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Gibson’s struggle to return to the electric guitar market after bankruptcy

What happened to Gibson?

To explain a bit what happened to Gibson, we must contextualize the current state of the electric guitar market. With the development of the Internet, new musicians and young fans have stopped acquiring this instrument in the way it was a few decades ago, since there are currently a series of resources to produce sounds similar to an electric guitar but at a lower price. cheap and all in a more practical way. To this is added the great diversification of the market that occurred thanks to the increase in purchases on the web.

This being the case, the company began to experience a period of low sales, which led the brand to try to reinvent itself in 2014, acquiring a multinational company that was part of Philips, in order to open up the sale of electronics products. of consumption. This investment cost the brand 135 million dollars and was classified by many as reckless, which ended up leaving the brand in debt, reaching the figure of 500 million dollars.

This led to a confrontation between the managers, having parties interested in selling the company, while others wanted to invest new capital, but without the participation of some shareholders such as Henry Juszkiewicz, who was the CEO and was responsible for the collapse. in 2014.

After a legal conflict, a judge has declared authorization for the company to operate again with a new board of directors and undergo a total reorganization process, which has left many musicians and fans hopeful, trusting in a series of positive elements and participation from a team of musicians committed to the brand, beyond the commercial.

 

Nat Zilkha and a team of musicians committed to Gibson

To carry out Gibson’s re-launch and reorganization process, vocalist Nat Zilkha, who participated in the New York band Red Rooster, will be one of those charged with bringing Gibson back to its glory days. 

Zilkha will be part of a team made up of musicians, guitarists and other artists related to the world of rock and roll, who feel a commitment to this brand, as it was part of its development within the musical genre. The vocalist said that he feels he is taking on a great responsibility in trying to bring the American brand back to what it was in the past. Also, he confirmed his high level of empathy and relationship with the product, in this case, the best electric guitar ( Here you can find some options to buy )  and, that was what led him to be interested in joining this restructuring process .

The name of the new Gibson CEO had not yet been revealed, but among the information released, it was said that the new company will have about 800 employees and that it will focus on the production of electric guitars, in the best style of the golden age of the brand.

The investment funds to resurrect Gibson come in part from the KKR group, which decided to establish some conditions before making a new investment and is committed to projecting an image of trust and protection of the brand so that its image in the market is recovered. .

 

 

 

Other positive stimuli

Returning to the issue of the crisis in the electric guitar music market, for the relaunch of the brand, reference has been made to some important events, such as that some world-famous musicians are using the guitar again, taking it to rhythms such as pop, such is the case with Ed Sheeran and Taylor Swift. Experts affirm that this does not determine the success in sales, but it does contribute to a leveling off in consumption, as new young people are attracted to acquire these musical instruments.

Expectations for Gibson to emerge from bankruptcy are quite high and although the market is not necessarily at its best, the brand is expected to reposition itself in the sector, serving as support in the creative process of thousands of artists worldwide . 

For this, the brand returns to the sober and classic of its style, offering a very promising catalog, whose first images have already been released and have left users eager to acquire the various models. In this way, the brand writes a new chapter in its history.

 

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