Gibson guitar company is facing bankruptcy, and through an official statement, the company assures that it is in the process of finding a solution to its bankruptcy problem.
The company, which is behind one of the most iconic guitars in music history – the Les Paul – recently saw the departure of its chief financial officer Bill Lawrence. His leaving is seen as a bad omen for the company “as $375 million in senior secured notes mature and $145 million in bank loans become due if they aren’t refinanced by July.”
Gibson also recently moved out of its Nashville warehouse, which was the company’s home for over three decades. At the moment, company owner Henry Juskiewicz is attempting to get things in order financially, “but is facing a battle with creditors over bad business decisions.”
Founded back in 1902 in Kalamazoo, Michigan, Gibson is estimated to pull in $1 billion a year in revenues. The Les Paul, designed by the legendary guitarist himself, first went into production in 1952 and has since been used by musicians like Jimmy Page, Ace Frehley, Eric Clapton, Joe Perry, Bob Marley, and Slash. Other famous guitars from Gibson include the Firebird and the Flying V.