Gibson, an iconic American guitar manufacturer, has filed for bankruptcy.

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SteveFord

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They never did get their ebony back and have been using Richlite (basically, counter top material) as a substitute ever since aside from very limited editions.
My understanding is that they did not pass on a shady ebony deal like everyone else did and they got caught.

They also started quietly replacing point to point wiring with PCB boards, tried to do away with conventional tuners and forced everyone to buy guitars with battery operated tuners, poor quality control, oddly shaped necks, had a line up of hundreds of variations on the models, forced out the Mom and Pop stores, gig bags substituted for hard cases, all sorts of stuff.

Toss in the "we're not really a guitar company anymore" mindset and that's what led up to the current situation.

And the pricing: it would fluctuate depending upon how desirable they wanted the model to appear.  Sales are down on a model?  Raise the price.

JohnR

Gibson page on Wikipedia: https://en.wikipedia.org/wiki/Gibson

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Although it is well known for its guitars, Gibson's largest business is in fact electronics.[citation needed] Gibson offers consumer audio equipment devices through its subsidiaries Gibson Innovations (Philips brand), Onkyo Corporation (Onkyo and Pioneer brands), TEAC Corporation (Teac and Esoteric brands), Cerwin Vega and Stanton,[6] as well as professional audio equipment from KRK Systems and TEAC Corporation/TASCAM.

Photon46

None of the posts so far have addressed the real reason Gibson is going into bankruptcy: poor management decisions that have nothing to do with their legacy musical instrument business. Quoting from yesterday's Wall Street Journal:

" The musical instrument maker, founded in 1894, said the bankruptcy filing was prompted by looming debt maturities and the unsuccessful 2014 acquisition of Phillips consumer electronics business, in papers filed in U.S. Bankruptcy Court in Wilmington, De." "The company blamed much of its recent financial struggles on its Hong Kong based Gibson Innovations Ltd. division, a 2014 acquisition that sells Phillips branded consumer electronics such as headphones and speakers. "That acquisition has not been successful," said Brian J. Fox, Gibson's restructuring chief."

Gibson's debt ratings were downgraded, then they lost their credit insurance which resulted in the loss of significant amounts of business. So now they've defaulted on certain debt covenants in Asia. Now the Asian debt mess is threatening their USA business even though the US musical instrument business has a positive cash flow. Business at Gibson guitars is actually UP 11% over a year ago, so all the naysayers about the death of the electric guitar may be announcing the funeral prematurely.

They will restructure their debt obligations and Gibson guitars will continue. They've already lined up $135,000,000 in new bondholder financing.




wushuliu

None of the posts so far have addressed the real reason Gibson is going into bankruptcy: poor management decisions that have nothing to do with their legacy musical instrument business. Quoting from yesterday's Wall Street Journal:

Uh, that's exactly what my posts were about above.

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Doesn't sound like a consumer problem, sounds like a management problem
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Photon46

Uh, that's exactly what my posts were about above.
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Sorry mate, you are correct. Your comments didn't make way into my pre-caffeine compromised brain early this morning. I should wake up more before responding to threads.  :lol:

Tyson

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As a parent with an 11 year old in school right now, I've seen that we've been cutting funding (and class time) for the arts for decades now.  Well all you shortsighted stupid fiscal conservatives, this is what you get - less people get a solid exposure to the arts as kids, so you see a lack of interest later in life.  It's disgraceful how little we spend on education in this country.  And the "solutions" we provide are just more stupidity.  Instead of properly funding the schools/programs/teachers, we just eliminate things that are "not core" and focus all our effort on the "core subjects" which we also suck at because it's also underfunded.  The simple and obvious answer is to properly fund our schools.  But no, the idiot fiscal conservatives don't want to pay a single $ extra in taxes.  So here we are.  Hope those people that are whining about a decline in musical interest realize that you are very likely not just part of the problem, but actually causative. 

mix4fix

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My understanding is that they did not pass on a shady ebony deal like everyone else did and they got caught.

But, if a similar company did the same thing, and they don't get equal treatment, then there is a bias. It's selective enforcement on something that isn't really necessary in the first place.

I will not deny a company making stupid decisions. That happens. But, to believe that making "guitar hero" guitars for real would bankrupt icon of a brand doesn't fly with me.

mix4fix

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As a parent with an 11 year old in school right now, I've seen that we've been cutting funding (and class time) for the arts for decades now.  Well all you shortsighted stupid fiscal conservatives, this is what you get - less people get a solid exposure to the arts as kids, so you see a lack of interest later in life.  It's disgraceful how little we spend on education in this country.  And the "solutions" we provide are just more stupidity.  Instead of properly funding the schools/programs/teachers, we just eliminate things that are "not core" and focus all our effort on the "core subjects" which we also suck at because it's also underfunded.  The simple and obvious answer is to properly fund our schools.  But no, the idiot fiscal conservatives don't want to pay a single $ extra in taxes.  So here we are.  Hope those people that are whining about a decline in musical interest realize that you are very likely not just part of the problem, but actually causative.

Funding ain't the problem. Public schools suck and if were allowed to take our money elsewhere, we could start to correct that problem. Main problems (in general) we have though starts at home.

I can tell you are Liberal. There goes the insults right from the start. Liberals run the education system and those inner cities. Maybe it's time for a change.

Tyson

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Funding ain't the problem. Public schools suck and if were allowed to take our money elsewhere, we could start to correct that problem. Main problem we have though starts at home.

I can tell you are Liberal. There goes the insults right from the start. Liberals run the education system. Maybe it's time for a change.

Yes, you are soooooooo right, people that want to spend money on education are the problem.  That's why the red states have the best education systems!  Oh wait, they don't.  In fact, the blue states, with the better funded education systems have better outcomes.  Shocking that the states that spend more on education get better educated kids!  What kind of crazy logic is that??!!?? 

But here's where I agree with you. If you look at an individual kid (or even an individual school district), then yes, it is true that if you take all the high performing kids out of the public schools and put them into a private "high performing" school, then that minority of kids get a better education.  But it also royally screws over EVERYONE ELSE.  But I suspect you are a conservative, and therefore don't give a flying flip about anyone else but yourself.

You are probably also the type of person that whines about the "decline" of our modern society.  And you don't see that your ideas directly contribute to this decline. 

wushuliu


Tyson

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Actually this has veered to much into politics and for that I apologize.

mix4fix

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Yes, liberals are the problem.  That's why the red states have the best education systems!  Oh wait, they don't.  In fact, the blue states, with the better funded education systems have better outcomes.  Shocking that the states that spend more on education get better educated kids!  What kind of crazy logic is that??!!?? 

But here's where I agree with you. If you look at an individual kid (or even an individual school district), then yes, it is true that if you take all the high performing kids out of the public schools and put them into a private "high performing" school, then that minority of kids get a better education.  But it also royally screws over EVERYONE ELSE.  But I suspect you are a conservative, and therefore don't give a flying flip about anyone else but yourself.

You are probably also the type of person that whines about the "decline" of our modern society.  And you don't see that your ideas directly contribute to this decline.

I'm becoming more Libertarian, but I am not there yet. I wouldn't necessarily deny anybody a cake, but a $130K "fine is a decline of modern society (it's political punishment). A moral decline is how that person is raised/indoctrinated to believe that political or social bullying is acceptable (punishment doesn't fit the crime) to force their way on people. People don't boycott for principle anymore (it's to destroy instead of having them change their ways). I vote with my wallet regardless if somebody else does it or not.

When it comes to education guess what: people like me are not going to be a doctor or drive a Lambo. I have my place being an average slub who went to a community college and drives a new Ford. Not everyone is going to be successful. There are going to be ditch diggers in life. Plus, it has been proven that you don't even need an education to be successful in life (those people on "Dirty Jobs" are not poor).

But, we are getting away from the subject. A business WAS hurt by government actions, and the evidence seems clear that it shouldn't have been or wasn't equally performed (Liberals want equality, right?)..

mix4fix

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Actually this has veered to much into politics and for that I apologize.

We have to stop.

Back to our regularly scheduled postings complaining about audio.

Tyson

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We have to stop.

Back to our regularly scheduled postings complaining about audio.

Darn kids these days, they don't even know what good music is!  I tellya!!! ;)

wushuliu

Gibson page on Wikipedia: https://en.wikipedia.org/wiki/Gibson

Whoa, they own Onyo, TEAC, and *Pioneer*? They really did stray from the path. Then this bankruptcy is probably a good thing. Kick out 'Robot Guitars are the Future' CEO and refocus the Gibson brand on premium instruments.

CSI

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We have to stop.

Back to our regularly scheduled postings complaining about audio.

Seems to me looking for the culprit that brought down Gibson is likely to be colored by one's personal politics. What is surely NOT appropriate here or anywhere else on this forum is assigning selfishness, nastiness, or other ugly traits to folks whose main crime is disagreeing with you. I managed to live through 70+ years arguing politics with many of my friends without calling them names for exercising their right to their own opinions. Just saying...

SteveFord

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I've owned Gibson electrics since around 1974 and have four of them at the moment.
They make some wonderful instruments and I hope they can right the sinking ship and keep production here in the US. 
Time will tell.

FullRangeMan

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Gibson cant pay the hi paychecks labour in US,
go to China is a fresh air exit.

SteveFord

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They do make Chibsons, they're called Epiphones.
It's the foray into electronics that did them in, not the guitars.
Lots of stupid decisions with the guitars didn't help matters any, though.

FullRangeMan

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One time I tested a Epiphone Paul McCartney hohner viola bass after adjust the tones it had a great piano sound.