Gibson Money Woes – Bankrupt

How does an American Icon die? With 520 Million dollars of debt. Gibson’s main problem is their Guitars. Gibson builds guitars that are insanely over priced for what you get. An average new Les Paul Standard is street priced around $3200, Their less expensive Les Paul Studio Will run you around $1600. While Gibson designed the Les Paul in the 70’s they totally lost their way, Ibanez. Aria made better guitars at a lower price. In the 90″s Gibson’s quality was still very suspect. I purchased a 1999 Les Paul Studio that came equipped with a paint run down its neck and a pickup that fell out because it was never attached. However, by 2005 the quality had greatly improved. Of course, they are Gibson so in 2007 they purchased the Garrison guitar plant in Canada. Garrison was making the most innovative acoustic guitars in the world. They featured a injected polymer bracing system that allowed for a guitar to be built start to finish in less than a day, and they were awesome guitars. So naturally Gibson killed the injection system went back to the old traditional way of building guitars and made some spectacularly average guitars called the songwriter series. By 2009 Gibson had shuttered the New Foundland factory. Then around 2014 Gibson started making Guitars that no one wanted or asked for. Do you recall the 2014-2015 Gibson introduced the robot tuners that no one asked for, wanted, and top it off they did not really function? How about the Gibson Firebird Zero, the M2 nice student guitars but let’s face it for the same price you can get a very high quality imported guitar.
Gibson really has just made critical errors after critical error, compiled with a shrinking guitar market. The real problem is “Gibson took their proverbial Eyes off the Prize” In a shrinking musical instrument market they tried to diversify into entertainment areas. Reminds me of CBS ownership of Fender. CBS may have known how to make records and Television, but they had no clue how to make a Guitar. Gibson knows how to make a guitar but has no clue how to run an entertainment business. Gibson should have focused on the Guitar business. Making guitars that people want, and at a affordable price.

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