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Gibson Faces Financial Questions.


tim gueguen

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I can't say I feel sorry for Gibson as a company.
I sympathise with the guys on the shop floor building the guitars
, but the company deserves anything coming its way.

 

 

I agree about the workers and the hard times coming their way. I can't agree about the company though - I think they made some wrong business and pricing decisions and i generally don't feel "sorry" for companies. I do think it would be odd to find the parent company of so many classic designs gone - It would be one thing if the designs were obsolete, but clearly they are very much practical to this day. And I would like to see the company that invented those still produce them

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I blogged about this this morning after reading the article yesterday (thanks Frets!).

 

 

I just can't understand how any company can be facing financial questions from their lenders while at the same time having arguably the most coveted name recognition in the market, charging more for their products than their competitors, AND having such bad feedback from it's employees. HTF can you be in financial turmoil when you've been getting paid more for your products and clearly not investing significant portions of those earnings in your workforce?

 

 

Just because your product costs more does not mean your product sells more...

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A couple of years ago I posted an April Fools joke saying that China had bought the Gibson brand, and was going to sell the guitars currently being made as fakes legitimately. Could it actually come to pass?

 

 

Well, "China" isn't interested in buying guitar companies. However if the company does go up on the open market, I bet there will be a few Chinese companies making bids...

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I blogged about this this morning after reading the article yesterday (thanks Frets!).




The Board of Directors was dissolved a few years ago...potentially in violation of their loan covenant.




See, but the idea would be to dissolve the Gibson corporation and simply buy their intellectual property and trade dress.




Just because your product costs more does not mean your product sells more.
..

 

 

Yeah, I think most people understand that, but here are the top 10 selling electric guitars according to the entire Musiciansfriend.com inventory. In addition to having the best selling guitar, Gibson currently has a total of five in the top 10:

 

Electric GuitarsResults 1 - 20 of 1958 Display 20 per page Display 40 per page Display 60 per page Best Selling Brand

 

COMPARE

Gibson Les Paul Studio Electric Guitar

The arrival of the Gibson Les Paul Studio Electric Guitar in 1983 offered guitarists all the essential elements of a Les Paul Standard, including a...

 

Buy New: $799.00 - $1,319.00

 

Buy Used: $1,055.20

 

 

 

 

COMPARE

Fender American Standard Stratocaster Electric Guitar

 

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Yeah, I think most people understand that, but here are the top 10 selling electric guitars according to the entire Musiciansfriend.com inventory. In addition to having the best selling guitar, Gibson currently has a total of five in the top 10:

 

 

A list from a single retailer doesn't mean much. For all we know, that is a list driven by paid placements. MI Pro did a retailer survey in 2009 polling 100 randomly selected stores and here were the results:

 

Electric Guitar Under

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See, but the idea would be to dissolve the Gibson corporation and simply buy their intellectual property and trade dress.

 

 

If I'm not mistaken, this is how the CBS/FMIC changeover worked in 1985. Bill Shultz and other Fender employees acquired the Fender name, trademarks, patents, etc. as well as (maybe) the remaining inventory, and CBS liquidated everything else (factory equipment and real estate).

 

I don't know much about these things, but it seems right now, unless a miracle occurs for them, this is what will likely happen with Gibson. Unless the owner/CEO decides to hang on to the bitter end, and the company's creditors foreclose on them. God knows what happens after that.

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If I'm not mistaken, this is how the CBS/FMIC changeover worked in 1985. Bill Shultz and other Fender employees acquired the Fender name, trademarks, patents, etc. as well as (maybe) the remaining inventory, and CBS liquidated everything else (factory equipment and real estate).


I don't know much about these things, but it seems right now, unless a miracle occurs for them, this is what will likely happen with Gibson. Unless the owner/CEO decides to hang on to the bitter end, and the company's creditors foreclose on them. God knows what happens after that.

 

 

I definitely wouldn't't like to see the Gibson name go to auction, what a disgrace that would be. Nice sig BTW...

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It's really not a big deal, so I don't know what all the angst is about. After all, Gibson has been bought and sold before, and the brand has survived. I believe that there is enough goodwill appended to the Gibson name that it is in little danger of becoming extinct...

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Regardless of their operating structure these are the trademark signs of a company in financial trouble.

 

...here are the top 10 selling electric guitars according to the entire Musiciansfriend.com inventory.

 

:rolleyes:

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Well, "China" isn't interested in buying guitar companies. However if the company does go up on the open market, I bet there will be a few Chinese companies making bids...

 

 

It was an April fool's joke. The IP and brands of a number of American companies had been passed to China in return for China continuing to buy US government bonds. As an April fool's joke, I didn't think it necessary to maintain too much realism!

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I think its time for a change in management over there but I don't think Gibson name will ever go away, somebody would buy them and inject a bunch of cash into them, like Warren buffet or maybe even the USA taxpayers!

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so... now *everyone* hates Henry. why don't they just show up at his office and tell him it's time to leave?


if you got a few of the big guys from down in the factory to escort him out...

 

THAT I would LOVE to see! Henry thrown out on his butt...couldn't happen to a nicer dictator!

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so... now *everyone* hates Henry. why don't they just show up at his office and tell him it's time to leave?


if you got a few of the big guys from down in the factory to escort him out...

 

 

That's the problem. No one can make him leave since he is the owner. He doesn't answer to anyone.

He can run the business into the dirt and nothing can be done to stop it. That's apparently what's happening now.

 

It's a shame that Gibson doesn't have a guy like Paul Reed Smith running the place.

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