Gibson, the iconic guitar company that has been selling musical equipment for over 100 years, is facing bankruptcy and has began scaling back its workforce.

We’ve been keeping you updated on the sad news relating to the flailing profits of one of the guitar world’s foremost manufacturers. First it was set for closure, then Juszkiewicz assured that the debt was run of the mill and then it seemed that the situation appears more likely a ‘internal coup’ in a bid to wrestle ownership.

Juszkiewicz, who has been the CEO of Gibson since 1992 having acquiring the company in 1986, knows all to well of the difficulties involved in retail, now more than ever before. Gibson, a brand that have been long time favourites for so many musicians, unveiled news last week that the company was struggling to meet its obligations on $375 million worth of debt. According to multiple analysts and investors, the default risk considered high and would likely result in bankruptcy.

Now, as the company attempts to scale back costs, has made their first redundancies by laying off 15 people at a local plant in Nashville, Tennessee. The Nashville Post are claiming that the parent company of Gibson Guitars let the workers of Elm Hill Pike plant go on Monday.

Gibson CEO Henry Juszkiewicz said the staff reductions are “part of broad initiative throughout the company to prepare for our refinancing,” which calls for Gibson to retire $375 million in five-year senior secured notes before July 23. If the company cannot hit that deadline, at least $145 million in loans also will come due.

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