Taking Stock 

Gibson, brand cache, and the bond discrepancy

Mark Robinson

Gibson, brand cache, and the bond discrepancy

Distressing news for the guitarists among our readership, as it’s emerged that Gibson Brands Inc has been slashing overheads in a bid to stave off near-term bankruptcy. The Nashville-based instrument manufacturer, home to the iconic Les Paul line, among others, has been in business since 1902, but it’s now facing bankruptcy following a series of business miscalculations, culminating in the abrupt exit of its chief financial officer after only six months in the job. His departure came just as $375m (£270m) of senior secured notes are about to mature, with another $145m in credit commitments waiting in the wings unless they’re refinanced by 23 July.

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