Gibson in trouble?

mongooz said:
big companies that are run like shit SHOULD go out of business.
chrysler, GM, goldman sachs, bear sterns, they ALL should have been allowed to just DIE!!!!!!!!

same goes for gibson.

there is no goddamn such thing as "to big to fail"
bullshit
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While that sounds great, if GM and Chrysler would have gone under that would have been 250,000 people left with no jobs and that is just directly. Not to mention the companies that provides parts and materials to them. I think there are some companies that are too big to fail, but when they do fail, leadership should be fired with no golden parachutes and then the bail out happen. If the country were in better a better economic position when that happened, then maybe, but to cut a quarter million people's lively hood because of some jackasses at the top doesn't sit well with me.
 
For years the internet keeps telling me that Gibson, Fender and GC are going out of business any day, they are terrible places to work, run by incompetent people & the average blogger or forum member knows more about how to run their companies than they do. Yet, its now 2016 and they are all still here. Wake me up when something actually happens.
 
Lerxst said:
For years the internet keeps telling me that Gibson, Fender and GC are going out of business any day, they are terrible places to work, run by incompetent people & the average blogger or forum member knows more about how to run their companies than they do. Yet, its now 2016 and they are all still here. Wake me up when something actually happens.
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Actually Fender is doin quite well and has been for many years
 
I'm curious as to how anyone can truly know Gibson's financial status. Since they are a private company, no one outside the company is privy to their financial details.
 
It explains it in the article. They do have to give financial details to their bond holders, and those bond holders are selling off the loans for half what they're worth.
 
Chad said:
While that sounds great, if GM and Chrysler would have gone under that would have been 250,000 people left with no jobs and that is just directly. Not to mention the companies that provides parts and materials to them.
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Once you go down the supply chain, the loss of jobs would have been massive. I agree that the top management should have been taken out to the parking lot and executed (or maybe at least fired as part of the the bailout deal), but the economic impact of losing Chrysler and GM on top of the rest of the '08 crash would have been felt for generations. And we saw how the collapse of Lehman alone almost nuked the entire global economy.

There most definitely is "too big to fail," but there most definitely shouldn't be. Although the '08 crash was the direct result of republican economic policy taken to its logical conclusion, I also blame Bill Clinton- he had the opportunity to regulate the derivatives market, but instead listened to Greenspan and let the financial sector keep on partying.
 
Honkridge said:
Actually Fender is doin quite well and has been for many years
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It was only a few years ago that Fender’s owners tried to unload it with an IPO and got laughed off Wall Street. FMIC bought all those other brands at prices far greater than they're worth today. And borrowed to do it.
 
This thread:
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jp_nyc said:
It was only a few years ago that Fender’s owners tried to unload it with an IPO and got laughed off Wall Street. FMIC bought all those other brands at prices far greater than they're worth today. And borrowed to do it.
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True they withdrew their IPO and imho that's a good thing. The rest of your post is your opinion. I know the Jackson brand is pulling its weight just fine.
 
Honkridge said:
Actually Fender is doin quite well and has been for many years
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So that massive debt service requirement and over-reliance on sales to GC/MF that the blogosphere said were the sure road to financial ruin have up and resolved itself? Sweet.
 
GomezAddams said:
I'm curious as to how anyone can truly know Gibson's financial status. Since they are a private company, no one outside the company is privy to their financial details.
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Privately held companies that trade their debt on the market often report their financials.
 
Lerxst said:
So that massive debt service requirement and over-reliance on sales to GC/MF that the blogosphere said were the sure road to financial ruin have up and resolved itself? Sweet.
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I think it’s safe to assume that FMIC and Ares must have worked something out after Bain dumped Guitar Center on Ares. I doubt FMIC would still be sending truckloads of guitars and amps to the Guitar Holdings warehouse if they weren’t being paid.
 
jp_nyc said:
I think it’s safe to assume that FMIC and Ares must have worked something out after Bain dumped Guitar Center on Ares. I doubt FMIC would still be sending truckloads of guitars and amps to the Guitar Holdings warehouse if they weren’t being paid.
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IIRC, It wasn't so much a receivables issue but their accumulated debt from all of FIMC's acquisitions over the years. The reliance on sales to GC was separate item in the IPO.
 
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