Yesterday we noted how Gibson could potentially be facing bankruptcy, with the legendary guitar manufacturing company reportedly “running out of time”. Following the leaving of Chief Financial Officer Bill Lawrence, the company appeared to be in dire straits, “as $375 million in senior secured notes mature and $145 million in bank loans become due, if they aren’t refinanced by July.”
Further reports surfaced, noting that the company had recently moved out of their famous Nashville location, where they had been located for well over 30 years.
A press release from the company indicated that they’re in the process of refining their focus, with hopes of “eliminating product segments that do not perform to our expectations”, according to CEO Henry Juskiewicz. All going well, these movements should result in “the best financial results the company has seen in its history within the next year, and an ability to pay back the company’s debt in whole within several years.”
Now, in response to the rumours of Gibson facing bankruptcy, the company have announced the appointing of new CFO Benson Woo.
As Henry Juskiewicz stated, “We are excited and pleased that Benson with be coming back to the Gibson Brands family. He has a great knowledge of the industry, our current businesses and is liked and respected by everyone at Gibson and with whom he dealt. We are confident he will contribute to moving the company forward.”
While Gibson also announced that they have “met all current obligations to the bondholders,” the company’s hiring of a new CFO seems to be a positive move which will hopefully put any rumours of bankruptcy behind them. Gibson are yet to comment any further on the matter, but here’s hoping that we end up seeing this iconic instrument manufacturer’s name around for a long time to come.