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Mergers: Gibson Brands or Branding 2
  • Vitaliy_KiselevVitaliy_Kiselev

    In continue of our old topics - https://www.personal-view.com/talks/discussion/1688/branding http://www.personal-view.com/talks/discussion/6543/corporations-become-bigger/p1

    At 2011 Gibson Guitar Corporation had:

    • Baldwin
    • Epiphone
    • Kalamazoo
    • Kramer
    • Maestro
    • Slingerland
    • Steinberger
    • Tobias
    • Valley Arts,
    • Wurlitzer
    • Garrison Guitars
    • Stanton Group
      • KRK Systems
      • Stanton DJ
      • Cerwin Vega

    At 2017 Gibson Brands own:

    • Gibson
    • GOGEAR
    • Baldwin
    • Cakewalk
    • Cerwin-Vega!
    • Dobro
    • Epiphone
    • Esoteric
    • Integra
    • Kramer
    • KRK Systems
    • Maestro
    • Onkyo (became major shareholder in 2017 only)
    • Pioneer (as Onkyo owns it)
    • Philips Audio And HE (former WOOX Innovations, 2014)
    • Steinberger
    • TASCAM (pro department of TEAC)
    • TEAC (bough for $52 millions only, including Tascam, 2014)
    • Tobias

    It is interesting that they got recently TEAC, Onkyo and Philips.

    And also around $520 million in debt coming due in 2018 (and it is in junk status already) :-) Company has 10 times debt/EBITDA ratio.

    So it was all banks money they used.

    In recent month they started active sell out of property (and also part of Onkyo shares), but it is not clear if it'll manage to survive next 1-2 years.

  • 4 Replies sorted by
  • Vitaliy_KiselevVitaliy_Kiselev

    Gibson Brands Inc. filed for bankruptcy with a turnaround plan that will give some of the company's lenders equity ownership of the iconic American business that has supplied guitars to B.B. King, Elvis Presley and Pete Townshend.

    A restructuring support agreement with senior secured noteholders will help it repay bank loans while going through a "change of control" transaction, according to papers filed Tuesday with its Chapter 11 bankruptcy in Delaware. The petition estimated up to $500 million in debt, and the lenders have agreed to an operating, or "debtor in possession," loan of up to $135 million to fund operations.

    Gibson, founded in 1894, sells more than 170,000 guitars annually in 80 countries. Its guitars are U.S.-made, with factories in Nashville; Memphis, Tenn.; and Bozeman, Mont. It also sells studio monitors, headphones, turntables and other musical instruments. Units also include the company's Baldwin Piano business. All told, the music instruments business employs at least 875 people, according to court papers.

    Its Gibson Innovations business, acquired in June 2014 from Koninklijke Philips NV, was the source of its financial woes. The business faced significant sales declines due in part to a loss of credit insurance overseas. The unit will be wound down, Gibson said.

    In short it means possible Philips Fidelio brand and products destruction. This alone is extremely bad, especially for their X2HR headphones.

    Actually, they got best headphone measurement and design team in industry and managed to fuck it.

    Can also check other our topic - https://www.personal-view.com/talks/discussion/18354/cakewalk-is-down-tascam-can-follow-soon

  • Vitaliy_KiselevVitaliy_Kiselev

    Very interesting comment from former Philips branch worker

    In fact when he purchased our company (I am an employee of GI), top management fired hundreds of people, then Henry fired the top management to “take control” and then shit hit the fan.

    In fact there was absolutely no direction where the company is headed to. Like what are the products we are focusing on, investing in new categories or features and so on.

    Then more and people were fired, many left the sinking boat because since last summer we ran out of work. To be honest it is boring when you sit all in your office and just look out of the window, even though you get your paycheck.

    I think he underestimated not only the market (which is shrinking), but also that you can’t fire people in Europe because we are protected. And those people in Europe are partly quite expensive.

    We are currently in discussion with a Chinese company to take us over. You can not sell products in stores, and then stop giving support in case of warranty claims. That’s not how this planet works. Philips may need to take over at some point.

    From https://www.strata-gee.com/gibson-brands-files-bankruptcy/

    You can literally see "effective management" here aka idiots running company.

  • Vitaliy_KiselevVitaliy_Kiselev

    Update on situation with Onkyo

    “As of September 2017 (and that date is key because it predates any and all announcements issued by Gibson and TCL), Onkyo USA is a separate, private company,” said Sausto. “Onkyo USA’s business does not change and remains unaffected by recent announcements by Gibson and/or TCL.”

    TCL now has “the exclusive global usage rights (except Japan) of the Onkyo trademark (subject to certain exceptions), to develop, manufacture, and sell a variety of AV products such as headphones, small speakers, and TV speakers including standalone soundbars for TVs. In addition, TCL Multimedia will apply its proprietary artificial intelligence (AI) technology to develop innovative high-end smart AV products that offer added-value to customers.”

    So, as far as I understand, Onkyo USA marketing guys will be ok. All production and actual development will be done by TCL.

  • Vitaliy_KiselevVitaliy_Kiselev

    In a gesture of goodwill, Gibson and its President and CEO, James “JC” Curleigh, have granted possession of the Oberheim brand and intellectual property back to its original owner and company founder, synthesizer pioneer Tom Oberheim.

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