Find tour dates and live music events for all your favorite bands and artists in your city! Get concert tickets, news and more!


Gibson Cuts Staff As Its Hit With Credit Downgrade

1627 0

NASHVILLE, TN (CelebrityAccess) — The financial situation for guitar manufacturer Gibson continued to deterioriate this week after ratings agency Standard & Poor’s downgraded the company’s credit, making it less likely they will be able to meet their debt obligations.

“With multiple maturities looming and operating weakness ongoing, we believe Nashville-based Gibson Brands could default on its debt obligations over the next six months,” Standard & Poor’s officials said in a note to clients obtained by the Palm Beach Post. “We are lowering our corporate credit rating to ‘CCC-’ from ‘CCC.’”

The new rating was based in part on S&P’s view that the iconic guitar maker is increasingly likely to experience a default or restructuring event before the end of the year.

Along with the downgrade, the Nashville Post reported that Gibson has also laid off 15 employees from their custom shop, a unit within the company that makes meticulous recreations of vintage guitars and handles custom, one-of-a-kind orders for the company.

Gibson Chief Executive Henry Juszkiewicz told the Post that the layoffs were part of a “broad initiative throughout the company to prepare for our refinancing” and come just weeks after Gibson announced the hiring of Benson Woo, a restructuring specialist, as CFO for the company.

Related Post