Is Gibson Guitars facing bankruptcy after 116 years?

Since 1902 Gibson guitars have been a rock-solid pillar in the guitar business, especially with their iconic electric guitar, with very well known icons representing Gibson like Les Paul, Chet Atkins, Eric Clapton, Slash and many more.

But now the party might be over. With staggering debt and decreased sales globally, Gibson finds it hard to keep up with sales.

“Gibson Guitar is now falling on hard times, and softer guitar sales are just part of the picture.  According to details surfacing this week, the company remains deluged with debt, with desperate sell-offs to service a growing list of creditors.

Ringing the scary alarm is Nashville Post reporter Geert De Lombaerde, who unearthed mountainous debt obligations and a worsening financial crisis.  De Lombaerde pointed to a recent, $16.6 million coupon payment by Gibson to service $375 million in senior secured notes that come due this year.”

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