Gibson in finance problems

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Gibson in finance problems

Postby RayL » Sun Aug 27, 2017 6:57 am

https://www.thestreet.com/story/1428061 ... -debt.html

Problems at Fender and others, too . . . .
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Re: Gibson in finance problems

Postby Mikey » Sun Aug 27, 2017 11:39 am

Bottom line.........will they bring their prices down?
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Re: Gibson in finance problems

Postby JimN » Mon Aug 28, 2017 12:07 am

The headline on that story (cited by Ray) is:

Gibson Guitar May Default if Company Can't Refinance Its Debt

If that were to happen, there would be little chance of Gibson actually going out of business entirely. It is a world leader in its field.

No, amend that: "It is THE world leader in its field".

If the current company ("Gibson Guitar") were to go bankrupt, the USA equivalent of the Official Receiver would seek a buyer for the business as a going concern, though probably with debt significantly reduced by the receivership process, rendering the company more viable.

The new owners would waste no time in divesting the company of all the peripheral stuff (Baldwin, Onkya, etc) and getting the core business back to where it used to be.
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Re: Gibson in finance problems

Postby Mikey » Mon Aug 28, 2017 4:25 pm

Would Epiphone be classed as "peripheral"?
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Re: Gibson in finance problems

Postby JimN » Mon Aug 28, 2017 5:44 pm

I would expect Epiphone to be a profitable arm of "Gibson Guitar".

Not so sure about those cheapo instruments shamefully marketed under the Baldwin (and even more so, Maestro) name.
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