Iconic guitar brand Gibson could be on the brink of bankruptcy, according to a report.

The company, whose Les Paul and SG instruments have been played by generations of musicians, including stars such as Slash, Bob Marley and Carlos Santana, was founded more than 100 years ago in Michigan.

Gibson's Chief Financial Officer Bill Lawrence recently left the firm just six months before $375 million of senior secured notes were due to mature, according to a report by the Nashville Post earlier this month. He had been working for the company for little over a year before departing.

Gibson, which has annual revenues of more than $1 billion, has another $145 million in bank loans that will be due immediately if those senior secured notes are not refinanced by mid-July, the report said.

CEO Henry Juszkiewicz is thought to be in a race against time to decide whether to exchange the company's debt, look to try and pay it off using his equity or try to declare the company bankrupt.

The U.S.-based company has hired investment bank Jeffries to help with its current financial situation.

On Thursday, Gibson issued a statement that said an ongoing streamlining strategy would soon help it record the "best financial results the company has seen in its history within the next year." It also said the firm would have the ability to pay back the company's debt in whole within seven years.