Strategy in TECH...
Gibson Brands Inc. announced today that it has filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. Chapter 11 denotes the company plans a reorganization and the company says it has reached an agreement with certain existing bondholders called a “Restructuring Support Agreement.” This agreement is with holders of more than 69.0% of the debt due in 2018
The Wall Street Journal is reporting that wireless music system maker Sonos is getting ready for the big time by planning an initial public offering. According to the report, the IPO could happen as soon as this July…or even June.
For the first time, because of a change in Google’s accounting, we get a look at the real financial numbers of Nest and analysts are truly surprised. It turns out, according to a report by Recode, that Nest is both smaller than many thought, and is losing a lot of money on an operating basis – so much so that it appears that any hope of profitability is far off in the future…if at all.
Gibson Brands CEO Henry Juszkiewicz has been very busy lately as he scrambles to arrange a $550 million bailout package in a desperate attempt to avoid bankruptcy for the storied brand. But he’s about to get a little busier as one of Gibson Guitar’s vendors, Tronical of Hamburg, Germany, sues the company for $50 million it says it is owed.
C&E Marketing, a manufacturer sales representative firm based in Sunrise, FL announced last week that it has acquired the home AV division of Audio Video Representatives (AVR) based in Marietta, GA. C&E specializes in a wide range of custom integration lines, while AVR represents and distributes both mobile electronics and home AV lines.
We learned last week that talks between Gibson Brands and deal making king KKR Credit Advisors fell apart in a dispute over “the appropriate consideration for the various parties involved,” according to a statement from Gibson Brands. As yet another bail-out opportunity slips by them, Gibson Brands sees their options narrowing, with an August deadline on a required financial restructuring of more than $500 million of debt rapidly approaching.
Big Raises and Record Bonuses for Sony Employees in 2018Sony Corp. is said to be planning to raise their employees pay rates by a very substantial 5 percent – and to pay record bonuses, according to a report by the Japan Times. This move is seen as a smart strategy by the company, newly flush with record profits after their successful turnaround by outgoing CEO Kaz Hirai, as it battles to secure top talent in a highly competitive hiring environment.
We reported last week that Krell Industries owner Rondi D’Agostino vehemently denied reports we had received from various sources that the company was in bankruptcy or considering bankruptcy. D’Agostino said that things may not be perfect, but it’s business as usual at Krell. Even better, she told us, the company is close to finally launching a new model. Sounds good…right?
Since our report was published, the trickle of sources approaching us about Krell…became a torrent. In messages public (in the Comments section below our original article) and private, we heard from more sources, many directly connected with Krell, who told a much different story.
Gibson Brands, a major provider of musical instrument and consumer electronics products, is in the midst of a widely reported liquidity crisis. With more than $500 million dollars in notes coming due late this summer, the company is seeking a knight in shining armor to ride in on a white horse with a big bag of money to refinance the company’s crushing debt.
To make the company appear attractive to a lender or investor, at the end of February the company sold off its shuttered Cakewalk division and laid off about 15 employees from its famous Custom Shop. Now we learn the company is planning more substantial layoffs across the board.
Recently, we have spoken with multiple sources who have said that Krell Industries, a maker of high-end, high-performance electronics, has fallen on hard financial times. Some suggested the company closed at the end of last week for good. Others told us the company may be already in bankruptcy or in the process of filing for bankruptcy. Is this another Classé situation?
