Gibson, facing half-a-billion in debt, lays off custom shop workers

[Miles Archer]

Gibson, facing half-a-billion in debt, lays off custom shop workers

The problems continue at Gibson Guitars, as Standard & Poor’s downgraded the company and news emerges that Gibson is laying off workers at its custom shop.

“With multiple maturities looming and operating weakness ongoing, we believe Nashville-based Gibson Brands could default on its debt obligations over the next six months,” Standard & Poor’s said in a note to clients. “We are lowering our corporate credit rating to ‘CCC-’ from ‘CCC’.”

The negative outlook reflects what S&P Global called the “increased likelihood” that a default or restructuring event could occur within the next six months, the rating agency also said.

Also, a Nashville newspaper reported that Gibson has laid off about 15 employees from its Custom Shop, a part of the company dedicated to making scrupulously correct recreations of vintage electric guitars and special one-off orders.

https://www.daytondailynews.com/business/gibson-facing-half-billion-debt-lays-off-custom-shop-workers/rjjR7AvouveKGedOQKw41O/

[spanone]

1. It's a damn shame. Gibson has been an amazing brand/product....

Henry Juszkiewicz has not been good for the brand.

[world wide wally]

2. I have a 1975 Les Paul.

Sad news
They contributed a lot to the world of music.

[Snake Plissken]

3. This old news, they made some disastrous acquisitions and have been milking their guitar division

as a cash cow.

Henry Juszkiewicz went bargain shopping for brands that were significantly discounted, never considering that the reason they were significantly discounted is because they were products nobody wanted anymore. He thought by associating them with the Gibson brand they would become desirable again and he was wrong, meanwhile he's been jacking up the prices of Gibson's guitar to make up the difference which is having a disastrous effect on guitar sales which has always been their most profitable business unit.

[milestogo]

5. James Taylor made his first albums using a Gibson J-50 Jumbo.

[Comatose Sphagetti]

6. My first electric was a Gibson L6-S

Black.
Didn't like the color so I removed the paint and made it natural.
Put a Dimarzio in it.
Absolutely. Fucking. Ruined it.
They quit making them soon after I bought it.
I still kick myself in the ass.

[Dr Hobbitstein]

7. The shop I work for used to be a Gibson dealer,

but Gibson’s buy-in policies have been pretty much unattainable for the small mom-and-pop shops the last couple of years. Now, with their prices DOUBLE what they were just 5 years ago, quality control is way down, and they’re making horrible decisions designing guitars no one wants instead of just refreshing their big selling line (like Fender has been successful doing the last 2 years).

Henry J has shit all over a once great brand.

[honest.abe]

8. My first guitar was a Gibson Epiphone 12 string acoustic.

Beautuful looking and beautiful sound. Still have it though a bit banged up. Its nearly 50 years old.

[USALiberal]

9. No more guitar heroes! nt

[ChoppinBroccoli]

10. All My Guitars Are Gibsons

I absolutely love the Les Paul, and if something happens that causes the price of the Les Paul to drop significantly, I WILL stock up. Maybe part of the problem is that their guitars are just too expensive. It's hard for non-professional musicians to justify spending that kind of money while living under Republican economies. Maybe a price drop would re-invigorate that company.

[RainCaster]

11. Don't drop the price, raise the quality

I was not impressed when I went through the Nashville factory two years ago. It was all about shipping to the bulk of the market. I really wanted a 335 until I saw how they were made. I prefer my MIK Tele to a LPS any day for feel. Havr to admit the Gibson pickups would overload a tube front end much better.

I understand completely why they are going under.