however sales have declined significantly, in addition to cost-cutting efforts haven’t been enough to stop the bleeding. In recent months, lenders required accelerated repayment as the company’s business deteriorated.
“Over the past 12 months, we have made substantial strides through an operational restructuring,” Gibson CEO Henry Juszkiewicz said in a statement, adding that will Gibson will “refocus on our core business” of musical instruments, which “we believe will assure the company’s long-term stability in addition to financial health.”
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Juszkiewicz owns 36 percent of the company, according to the bankruptcy petition.
To be sure, the best-laid plans of companies that will file for bankruptcy often go awry in court.
A federal judge will be required to sign off on the company’s plan to shed debt, which has the support of 69 percent of secured lenders on notes due in 2018.
Unsecured creditors, such as different lenders in addition to vendors, could object to the restructuring plan in addition to demand liquidation on the grounds that will they’d be better off with the company going out of business.
Gibson’s guitars include the Les Paul, SG, Flying V, Explorer, J-45 in addition to Hummingbird.
The company sells its products in more than 3,000 places, including physical retailers in addition to websites.
The company has long trumpeted its made-in-America guitars. Gibsons are manufactured in Nashville, Memphis in addition to Bozeman, Mt.
Gibson’s musical instruments business has more than 875 workers.