Gibson

[pucho812]

A billion dollar debt looming, getting rid of folks at the custom shop and now this,

https://www.digitalmusicnews.com/2018/04/24/bankrupt-gibson-guitar-lawsuit/

 

[Tubetec]

I know of at least one person who paid to have that technological crap removed from their Gibson ,Ohhhh Orville what have they done now?

 

[Tubetec]

Yes you can replace a luthier with a very precise cnc machine and just resort to a few slaves on the production line to sand off the edges before the spray room bot takes over ,just another nail in the coffin of soul .

 

[PRR]

Guitar Center's status is also worth noting:
https://www.digitalmusicnews.com/2018/04/17/guitar-center-bankruptcy/

 

[Mbira]

It's their damn fault for putting that crap on a perfectly good guitar.

 

[ruffrecords]

What is this babble speak word 'storied' as in:

Rock n’ roll may never die.  But that’s little consolation to businesses based on the once-unstoppable genre and its storied instrument, the guitar.

Cheers

Ian

 

[peterc]

Storied.....

It's up there with 'Winningest'.

Leo Kottke once said one of his favourite techniques was to take a simple, beautiful melody and drive it into the ground.

Similar approach, except Leo was amazing.

 

[rob_gould]

Hmm, perhaps not :

https://www.merriam-webster.com/dictionary/storied

First Known Use of storied - 14th century

 

[PRR]

> Quote from: Merriam Webster
    First Known Use of storied - 14th century

There you go. Ian's schooling was 13th century.

 

[pucho812]

Well it's official.... Now chapter 11 is not the final blow but it does not look good, it also is a means to restructure things. 


https://reverb.com/news/gibson-files-for-chapter-11-bankruptcy-protection?utm_campaign=1612019_bloggibsonbankrupt&utm_medium=FB&utm_source=FB

 

[abbey road d enfer]

Well it's official.... Now chapter 11 is not the final blow but it does not look good, it also is a means to restructure things. 

Chapter 11 is a way of stalling the imminent law case that the designers/manufacturers of the infamous self-tuning gears intend to file. They are owed $50M. OTOH they failed to deliver a working product.

 

[pucho812]

They have bigger issues then a 50 million dollar lawsuit.

From what I have heard from a person inside, Gibson plans to liquidate consumer audio(Phillips) to focus on pro audio and guitars.

 

[pucho812]

More news from the inside, Henry is out, will be out shortly.

 

[JohnRoberts]

More news from the inside, Henry is out, will be out shortly.

He will be likely be paid to hang around for a while (year?), but expect current upper management to ultimately get flushed.

I think KKR is involved in this round of debt finance.

Sounds like their eyes were bigger than their revenue stream leading them to buy other businesses because they could. This is a consequence of too low interest rates for too many years. That tide is now going out so we can see who is wearing swim trunks (not them apparently)..

JR

 

[abbey road d enfer]

From what I have heard from a person inside, Gibson plans to liquidate consumer audio(Phillips) to focus on pro audio and guitars.

That would be right, since it's the dumbest of a series of strategic goofs.

 

[JohnRoberts]

That would be right, since it's the dumbest of a series of strategic goofs.

They also bought TEAC, perhaps they were drinking the vinyl resurgence koolade (TEAC makes turntables). Then there is the spiked koolade claiming that tape is the new vinyl.  (seriously?)

Even if vinyl/tape does outperform from here, probably too little and too late for Henry's grand vision of becoming a lifestyle company.

JR

 

[pucho812]

He will be likely be paid to hang around for a while (year?), but expect current upper management to ultimately get flushed.

I think KKR is involved in this round of debt finance.

Sounds like their eyes were bigger than their revenue stream leading them to buy other businesses because they could. This is a consequence of too low interest rates for too many years. That tide is now going out so we can see who is wearing swim trunks (not them apparently)..

JR

From the inside at KRK, my buddy says KRK is being left alone.  To cover debt henery will be unloading his 38% of the company  as part of it. He gets around 5 mil to go away when it's all said and done.

 

[JohnRoberts]

From the inside at KRK, my buddy says KRK is being left alone.  To cover debt henery will be unloading his 38% of the company  as part of it. He gets around 5 mil to go away when it's all said and done.

After chapter 11  his 38% stock equity is worth nada.

The public statements are that KKR is lead creditor with 69% of senior debt so they are the  big dog on the creditors committee.

KKR & Co. L.P. is a global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic partners, hedge funds.

KKR is Henry Kravis, George Roberts, and I don't remember who the other K is(was?). 

I have an old Peavey friend (Jim DeCola) who is master luthier at Gibson, or at least he was.  : I haven't bugged him for inside information because I don't really care.

JR 

 

[john12ax7]

He gets around 5 mil to go away when it's all said and done.

It's good to be an executive,  where you get handsomely rewarded for doing a horrible job.

 

[JohnRoberts]

It's good to be an executive,  where you get handsomely rewarded for doing a horrible job.

Arguably he invested and lost millions of dollars. This is not what winning looks like. 

I have never met the man but everybody I know who has, speaks poorly about him.

Looks like karma doing what it does.  8)

JR