Gibson bankruptcy

Early on Tuesday morning in Delaware Gibson Brands has filed for bankruptcy.
The company is up to $500 million in debt. Gibson announced restructure, aims to sell off consumer electronics division. The restructuring will give lenders equity in a new company, and allow Gibson to "unburden" itself of its consumer electronics division.

"Over the past 12 months, we have made substantial strides through an operational restructuring," said Gibson CEO, Henry Juszkiewicz.
"We have sold non-core brands, increased earnings, and reduced working capital demands. The decision to re-focus on our core business, Musical Instruments, combined with the significant support from our noteholders, we believe will assure the company's long-term stability and financial health. Importantly, this process will be virtually invisible to customers, all of whom can continue to rely on Gibson to provide unparalleled products and customer service."

In a series of interviews, CEO Henry Juszkiewicz blamed the company’s financial troubles on “problems with the guitar retail industry” and "purists".

“Kids today may think some music from the '50s is kind of cool here and there, but what other industry do you know that hasn't changed since the '50s?

"Those guitars from the 50s are what the purists want, but we have to have something new and exciting.

For the full story on Gibson’s troubles you might find interesting Musicradar article