The company, which counts Slash, Jimmy Page, Pete Townshend, Lenny Kravitz and hundreds of other well-known guitarists as players of its iconic Les Paul model, requested court protection from its creditors on Tuesday, saying it has support from many of them for a deal that would allow the company to survive.
The company says that after bankruptcy it will continue to sell musical instruments and equipment, but will get rid of its Gibson Innovations unit, which makes Philips-branded headphones, speakers and other accessories. The company has a $375 million bond coming due this year, along with $185 million in other debt coming due later in the summer.
They expanded their brand too far, which is why they're in this mess. At least they'll still make Les Pauls, unless they eventually sell that brand off, like Sears did with Craftsman.
Source: USA Today