Gibson in finance problems

[RayL]

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

Problems at Fender and others, too . . . .

[Mikey]

Bottom line.........will they bring their prices down?

[JimN]

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.

[Mikey]

Would Epiphone be classed as "peripheral"?

[JimN]

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.