Shadows are looming over Gibson guitars these days with serious concerns over the future of one of the world’s most famous guitar companies.
Complaints regarding over-priced yet poor quality guitars in recent years has seen the company’s reputation nose-dive.
Gibson could be moving towards bankruptcy as the investment analysts Moodys downgraded the company’s rating to CAA3 (one of the lowest ratings), stressing that the company is now a high credit risk. Gibson is facing paying back bank debts of $145million in July this year with a staggering $375million debt to bond holders due for repayment in August 2018.
Gibson also withdrew from the NAMM show this year. This is the main event for music companies to promote their latest products, yet Gibson instead turned up at a consumer electronics show. Maybe the reaction to the launch of their latest guitar proved this to be the right decision! Prized at a mere $4,500 the modern flying V has been slated everywhere, especially by Glenn Fricker on his SMG youtube channel. I’ll leave it to Glenn to explain where Gibson went wrong.