Gibson near bankruptcy

Steve

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gibson-cover.jpg

Released a few days ago it seems the people managing Gibson, namely Henry Juszkiewicz (CEO), have made some poor business decisions resulting in a recent move from their Nashville warehouse where it had been since the 80's. I think, like some have said, they can survive it but will need someone to really dig in and restructure the the business, they do $1 billion in revenue so I think with that they can downgrade certain aspects to recover.

http://www.daytondailynews.com/business/gibson-guitar-company-facing-imminent-bankruptcy/UUQESYcO94O9RXfuraMQeJ/

Original article
https://www.nashvillepost.com/business/music-business/article/20992105/gibson-running-out-of-time-rapidly
 
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Tracy Perry

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It will be a pity if they hit the wall like it looks like is going to happen.
The Gibson name will stay around no matter what - but it probably won't be what most people think of. They got WAY involved into consumer electronics, probably after they saw that the electronic guitar sales were on a decline. Acoustic guitars are still pretty strong, but most Gibson acoustics are priced WAY above what an equivalent Martin or Taylor is and not as many people like/want the muted sound that the Gibson acoustic has. I know I haven't found one yet (new model) that impresses me enough to want to part with any money for it.
 

zappaDPJ

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It will be a great shame but it looks inevitable and they only have themselves to blame. The majority of their guitars are extreamly overpriced and suffer from unbelievably poor quality control. The current CEO who is perceived as the savior of Gibson by many appears to come from another planet, the planet clueless as far as I'm concerned.

Everyone knows that they are done so you would think people would be buying up the last run of what is arguably the world's most iconic guitar but no one wants them because they are crap.
 

Steve

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Maybe Epiphone will buy them out :p (Not sure how that all works as they're a sister company)...
 

zappaDPJ

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In a way Epiphone are part of the problem. I don't know whether they are profitable, the price point and quality control are certainly a lot more in sync than they are at Gibson. However Epiphone like so many other companies is a Gibson acquisition and that is one of the issues. Gibson keep buying up other companies instead of concentrating on their own. They also keep initiating expensive lawsuits which they never win.

But the bottom line is their CEO is an alien and their products are overpriced crap. I know a fair number of semi-pro and pro musicians and I don't know anyone that uses a modern Gibson of any sort. Even the Les Paul used heavily by Slash was not a Les Paul, it was a copy made by a luthier: http://www.slashsworld.com/equipment/guitars/59-les-paul-replica-built-by-kris-derrig/
 

Steve

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Yeah I was more poking fun there. Just going to have to wait and see what comes of it all. Hopefully it can turn the corner and be a leader again.
 

zappaDPJ

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I could easily turn it around. I'd sack the top level management and sell off everything except for the guitar manufacturing side to pay off as much debt as possible. I'd temporarily close the custom shop and use the surplus skill there to oversee the manufacture of American built, mid range and far eastern budget priced guitars that people want to buy. I'd then reinstate the custom shop and award myself half a dozen guitars in recognition of a job well done :cool:(y)
 
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Tracy Perry

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But the bottom line is their CEO is an alien and their products are overpriced crap.
I've been eyeballing a J-15. Only thing is I'm not a fan of dreadnought size guitars as I find the OM/000/00 sizes more comfortable to play due to my shoulder issues.
 

zappaDPJ

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I've been eyeballing a J-15.
Ha! I'll cut a long story short. That's an odd guitar, partly made of walnut ... :eek: I'll admit they don't quite fit my broad generalization of Gibson's 'overpriced crap'. You can still get more for less but the J-15 sounds pretty good and they play well, I've tried a few.

I'm in the market for an acoustic to use in the studio. I must have played well over a hundred but I still haven't found one I feel totally comfortable with. It's probably because I've used the same acoustic for last 30 plus years.
 

Tracy Perry

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That's an odd guitar, partly made of walnut
That's one of the reasons I'm interested in it. Made of all American woods and to top it off they are sustainable woods. I kind of like the walnut B&S, and the sound is not that bad, even compared to the J-35/45.
The other guitar I've been eyeballing is a Martin OME-Cherry Orchestra model.
I want to broaden my sounds from all Martin (first step was with the Ibanez). Not really crazy about Taylor but I do like Breedlove sound.
I just am still debating a dread sized guitar as I've never really felt comfortable with them and my shoulder hurts quicker when I've played around with them.
 

Steve

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I just am still debating a dread sized guitar as I've never really felt comfortable with them
Me either, I just cant ever get comfortable even standing with a strap. Love the sound the Fender puts out but can only play it for a short time.
 

Tracy Perry

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Me either, I just cant ever get comfortable even standing with a strap
I've really gotten to like the 00 and parlor size ( think they classify as an 0) guitars I have. Very comfortable and I call 'em my couch guitars.

I've been REALLY tempted to save up for a Gibson 1932 L-00 True Vintage guitar. It's one of the few that they have that I really like the looks of (yes, aesthetics count zappaDPJ zappaDPJ ;) ). Only thing is I'm not crazy about paying 5K for a guitar.
 

zappaDPJ

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I've been REALLY tempted to save up for a Gibson 1932 L-00 True Vintage guitar. It's one of the few that they have that I really like the looks of (yes, aesthetics count @zappaDPJ ;) ). Only thing is I'm not crazy about paying 5K for a guitar.
As it happens I don't particularly like the looks of the True Vintage compared to the Standard. There's far too much paint for my liking and the pick-guard reminds me of night out with a cheap date :censored: However the True Vintage sounds so rich and open it's on my list as well especially so because some outlets here are heavily discounting last year's model: https://www.gear4music.com/Guitar-and-Bass/Gibson-L-00-Vintage-2017-Acoustic-Guitar-Vintage-Sunburst/1OCT
 

Tracy Perry

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That's about $1000 less than what you can get it for from the vendors I normally use (Guitar Center $4,499, Musicians Friends $4,499).... so that's a steal compared to them.
What I like is the darker look it has... it's not your standard burst pattern. They are more in line with the '34 L-00's.

34_L00_3.jpg


Even at that, still not worth almost 4K for what you are getting. I'd just as soon go find an original for that amount.
The biggest issue with Gibson is there is no guarantee on what you are getting from them now. Play 4 different guitars of the same model and they each sound very different. Main reason I would like one is to, honestly, just have a Gibson in the stable.
 

zappaDPJ

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I don't think I'd pay 4K and I agree at that price I'd probably be looking at vintage guitars as well. The quality control of Gibson acoustics seems far more consistent than their electric guitars. They are generally better finished and properly set up. One thing I have noticed is the depth of the burst is very inconsistent between guitars. I don't know if that's by design but it's unusual even for a hand finished process.
 

Tracy Perry

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And they filed today for Chapter 11 protection.
Gibson files for Chapter 11 protection
It was just a matter of time.
They will continue to operate but concentrating on "organizing around their CORE business". Guess it's a pretty good indicator that their foray into electronics was a major mistake.
Control is being handed over to the private-equity giant KKR & Co. My concern is that KKR will do what most private-equity companies do.
 

zappaDPJ

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And they filed today for Chapter 11 protection.
Gibson files for Chapter 11 protection
It was just a matter of time.
They will continue to operate but concentrating on "organizing around their CORE business". Guess it's a pretty good indicator that their foray into electronics was a major mistake.
Control is being handed over to the private-equity giant KKR & Co. My concern is that KKR will do what most private-equity companies do.
"The Gibson name is synonymous with quality and today’s actions will allow future generations to experience the unrivaled sound, design and craftsmanship that our employees put into each Gibson product" - Juszkiewicz (CEO).

While in the real world Gibson employees hate working for Gibson. They are overworked, underpaid and and it shows in the dreadful quality of the over-price guitars they turn out. As much as I hate to say it, they don't deserve to survive.
 

Tracy Perry

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dreadful quality of the over-price guitars they turn out.
More the electric than their acoustic line. Overall feedback I've seen on the acoustics has been good. I know the one I have has no issues, other than the customer applied compression dent. :cool:
 

zappaDPJ

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I've only really picked up electrics or semi-electrics recently so I can't really comment too much on their acoustics. From what I've seen the Montana factory is much more hands on rather than machine so the guitars made there should be better. What I have found is like Martin their acoustics seem to ship with a higher than desirable action. I appreciate too high is preferable to too low but over 4mm at the 12th fret is never going to help sell a guitar. My Martin was nearly 3.5mm which is why it went straight off to my guitar tech.
 
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