Guitar-Maker Gibson Brands Files for Bankruptcy

[hivkorn]

https://www.wsj.com/articles/guitar-mak ... 0?mod=e2fb

[jsp1979]

I'm not sure the shocked emoticon is really accurate here.

[BertKoor]

No shock, just anticipated sad news.

The good thing about guitars is: no challenge-response!!! So current owners can enjoy their axe without issues. Or sell on (for marginal profit) without license transfer issues.

Told you so: hardware is to be preferred over software

[Bombadil]

I wonder who they'll dump Harmony Central on, or even if it will survive. I expect that's one of their lesser worries, though.

[metamorphosis]

https://www.bloomberg.com/news/articles ... r-business

"The Chapter 11 filing on Tuesday in Delaware keeps Gibson in business but gives ownership to noteholders"
"The restructuring will allow the instrument business to "unburden" itself of a consumer-electronics unit that Gibson blamed for its financial woes. "

"Its Gibson Innovations business, which sells audio products like speakers, headphones, and DJ products, was the source of its financial woes, according to a court statement from Brian J. Fox, a managing director at Alvarez & Marsal who will serve as the company’s chief restructuring officer. Acquired through a leveraged transaction, the business faced significant sales declines due in part to a loss of credit insurance overseas. The unit will be wound down, according to a Gibson news release."

[Jace-BeOS]

So, in other words, diversifying caused their problems, like it usually does to any company that is originally formed around doing one product expertly.

But who needs to learn from repeated history? The executives who make those decisions, and the board of directors who vote for it, almost always make out like bandits no matter what happens to the company.