Nashville-based iconic guitar maker Gibson Brands says it expects to emerge from bankruptcy protection next month, now that the U.S. Bankruptcy Court for the District of Delaware has officially approved Gibson Brands Inc.’s reorganization plan. Gibson CEO Henry Juszkiewicz will step down and move into a consulting role. His successor has not been publicly revealed.
As previously disclosed, Gibson’s plan of reorganization will allow the company’s Musical Instruments and Professional Audio businesses to continue to design, build, sell, and manufacture Gibson and Epiphone guitars, as well as KRK and Cerwin Vega studio monitors and loud speakers. The plan provides funding for the musical instrument and professional audio businesses, supports the company’s key vendors, and suppliers, and provides for the restructuring of the company’s balance sheet.
Gibson Brands filed for bankruptcy protection in May. Along the way, the company has made several cost-cutting moves, including selling property in both Nashville and Memphis, cutting jobs, and shutting down an electronics division.
“Focusing on our iconic brands and core musical instruments, Gibson is poised to continue as one of America’s premier manufacturers of musical instruments with a clear path that will benefit our customers, business partners and employees over the long term,” the company’s chief restructuring officer, Brian Fox, said.
Fox also says that post-bankruptcy, Gibson Brands will be “a stronger company with essentially no debt and a bright future.”
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