost their core vision. They have a continuing loyal base of dealers and players, and good luck getting a Rick dealership - they sell everything they can make, they don't need any more.

Jim Cohen · Post by **Jim Cohen** » 14 Oct 2018 7:47 am

Susan Alcorn wrote:Now . . . I wonder when we can expect the new Electraharps?

Be careful what you wish for, Susan!*

* Speaking from experience; it was my first steel... "Oy vey!" as they used to say in the 'hood...

Susan Alcorn (deceased) · Post by **Susan Alcorn (deceased)** » 14 Oct 2018 8:23 am

Jim Cohen wrote:[quote="Be careful what you wish for, Susan!*

Yes. [tongue firmly in cheek]