Gibson rises from the ashes & announces new CEO

Legendary US guitar maker Gibson Brands has hired a new CEO and senior management team, as it plans to emerge from Chapter 11 bankruptcy protection on November 1.

The Nashville-based company declared Chapter 11 in May burdened by a $500 million debt caused by a disastrous push into home entertainment and headphones.

Its new head is president/CEO James “JC” Curleigh, former president of Levi Jeans brand at Levi Strauss who also pulled that brand back to a strong position.

He is joined by chief merchant officer Cesar Gueikian, a heavy rock guitarist and founder of $1.5 billion asset management firm Melody Capital Partners;Kim Mattoon as chief financial officer and Christian Schmitz as chief production officer

Curleigh hailed “the beginning of a new era for Gibson to build on its proven heritage and iconic status” and promises that his experienced team will restore it to its golden era.

“As a musician, I have always treasured my Gibson guitars and I have the utmost respect for the iconic Gibson brand and those who choose to play Gibson guitars,” he emphasised.

“Gibson has been a pioneer of craftsmanship and innovation in musical instruments and has been synonymous with shaping the sounds of generations and genres for more than 100 years.

“I am very honoured to play a leading role with this iconic brand.”

It’s the end of the tenure by CEO Henry Juszkiewicz, who along with Dave Berryman purchased Gibson when the company went through a dip in the 1980s.

As guitar sales dropped, Juszkiewicz expanded to a guitar lifestyle market, taking the punt of going into debt to buy up electronics companies.

Revenue increased but profits dropped.

When it went into Chapter 11 in May, Gibson already had a reorganization plan in place to keep operating with $135 million in loans

Earlier this month the US Bankruptcy Court approved Gibson’s plan to clear $500 million of debt and use $70 million to work its plan to rebuild.

Juszkiewicz will stay on as a consultant for one year.