Guitar Company Gibson said to Be Facing Bankruptcy
Long a major presence at consumer tech shows like CES, musical instrument maker Gibson is said to be “running out of time” to repair a financial situation that could lead to the company declaring bankruptcy.
Founded over 100 years ago, the Nashville-based company pulls in annual revenues of more than $1 billion, but a simple statement made at the start of the month is said to point to serious financial struggles internally. The statement, which essentially summed up what sounded like a standard contractual debt-repayment, scratches the surface of what has reportedly been a “far from normal” situation.
According to a report from Nashville Post, Gibson CFO Bill Lawrence, who had been with the company a little more than a year, left the company just a short time before some $375 million in secured notes was set to mature. On top of that, the company has another $145 million in bank loans that will come due immediately if those notes are not refinanced by July 23rd, according to the report.