Gibson Brands Inc., the iconic guitar company, whose instruments have been played by legends such as Bob Marley and Jimmy Page, is singing a sad tune today.
The company is on the verge of bankruptcy and is dealing with a high level of debt. Its expansion into other products over the past few years has not worked out as expected. Gibson also saw the departure of its CFO Bill Lawrence after a relatively short period of service.
The maker of the famed Les Paul guitar has $375 million of senior secured notes which are due to mature in August. The company also has $145 million in bank loans which will become due immediately if the notes haven’t been refinanced by mid-July.
Gibson has sought the services of investment bank Jefferies and is said to be bringing back its former CFO Benson Woo to deal with its financial crisis.
The company said it is working on a new credit facility in addition to a streamlining strategy focused on identifying areas to maximize investments and to reduce less profitable ventures. Let’s hope this helps in repaying the debt and improving financial results.
Most Popular
What to look for when CVS Health (CVS) reports Q3 earnings
Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain
eBay (EBAY): A few factors that helped drive growth in Q3 2024
Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,
CVX Earnings: Chevron reports lower revenue and profit for Q3 2024
Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to
Comments
Comments are closed.