Gibson Guitars - Poor Quality and High Prices and Bankruptcy

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Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by Buzzard » Tue Apr 10, 2018 4:48 pm

jens5 wrote:
Tue Apr 10, 2018 2:55 pm
Check out the new Eastman SB59 comparison with a Gibson Historic 58 VOS reissue Les Paul. The Eastman is $1839. The Gibson is $4500. Difference?
Amazing, Eastman made one heck of an LP, their selection of pickups is so close that I can't hear any significant difference.

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Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by joeymakesmusic » Wed Apr 11, 2018 8:44 pm

Saul wrote:
Wed Apr 04, 2018 5:14 pm
Fender CEO Andy Mooney: “Gibson’s troublers are all of their own making”

Fender CEO Andy Mooney has stated that fellow guitar giant Gibson, which faces the imminent prospect of bankruptcy, brought about its own financial troubles - and Gibson CEO Henry Juszkiewicz agrees.

In an interview with Forbes, Fender’s head honcho stated, “We've been growing at a faster pace than the industry and enjoying that growth. Gibson’s travails are all of their own making; it’s nothing to do with the state of the industry.”

And Juszkiewicz has taken responsibility for those mistakes, telling the New York Times his plan to transform Gibson into a music lifestyle company “wasn’t a great decision… It didn’t work out very well. I think it was a rational decision, but it turned out to be a very poor decision, and it’s a decision I made.

"It is what it is.”

More info over on https://www.musicradar.com/news/fender- ... own-making
I'm probably late to the party here (and first post! yay!) but I'll share some experiences from traveling across SE Asia last year after taking a sabbatical.

In India, Vietnam, and Thailand, Fender seems to have a much bigger brand presence. Gibson has priced itself out of the market for most consumers.

When I was in India, I looked up gear prices. A basic Fender Squier was around 10,000 INR (~$150). For a lot of young musicians, this was the entry point to the Fender experience.

Gibson had nothing in this range. Fair enough, they want to keep that premium image.

But even among premium guitars, Gibsons were extremely expensive for the locals. A basic Gibson was about 1,00,000 INR ($1,500) which is more than twice the monthly salary of young people here. Fenders were far more affordable, starting at 30,000 ($500).

And of course, new entrants keep chipping at these brands. I saw a brand called 'Vault' created by a local startup that basically licenses tech and designs from top guitar manfuacturers, makes them in-house, and sells them exclusively online. I played a Fender Telecaster replica that was about $150 and played pretty darn good for the price.

I don't know where they're going with this business strategy, but it sure isn't up.
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Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by Saul » Fri Apr 13, 2018 9:15 am

Hi Joey and welcome to the forums :)

It definitely seems like there are way too many similar models in the Gibson lineup. And prices are way too high for the brand to be truly worldwide...as you pointed out even the cheapest models are way too expensive for many people in places like India. Which in a way is good because it leaves room for brands like 'Vault' and many others who provide value for money guitars that are of high enough quality to do the job.

Gibson as a brand will survive but I can't see it doing so in it's present configuration or with Henry J at the helm.
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Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by Miks » Wed May 02, 2018 11:43 am

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Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by Saul » Wed May 02, 2018 11:48 am

Miks wrote:
Wed May 02, 2018 11:43 am
The story continues...:

Gibson, whose electric guitars have been played by stars including Elvis, Keith Richards and Jimmy Page, has filed for bankruptcy protection as it struggles with $500m (£367m) of debt.

http://www.bbc.com/news/business-43967923
It's a shock but I think we all could see the writing on the wall?

In a way this might be a good thing. The brand is still strong and in the right hands it could be turned around. They just needed to get that caustic management out of the way to move forward.
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Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by parametric » Wed May 02, 2018 1:36 pm

Well,

Henry SAID that Gibson was "already awesome" and he wanted it to be "More Awesome" . .

Well, he certainly achieved that - Just not in a good way . .

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Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by Saul » Wed May 02, 2018 1:43 pm

I sincerely hope he is not still going to be at the helm when they exit bankruptcy protection in September!

Gibson have not gone bust. They filed for "bankruptcy protection" which is not the same thing. It simply protects the business whilst they restructure. Getting rid of all the non-music related parts of the business is the big thing as that is sucking money from the profitable side which is guitars...they are actually making money there.

I think the very fact that Henry J thought buying Philips along with the other brands was a good thing clearly marks him as not fit to run a company like this? The core business is strong and he was single handedly destroying it. He needs to be as far away from Gibson Guitars as possible!
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Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by Saul » Mon May 14, 2018 8:12 am

Not sure if anyone noticed this in all the talk of Gibson going under but, this clarifies the situation and puts the whole thing in perspective. This happened on May 3rd but sort of flew under the radar. It's important because all the headlines are "Gibson Goes Bust" but that is not actually true, at least not yet.

NASHVILLE, Tenn., May 3, 2018 -- Gibson Brands Inc. ("Gibson" or "the Company"), announced today that the U.S. Bankruptcy Court has granted, on an interim basis, the Company's first-day motions, which were designed to ensure daily operations continue normally during the Company's pre-negotiated Chapter 11 restructuring. The Court approved, among other motions, the Company's ability to continue paying employee wages and benefits and maintain all customer warranty policies.

In addition, the Court authorized the Company's $135 million debtor-in-possession (DIP) financing. The Court also approved the use of the Company's existing cash management systems and bank accounts, allowing the Company to issue payments and honor any outstanding checks, and to pay key trade vendors that sign a vendor support agreement.

"Today's approval of our first-day motions is encouraging and puts Gibson on a strong footing as we move forward with our reorganization with the support of a majority of our noteholders," said Henry Juszkiewicz, Chairman and Chief Executive Officer of Gibson Brands. "These actions, along with access to new financing, should reassure our employees, customers, dealers, and suppliers that we will continue to maintain daily operations and that it is business as usual for Gibson Brands."

With the support of the majority noteholders on the Restructuring Support Agreement and the Plan Term Sheet, the Company anticipates completion of the pre-negotiated process by the fourth quarter 2018.

The Company filed its voluntary petitions and plan of reorganization on May 1, 2018, in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The case number is 18-11025.

Additional information is available by calling Gibson's Restructuring Hotline, toll-free in the U.S. at 1-844-240-1258. For calls originating outside the U.S., please dial 1-929-477-8085. Email inquiries can be sent to gibsoninfo@primeclerk.com. Court filings and other documents related to the court proceedings are available on a separate website administered by Gibson's claims agent, Prime Clerk, at https://cases.primeclerk.com/gibson.
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Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by Saul » Mon May 14, 2018 8:15 am

Gibson Guitar Maker’s Bankruptcy Won’t Impact Bozeman Acoustic Plant.

A company spokesman says although guitar manufacturer Gibson Brands Inc. has filed for bankruptcy, the Bozeman Gibson Acoustic plant will not be impacted.

Company spokesman Seth Lubove tells the Bozeman Daily Chronicle that despite the move, it should not impact employees, management and production on the ground.

The company employs more than 875 people between its Nashville, Memphis, Tennessee and Bozeman facilities.
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Re: Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by SysExJohn » Fri Aug 03, 2018 4:03 pm

Just to add to the discussion, Music radar has recently published an interview with Henry Jusckiewicz (spelling?) as follows:
https://www.musicradar.com/news/in-dept ... -ever-been.

In case anyone's still interested in the ongoing saga.
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Re: Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by Saul » Fri Aug 03, 2018 8:57 pm

If you grew up playing guitar at any time between the 1950s and the 1990s something special happened when you saw a Gibson in a shop window.

Your heartstrings thrummed and you took a moment to simply stand in the street and wonder what it might be like to own one. Or maybe one fine morning you walked into the shop with a wallet full of notes and actually took the plunge.

The act of owning a Gibson for the first time seemed both a rite of passage and a long-awaited arrival at a longed-for place.
Nothing at all special happened when I saw a Gibson in a shop window or anywhere else. It may have been like that for the author of that article but to assume it was that way for everyone else is delusional. Most guitarists I know simply thought Gibsons were overpriced and over rated and for me that pretty much holds true today.

He really hasn't learned has he?
if we tried to compete with lesser people
Who exactly are these "lesser people"?

Henry Juszkiewicz is everything that is wrong with Gibson and whilst he is still there it's enough reason for a lot of people not to buy their over priced guitars.
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Re: Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by Mimasu » Fri Aug 03, 2018 11:09 pm

Perhaps, as many say, Henry Juszkiewicz rescued Gibson in the mid 80'ies. But now, with a complete lack of self-criticism, he might be the end of Gibson.

I'm not a Gibson guy. And the only 'Gibsons' I've ever played are the Yamaha LP's and SL's. But I'd hate seeing Gibson go Bankrupt.

On the other hand, It's very well possible that another company buys the Gibson brand...... could be very interesting.

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Re: Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by Saul » Fri Aug 03, 2018 11:19 pm

I would also hate to see them go down. I may think they are overpriced but of course I know there are many who don't and it IS an iconic brand. I just think Henry J has alienated so many people both in the trade and amongst the public that the brand is suffering because of him. If he truly cares about the brand and the staff rather than his ego he would step down.
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Re: Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by parametric » Sat Aug 04, 2018 1:26 pm

Same here. Gibson always were a "household name" as far as Guitars are concerned . . .

Perhaps the American "Business Model" is not as wonderful as we have been led to believe - and urgently needs an overhaul?

The CUSTOMER is the source of all profits and prosperity and perhaps it's about time they were elevated to the Number ONE

slot in the pecking order, with shareholders a close (as possible) SECOND?

I think the pompous approach has now been shown to be "unsuitable" . . . .

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Re: Gibson Guitars - Poor Quality and High Prices and Bankruptcy

Unread post by AndrewG » Tue Aug 07, 2018 3:35 pm

parametric wrote:
Mon Jan 29, 2018 6:03 pm
A truly depressing account Saul . . .

The "Job Interview" is even more depressing
Q "'Well... what do you want to be, as a brand, that you think you're not already?

A '"'Even more awesome. We're already awesome. We just want to be more awesome.'

"'
What is it with this word "Awesome"?

As I've said before in these forums, The FLOOD, or possibly the Parting of the Red Sea

might just qualify as awesome.

The rantings of a pipqueak CEO don't come close - along with pretty much MOST of Human endeavour

for the last 8000 years or so . . . .

Perhaps he's referring to the size of the DEBT the management team under HIS guidance,

has managed to accumulate?

That might be described (by the prospective "receivers") as awesome?

Gibson was a guitar company (so I thought). This current desire to cover all bases largely doesn't work -

unless you happen to be Yamaha - who aspire to be the best in ALL they do - and mostly SUCCEED (IMO) -

but I view them very much as a one-off, at this.

We have seen this "diversify" disaster before here in the UK . . .

If you are old enough, you might remember "Biba"?

A boutique started in the 60s that set the standard and created a whole "look" and genre -

and was incredibly successful.

Then - into the 70s, it purchased the old Derry & Toms department store in High Street Kensington - and moved in.

The Roof "Rainbow Restaurant" became famous - and the place to be . . . . The internal decor was 20s

(or was it 30s?) style - and they went from strength to strength.

THEN they diversified. Biba Baked Beans, Biba Soapflakes, Biba Paint and many other non-clothing-related lines.

(Those mentioned I actually saw in friends' houses) 8O

Soon after, they went to the wall . . . . .

The Swiss Army Knife (IMO), when applied to business is really not good.

When you split your "strength" - you usually end up NOT doing ANY component particularly well . . . .

NOTHING undoes screws so well as . . . . . er . . . a screwdriver (IYSWIM)

Mr Gibson would do best to take his finger out of his arse, get on with his work and DEAL with the problem,

instead of being a part of it. (And he should definitely STOP reading his own press releases -

or ANYTHING for that matter, that contains the word "Awesome") :lol:

I mean - does a company really NEED someone on a 7 figure(?) salary who has spent all day coming up with:
Even more awesome. We're already awesome. We just want to be more awesome.'
I think NOT.

para
I'm horribly late to this (only signed up today), but I should point out that Biba bought the old Derry & Toms department store, not Barkers. I used to work around the corner in Kensington Church Street and also in and was a frequent visitor to Bibas in the early '70s, the decade that fashion forgot...
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