Gibson Files
for Bankruptcy

Gibson Brands filed for Chapter 11 bankruptcy protection today.
An article filed by Bloomberg stated that bankruptcy would offer Gibson protection from creditors with a turnaround plan that "gives some of the company's lenders equity ownership."

Under the plan, senior secured note holders will help Gibson pay off outstanding loans in exchange for an equity stake in a new company. Current stockholders would be replaced by a new ownership team. That includes Henry Juskiewicz, the company's CEO.

Juszkiewicz will stay on in a consulting role under a one-year contract.

The filing actually came in the form of 12 separate filings for brands under the Gibson umbrella, including Baldwin Pianos, Cakewalk, Wurlitzer and Gibson Innovations USA. The latter represents Gibson's consumer electronics brands, established in 2014 after the purchase of WOOX Innovations and Phillips. Those leveraged purchases have been reported as a key to the company's financial challenges. According to court documents, Gibson Innovations will be liquidated.