Iconic guitar manufacturers Gibson are set to live on into the foreseeable future, with their plans to avoid bankruptcy being formally approved.
Over the last year, we’ve posted on numerous occasions how the iconic guitar brand Gibson were heading for bankruptcy. After first playing down rumours earlier this year, the brand soon admitted that things looked bleak, before officially filing for bankruptcy, and receiving a lifeline loan of $135 million.
While fingers were undoubtedly pointed in the wake of this news, it was the current CEO, Henry Juszkiewicz, who conceded that the company’s status was a result of his apparently poor decision to try turn Gibson into a “music lifestyle company” by selling high-end audio equipment in addition to their regular catalogue of guitars.
“No, it wasn’t a great decision,” Henry Juszkiewicz confessed. “It didn’t work out very well. I think it was a rational decision, but it turned out to be a very poor decision, and it’s a decision I made. It is what it is.”
While it was noted back in August that the company were on the lookout for a new CEO, the company is now set to restructure itself after having their plan to exit bankruptcy approved this week.
As Billboard reports, Gibson’s plan was approved by a U.S. Bankruptcy Court on Tuesday. The actual plan involved the company’s $500 million worth of debt being wiped, with up to $70 million being invested as a “business plan for growth”.