Gibson owes as much as $500 million, and lenders will provide a new loan of up to $135 million to keep the company in business
That brings the debt up to $635 million. That's a lot of Les Pauls to have to sell. It's hard to see how they'll do it. Every new guitar they make dilutes an already overcrowded market.
Gibson, founded in 1894, sells over 170,000 guitars annually in 80 countries... All told, the music instruments business employs at least 875 people
When you consider the amount of managers, marketing, accountants, the electronics companies, etc... the amount of non-guitar production staff in that number, it makes for a surprisingly low number of people actually making those 170,000 guitars. They must have automated the living shit out of production which is surprising given how random their quality control is. Think about it, how many Quality Control people alone do you think it would take to properly evaluate 170,000 guitars in a year? Now, subtract that number from 875. Then they charge the prices they do for a guitar with as much hands-on production time as a far-Eastern Squier or LTD? It's as much low cost computerised automation as they can do yet they try to sell the illusion of crafstmanship of artisans lovingly hand-building every one. They could be made in Bangladesh to the same standard but that utterly meaningless "Made in USA
" tag allows them to whack the price up. Outrageous, but I admire their cheek
"The Gibson name is synonymous with quality and today’s actions will allow future generations to experience the unrivaled sound, design and craftsmanship that our employees put into each Gibson product," Juszkiewicz said in a statement.