Gibson: The rockiest company was saved from bankruptcy thanks to the pandemic

No one who loves music misses the name of the rockiest company out there: Gibson. This guitar manufacturer is famous for making instruments for big world stars like e.g Jimmy Page (Led Zeppelin), Joe Perry (Aero Smith) Bob Marley, John Lennon either Paul McCartney (The Beatles), and up until a few months ago it was on the verge of disappearing.

One of the causes of this bankruptcy was the ambitious purchase of Philips’ audio and video division, for which In 2014, they paid $135 million. The deal had the ambition of making Gibson the “world’s largest sound company,” as the company said at the time. In the end, however, it served the opposite purpose.

Guitar sales had been declining in the United States for years, prompting Gibson to diversify into other areas within the music industry. However, they failed to turn the Philips-bought division into a profit and were only a few months from bankruptcy.

A) Yes, KKR made the decision to purchase Gibson in 2018the a drawn Debts of more than 500 million of dollars to recover its essence and try to save the mythical company. To this end they returned to the city which saw them rise, Nashvilleand they resumed making guitars as their main occupation, with the goal of not dying trying.

The recovery was slow to develop as the pandemic hit. And although the music industry suddenly had to shut down, Restrictions imposed in hundreds of countries have managed to multiply guitar sales. “We’ve grown in each of those three years, but the last was much more significant. During detention, people took the opportunity to do something they never had time for, like play the guitar,” they explain.

Gibson’s Legendary Story

This is how the pandemic managed to save one of the most mythical brands in music history of the last century. Gibson born in 1894 in the city of Kalamazoo and is the company that created the first electric guitar in 1936. Since then his career has been linked to that of the best musicians in the world Rock’n’Rollwith models still used by today’s stars.

127 years after its founding, Gibson has managed to double the production of guitars in its factories and has just Acquire an amplifier company which strives to offer its customers a complete musical offer. Perhaps the pandemic has been a godsend for the company, but it affirms that “old rockers never die.”

old companies, gibson, pandemic