NASHVILLE, TN (CelebrityAccess) – Gibson Brands Inc. has today announced that it will be reorganizing the company to focus its core business on the manufacturing of world-class, musical instruments and professional audio products, and the continued development of its portfolio of iconic, globally-recognized brands, Gibson and Epiphone.
The company has reached a “Restructuring Support Agreement” with holders of more than 69.0% in principal amount of its 8.875% Senior Secured Notes due 2018, and its principal shareholders, that clears the pathway for the continued financing and operations of the musical instruments business as well as a change of control in favor of those noteholders.
The Company’s Gibson Innovations business, which is largely outside of the U.S. and independent of the Musical Instruments business, will be wound down. The wind-down of the Company’s GI Business is not expected to impact the Company’s reorganization around its core Musical Instruments/Pro Audio business.
“Over the past 12 months, we have made substantial strides through an operational restructuring,” said Henry Juszkiewicz, Chairman and Chief Executive Officer of Gibson Brands. “We have sold non-core brands, increased earnings, and reduced working capital demands. The decision to re-focus on our core business, Musical Instruments, combined with the significant support from our noteholders, we believe will assure the company’s long-term stability and financial health.
“We are grateful for the continued support from our employees, customers, dealers, partners and suppliers as we move through the restructuring process,” added Juszkiewicz. “The Gibson name is synonymous with quality and today’s actions will allow future generations to experience the unrivaled sound, design and craftsmanship that our employees put into each Gibson product.”