End of an Era: Legendary guitar maker Gibson about to close

[Katzenfreund]

May 2018

 

Founded in 1902, the company has been synonymous with rock and roll since the 1950s, with its models — the most popular include the Les Paul, the SG, the Firebird and several semi-acoustic lines — being used by virtually every iconic guitar hero, too numerous to mention. Yet as rock music has fallen from mainstream popularity so have the guitar sales that form the bulk of Gibson’s business.

 

But despite their partial decline, guitar sales are still strong, producing annual revenues of more than $1 billion. And the quality of Gibson guitars remains indisputably high. What compounds the problems are some unsuccessful management decisions to enter the electronics business. As a result, the company in not able to meet its debt obligations and, after 116 years in business, Gibson Guitar has now officially filed for Chapter 11 bankruptcy protection.

 

Gibson Les Paul Traditional T 2016 Wine Red

 

http://variety.com/2018/biz/news/gibson-iconic-guitar-company-said-to-be-nearing-bankruptcy-1202704143/

[Mystique]

Actually some avid enthusiasts will insist that Gibson's quality has dropped of in recent years. Boutique guitars are holding well. Gibson also holds the Kramer line of guitars and I believe also acquired philips a few years ago.
Guitar sales went through a revival a few years ago (2000 - 2009 probably) and has steadily declined since.
There are some extremely talented guitarists and musicians but they are all so fragmented, the vibe isn't there anymore particularly in the rock/metal scene as far as I see it.

I doubt this will lead to Gibson's demise but they may have to sell off some of its assets and perhaps give up the kramer name. I believe Gibson also can take other measures such as exploring manufacturing in the east as the craftsmanship there has improved significantly over the years which perhaps has also added to the strain upon their business as knocks offs are getting better and better (that is not to say they are of similar quality) but the capability is there and within the official channels and guidance manufacturing in the east can not only be a wise economical decision as far as manufacturing costs but also in range, prices and market exposure.