Gibson bankruptcy??

walrus

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translates to me as HJ is sending a message to his creditors. I don't think it matters that the savings are a drop in the bucket.

He's also sending a very different message to his employees, particularly those in the Custom Shop...

walrus
 

dreadnut

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What's that sound? Orville Gibson is spinning in his grave...
 

Westerly Wood

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I still think the Yamaha buying Gibson is a great idea.
 

Westerly Wood

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"Gibson CEO Henry Juszkiewicz said the staff reductions are “part of broad initiative throughout the company to prepare for our refinancing,” which calls for Gibson to retire $375 million in five-year senior secured notes before July 23. If the company cannot hit that deadline, at least $145 million in loans also will come due."

if they dump the elctronics biz, does that help at all?
 

fronobulax

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He's also sending a very different message to his employees, particularly those in the Custom Shop...

walrus

Have you, by any chance, ever worked for a large company that is publicly held or has outside investors? Employees don't mean squat. It is rare that any decisions are made on the basis of what the employees might think is best for them or what anyone else might think is best for the employees. So there is nothing new or unexpected in the message "you're expendable and we don't care".
 

fronobulax

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"Gibson CEO Henry Juszkiewicz said the staff reductions are “part of broad initiative throughout the company to prepare for our refinancing,” which calls for Gibson to retire $375 million in five-year senior secured notes before July 23. If the company cannot hit that deadline, at least $145 million in loans also will come due."

if they dump the elctronics biz, does that help at all?

Article says they have already started "trimming" the electronics and have sold Cakewalk, the recording software, but there is no indication whether that will be enough. Ego might be a factor. Since HJ started the branch into electronics, at some point sales is an admission of failure. We definitely see a lot of weird nonsense from people who will do almost anything but admit they might have made a mistake.
 

walrus

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Have you, by any chance, ever worked for a large company that is publicly held or has outside investors? Employees don't mean squat. It is rare that any decisions are made on the basis of what the employees might think is best for them or what anyone else might think is best for the employees. So there is nothing new or unexpected in the message "you're expendable and we don't care".

Didn't say it was new, just saying it sucks for those employees. As it always does when this happens (all too often) at any company.

walrus
 

Quantum Strummer

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interesting, Rainbow Guitars here in Tucson, the main guitar shop here that sells nearly the entire Gibson acoustic and electric product line...

Hey, I just bought a Gibson from Rainbow! Arrived this morning. It's a 1971 LP Recording model, though, so none of my $$ are gonna help keep the creditors away.

-Dave-
 

dreadnut

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I'd like to see Heritage buy the Gibson name and bring it back to Kalamazoo.
 

txbumper57

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Have you, by any chance, ever worked for a large company that is publicly held or has outside investors? Employees don't mean squat. It is rare that any decisions are made on the basis of what the employees might think is best for them or what anyone else might think is best for the employees. So there is nothing new or unexpected in the message "you're expendable and we don't care".

I can see it now, I'll bet Fender was on the phone with some of the Former Gibson Custom shop employees with in minutes of the announcement of the layoffs. In about 6 months look for The Fender Custom Shop's first venture into a "Les Paul" style guitar, LOL! It really sucks for those employees but I am sure they will all have places to go shortly. It is not that often that an influx of skilled artisans from the world of Custom Shop Guitar Making become available at the same time. That is a wealth of knowledge that I am sure any guitar manufacturer would be ecstatic to add to their workforce. Just an Opinion as always.


I'd like to see Heritage buy the Gibson name and bring it back to Kalamazoo.

While I don't know if this is a possibility I would love to see it happen. That would be kinda cool to see things come full circle!


TX
 
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Westerly Wood

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oh and if you are a Purist, dude just totally threw you under the bus...It is not that dude is a crappy leader, but more that you suck.

Gibson CEO Henry Juszkiewicz has continued his defiant response to reports of Gibson’s potential bankruptcy, blaming the company’s financial troubles on “problems with the guitar retail industry” and "purists".
 

fronobulax

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His comments do make me wonder whether there are Guild purists :) and, if so, are they a drag on the market and innovation?

(Rhetorical question or veer? You decide.)
 

Westerly Wood

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His comments do make me wonder whether there are Guild purists :) and, if so, are they a drag on the market and innovation?

(Rhetorical question or veer? You decide.)

well yes. if all i am interested in are guild dreads pre 1974 then i have to be in that camp, and not at all helpful to the current brand.
 

ClydeTower

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Interesting discussion/interview about what's up with Gibson :

 
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Quantum Strummer

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In my case it has nothing to do with being a "purist" (in nature "pure" == "inbred") but rather that there are lotsa fine old guitars out there that I prefer over anything new. I find the notion that I should buy a new anything because of brand allegiance to be ridiculous. To start with…I have no brand allegiance. :)

-Dave-
 

Kitarkus

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In my case it has nothing to do with being a "purist" (in nature "pure" == "inbred") but rather that there are lotsa fine old guitars out there that I prefer over anything new. I find the notion that I should buy a new anything because of brand allegiance to be ridiculous. To start with…I have no brand allegiance. :)

-Dave-

I agree.

By the original poster's thought (on this topic) I too would be in 'that camp'...although I did buy a (used) 2012 Guild this year. I am not watching Guild's introductions with a mind-set in anticipation of a new Guild purchase. I'm just not. That M-20 introduction was unique and made me pause....but I didn't pull the trigger. So by some accounts, Henry's comment blaming the guitar industry and purists has some teeth. That said, the CEO of any major corporation must understand the challenges within their respective market and place themselves in the best possible position. Gibson did just the opposite. The guitar biz...especially among historic brands with legacy products....must at a minimum maintain their quality control. It must be hard to sell expensive legacy products in an ever changing market....it puts you at the mercy of forces which may be beyond your control.....while your product maintains (or should maintain) some general sense of continuity. Gibson did attempt to 'reach' (both metaphorically and literally) new buyers with robo-tuners, extra wide necks on electrics, candy colors, and other imo misguided marketing gimmicks.... but they also neglecting the quality of their core legacy goods at the same time. Stupid stupid stupid. Gibson's bread is buttered with electric guitars....acoustic guitars are necessary.....but a necessary evil to the bean counters. If Gibson expects to court only young and/or new guitar buyers with lesser guitar knowledge and/or lesser guitar expectations....they will continue down the rabbit hole. The old timers, the artists, and the memories of a sound, look, or feel of a guitar model is what sells a lot of guitars.

I did just purchase my first new acoustic in my life from 'another brand'. All the factors on this particular purchase just worked for me including (a) purchase price new (b) re-sale marketability and return on investment if necessary (c) known/believed consistency of quality in the marketplace (d) personal desire for this model. There are imo very few guitars that have a, b, c.....and even fewer that also include d.
 
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AcornHouse

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His comments do make me wonder whether there are Guild purists :) and, if so, are they a drag on the market and innovation?

(Rhetorical question or veer? You decide.)
Applying Henry Js logic to Guild; then, yes, there may be an issue about Guild purists (like me) not buying new production. But, it’s the consumer who decides what to buy, and if you’re going to put out inferior product (not necessarily Guild, but there have been issues), or change the specs to something that I don’t want (yes, I’m talking to you, Cordoba!), then, no, I’m NOT going to be buying any new production Guilds any time soon.

So, back to Henry J, if you don’t produce what people want, and refuse to listen, then it’s his pigheadedness that’s at fault. You can’t blame people if they don’t want what you set before them. (Or if you try to force robo-crap on them.)
 

AcornHouse

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Very timely with a comment about Gibson purist and going bankrupt at the beginning.
 
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