Iconic guitar brand Gibson could be facing bankruptcy

If there’s a symbol that represents the crux and glory of rock n roll in its entirety, it’s the humble Gibson Les Paul. The guitar brand, over its 116 years of business has become a staple in the live show, recording and writing process of innumerable artists, transcending its humble beginnings as a vehicle for the moving riffs and melodies of the blues.

Brought to the foreground by legendary ax masters like Jimmy Page, Santana and Slash, all budding guitarists dream of one wielding an SG or Les Paul, harnessing its power.

Now, the legendary company may be facing serious financial struggle, with the Nashville Post reporting that the company may be “running out of time”.

The company, which was founded in Michigan over 100 years ago has faced internal tensions for a while now, with CFO Bill Lawrence leaving the company after less than a year on the job. According to the report, the company turns over an annual revenue of more than $1 billion which they describe as “far from normal”.

It is also detailed that the company will owe $145 million in bank loans that were issued in 2013, if a range of senior secured notes are not refinanced by July 23rd.

Gibson Brands CEO Henry Juszkiewicz has outlined the company’s plans, saying that they’ve “been monetizing assets like stock holdings, real property and business segments” however they’ve not “achieved the level of success we expected”.

Reassuringly, he also stated that it’s their main priority to restore financial success within the business and is sure they’ll be on “the best financial terms in the refinancing of our company.”

This article originally appeared on The Industry Observer, which is now part of The Music Network.