The Canadian Guitar Forum banner

1 - 20 of 60 Posts

·
Premium Member
Joined
·
17,874 Posts
Discussion Starter #1
CEO Henry Juszkiewicz ousted as Gibson guitar co saved from bankruptcy
By Michael Astley-Brown (Guitarist, Total Guitar) a day agoGuitars

New CEO in place but yet to be named

(Image: © Neil Godwin/Future)

Gibson is officially on the road out of bankruptcy, after bondholders’ plans to keep the legendary guitar builder in business were approved in a US Bankruptcy Court on 2 October.

Following its Chapter 11 bankruptcy filing back in May, Gibson faced up to $500 million in debts, which have now been wiped, with up to $70 million now invested as a “business plan for growth”, according to Billboard.

The company will now be run by bondholders, including Kohlberg Kravis Roberts & Co. and Melody Capital.


We are musicians. We care deeply about the brand and we are going to protect it

Board member Nat Zillkha
Most significantly, CEO Henry Juszkiewicz is out of the picture, with him and co-owner Dave Berryman seeing their equity stakes cancelled. Bloomberg reports that both will receive a consulting agreement that bars them from making negative comments about Gibson.

“I will continue to aid Gibson for at least a couple more years, and my mission, really, is to pass on the knowledge and the tools to allow the next generation of management to really excel and bring the brand to a whole new level,” Juszkiewicz told Guitarist recently.

A new CEO has apparently been appointed but has yet to be named; new board member Nat Zillkha, head of alternative credit at KKR and musician, is keen to reestablish Gibson’s position as a musical instrument manufacturer.

“For us, establishing the credibility that we intend to deliver is important,” he told Bloomberg. “We are musicians. We care deeply about the brand and we are going to protect it.”
 

·
Premium Member
Joined
·
25,170 Posts
When Hank and Dave first took over the reins at Gibson, they were doing all the right things. Over time, though, somehow they lost their way. If the advice they provide comes from the mindset of the early days, the company will thrive under new ownership, as it did when J&B took it over.
 

·
Registered
Joined
·
12,118 Posts
You'd think of all the years they'd get their shit together, this would be the one.

Instead, they offer the Standard in only two colour choices, both hideous on a LP.
 

·
Registered
Joined
·
1,944 Posts

·
Premium Member
Joined
·
12,586 Posts
Good luck to the new guys. They may find out it's a thankless and impossible task.

Reissue the classics and they are never correct enough. Wrong color, wrong carve, wrong capacitors, etc. And too expensive. And of course, Gibson isn't doing enough to advance the instrument, resting only on it's laurels.

Try a few radical new ideas and they are pissing on their tradition and missing what customers really want. Plus, everything that doesn't look exactly like a 59 Les Paul is, well, just plain wrong. Damned if you do, pass the ice cream.

Yea, good luck with that, fellas.
 

·
Premium Member
Joined
·
13,180 Posts
There is always HOPE,... (unless you are a gone totally to the darkside The Last Jedi hater*)

*Nothing to do with Gibson, but hey..........
 

·
Registered
Joined
·
3,533 Posts
they would go a looooong fucking way just by adopting a more reasonable pricing strategy
This.

So this.

Large amount of profit on smaller sales versus an acceptable amount of profit on much larger sales. I’ve seen people in my industry chase both.

Guess which one wins more consistently?

Guess which one drives a bigger machine?
 

·
Premium Member
Joined
·
17,099 Posts
$500 million in debts “wiped”.

I understand the basics of bankruptcy and chapter 11 protection, but is anybody “wiping” the debts of the compnaies owed money by Gibson?

There’s something wrong with that.
 

·
Premium Member
Joined
·
17,385 Posts
$500 million in debts “wiped”.

I understand the basics of bankruptcy and chapter 11 protection, but is anybody “wiping” the debts of the compnaies owed money by Gibson?

There’s something wrong with that.
Debt is pennies on the dollar for firms to buy out. That came to probably $70k USD if my memory of a specific John Oliver episode is correct.

Maybe Gibson will right the ship. Maybe they wont. At least we have some of the good ones of the last 70 years still.
 

·
Premium Member
Joined
·
17,099 Posts
Debt is pennies on the dollar for firms to buy out. That came to probably $70k USD if my memory of a specific John Oliver episode is correct.

Maybe Gibson will right the ship. Maybe they wont. At least we have some of the good ones of the last 70 years still.
I’m referring to the vendors / suppliers ripped off in the process of bankruptcy.

Debts should be paid.
 

·
Premium Member
Joined
·
17,385 Posts
I’m referring to the vendors / suppliers ripped off in the process of bankruptcy.

Debts should be paid.
Aaaah. One would think so yeah.
 

·
Registered
Joined
·
1,944 Posts
All of the money stuff will get sorted by new lawyers and market managers fighting the old lawyers and money managers.

I am sure that HJ and partners lost some of their equity stake in the company.
 

·
Premium Member
Joined
·
17,099 Posts
My comments are addressing the fact that someone can throw their hands in the air, declare bankruptcy, default on the money they owe to their suppliers, and be back in business running another company in the blink of an eye.

We ALL pay for that bullshit.
 
1 - 20 of 60 Posts
Top