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Cool. I'm well stock in Gibson so no bother to me. This may be another indicator that the guitar/amp market is hitting a sharp cliff, something I think all the manufacturers would rather ignore or hide than admit to.

If the company defaults, all those morons and dum-dummies who bought late 50s 'bursts will finally dump them for a couple hun each. I may pick a couple up, even though they will be near worthless. I guess I'm just a senti-Mental guy.
 

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Default doesn't mean go out of business and close down. Worst case ownership of the brand and management of the company will change hands once again; anybody would be better than Henry/the current team, but they could survive this.

edit: nope, right the first time; doi
 

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If the company defaults, all those morons and dum-dummies who bought late 50s 'bursts will finally dump them for a couple hun each. I may pick a couple up, even though they will be near worthless. I guess I'm just a senti-Mental guy.
I don't think it will hurt the value of vintage Gibsons. The vintage ones were essentially a different company from a different time.
 

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If anything, vintage (and even recent model year used) ones will go up in price (if Gibson where to just shut down, which I do not find likely) because there will be no new/cheaper with warranty alternatives; simple supply and demand.
 

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If the company defaults, all those morons and dum-dummies who bought late 50s 'bursts will finally dump them for a couple hun each. I may pick a couple up, even though they will be near worthless. I guess I'm just a senti-Mental guy.
that's not how it works. when the supply of new instruments becomes a finite thing, the prices goes up, not down. if they did close down entirely, all instruments become more valuable instantly. when they sell, they'll get billed as "the stradivarius of guitars" by all the magazines, and kijidiots..

but like i pointed out on the gibby forum, the article says gibson brands, it does not say gibson usa.
 

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Poor Henry......................................
 

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I don't like em... but I'm not sure they'd be worse than Henry J.
 

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"Turnover at the "senior financial management level creates challenges to executing a quick operational turnaround," the rating firm added."

There have been lots of internet talk about the management style at Gibson which Moody's quote above hints at.

I read on the LP forum that a few of the senior guys at the Custom Shop were let go a few months ago including guru Rick Gembar. It caused quite a stir on the LP forum.

Doing some quick math, it would take Gibson 10-15 years to pay off the debt principal without any distribution of profits (assuming growth is flat).
 

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Moving production to China would be a terrible business decision in my opinion. They'd be giving up one of the things they do, which is make American guitars. There are already tons of Chinese guitars on the market, why play that game? I think they be better off with fewer models and lower production, but still US built.
 

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I think things will be much different in 25 years. I think we are in the golden years of guitar sales/mfg.

Any teachers here see a decline of young music students (instrument players?)
 
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