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My Trading Feedback | You Bring The Band
Just because you're paranoid, don't mean they're not after you(formerly miserneil)
Trade shows used to be about trade buyers - which they still are - but this is even more about the end consumer than it ever was.
Imagine how many "we would do a Gibson review, but, er, they aren't here.."
It is not just Gibson that is struggling though.....
Quote - "Guitar Center is minutes from default and downgraded to junk status. Gibson is liquidating, also minutes from default and downgraded. Fender closed their EU HQ. Carvin is gone after over 50 years. Marshall doesn't even have an amp designer. Many more brands will not survive this phase"
Err Marshall do have amp designers and they're also making good profits with a healthy £8 million cash reserve and no debts. But even they have apparently booked a smaller stand at this year's NAMM than they traditionally have.
I'm not a stockbroker either, but the writing does appear to be on the wall. This is from last year, but I haven't heard anything that would indictate they've magicked half a billion dollars up from somewhere yet...
https://www.thestreet.com/story/14280618/1/gibson-guitar-may-default-if-company-can-t-refinance-its-debt.html
Of course if you're the owners then perhaps a better strategy would be to hang onto Philips, if it's profitable... and sell off Gibson.
"Take these three items, some WD-40, a vise grip, and a roll of duct tape. Any man worth his salt can fix almost any problem with this stuff alone." - Walt Kowalski
"Only two things are infinite - the universe, and human stupidity. And I'm not sure about the universe." - Albert Einstein
PMT in Nottingham are in danger of that, they’ve got all the big dollar stuff. But when I’m gigging. The cost of strings, plectrums, cables, bits and bobs and servicing amps runs to like £400 a year or more. Look at HotRox. They’ve ridden out the last recession purely by offering a comprehensive range of pedals and pedalboard bits. The very stuff that a lot of retailers ignore.
i probably think all the business comments here are right about fattening up the bottom line and selling off bits to pay debt later in the year.
sadly guitars are a small part of their problems these days.
These events are chuffing expensive to participate in and I am guessing that alternative marketing channels (FB, yt, etc) may be more cost effective. The imperative to attend national/international trade shows to maintain a presence on the national/world stage is less clear these days imo
i don’t think Gibson Guitars will disappear anytime soon in real terms, though maybe the guitar division of Gibson may come under new corporate ownership....... bet your life if it did ever come up for grabs Uli Behringer would buy it!
Their big competitors would probably be out as they already do it all, so the best bet would be a Chinese company who want the brand.
They also apparently own a majority stake in TEAC, and a controlling stake in Philips...
Crazy, crazy acquisitions. Just pay the tax next time Gibson!
With 500 million in debts and revenue of 1.7 billion the company mostly needs to really hammer down it's costs to service and run down the debts.
Not going to NAMM (a big jolly for most people who go, like most industry events) will be as much sending a signal to cut expenses as it is a sign of disaster. After all, there is no need for more awareness of Gibson in the guitar world?
FWIW, not going to NAMM *is* a big deal for any of the big guns. Its a sign of weakness, its a sign that things aren't good. As a result, this will reflect within the market - I'm not talking about us, the consumers, I'm talking about the bigger picture. NAMM isn't just about showcasing or raising awareness, its about showing the music industry your corporate face too. A lot of dealer/distributor activity goes on at these events (NAMM and Frankfurt) and the sales generated are highly significant parts of the overall yearly sales totals for most manufacturers. To not be there will cost them sales - no question - at a time that they can ill afford it.
In my opinion this is either an ill-judged cost saving excercise driven by someone who doesn't know the industry or a sign that things are *REALLY* bad.
Gibson's current owners are clueless. If they didn't have the heritage of the brand and its iconic designs to cover their appalling management and terrible product decisions they would have gone down the pan years ago. What have they done that's new in the last twenty years that's been really well-recieved?
For what it's worth I felt the same about Marshall until very recently - but they seemed to have turned it around now, they're profitable and are in surplus, not debt. The difference is that they're a tiny operation by comparison.
"Take these three items, some WD-40, a vise grip, and a roll of duct tape. Any man worth his salt can fix almost any problem with this stuff alone." - Walt Kowalski
"Only two things are infinite - the universe, and human stupidity. And I'm not sure about the universe." - Albert Einstein