The company presented a business continuity plan that seeks to save the brand.
At 120 years old, guitar manufacturer Gibson filed for bankruptcy this past Tuesday, the 1st. According to company reports, sales of the instruments fell to 1 million in 2017 compared to 1.5 million ten years ago.
"Over the past 12 months we have been working on restructuring the company and trying to explore new horizons ," CEO Henry Juszkiewicz said in a statement to the press.
The expansion he mentioned refers to the purchase of Philips' electronics business in an attempt to expand into the sale of speakers, headphones, and other related accessories. However, this only brought more problems for the company and turned the attempt into a large debt.
In the statement, the president further explained that the decision to declare bankruptcy was made in order to "ensure the stability and long-term financial health of the company ." Gibson currently owes between US$100 million and US$500 million to 26 different companies.
The Nashville-based company has been facing difficulties for some time , but appears to have a solid business continuity plan that has been accepted by most of its partners.
The group produced some of the industry's most famous models and is an important part of rock history, being a favorite of big names like BB King, Keith Richards, and Jimmy Page.
