Gibson files for bankruptcy: focus on guitars, ditch electronics
Gibson Brands has filed for bankruptcy protection. But don’t worry guitarists, the brand isn’t going anywhere.
Known for its famous guitars, the company owes as much as $500 million to creditors. It took on significant debt to finance a series of acquisitions to build up a Gibson Innovations electronics business that it’s in the process of separating from.
According to the press release “The Company’s Gibson Innovations business, which is largely outside of the U.S. and independent of the Musical Instruments business, will be wound down.”
While the headphones are likely done, other elements like its Gibson and Epiphone guitars, as well as studio monitors and loudspeakers will continue on. Gibson also owns brands such as Baldwin pianos and Wurlitzer, which is known for its pianos and organs.
The Nashville-based guitar maker was founded in 1894. Its Les Paul electric is one of the bestselling guitars of all time, and has been used by famous musicians like Eric Clapton, Slash, Jimmy Page, and Pete Townshend.