Gibson Guitars Files For Bankruptcy

Bankruptcy Filing

NASHVILLE-based GIBSON BRANDS, INC., maker of iconic GIBSON guitars for 124 years, has filed for bankruptcy protection, citing heavy debt and diminishing sales. The company filed for Chapter 11 in U.S. bankruptcy court in DELAWARE. GIBSON is reportedly saddled with more than $500 million in loans which are due in the coming months. A restructuring agreement however, will allow GIBSON to continue operating with a renewed focus on musical instruments.

Though it also manufactures other gear, GIBSON is most famous for its line of guitars, notably the LES PAUL model, considered legendary. Rock pioneer CHUCK BERRY was buried with his GIBSON; other guitar gods claiming allegiance to the brand include BB KING, ERIC CLAPTON, JIMMY PAGE, as well as ELVIS PRESLEY. The company does business in 80 countries, moving 170,000 guitars a year. Between its NASHVILLE; MEMPHIS; and BOZEMAN, MT facilities, the company employs nearly 900 people.

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