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?
Financial
Amazon Invests in Another Smart Home Startup
Popular Executive Leaves the Company
Just one week after Amazon made a widely reported purchase of video doorbell maker Ring (for a reported eye-popping $1 billion), we learn that it has made another investment into the smart home space, taking a share of smart thermostat maker Ecobee. Although this was an investment made through their Amazon Alexa Fund and not an outright acquisition, it seems pretty clear that Amazon is getting very serious about the smart home business.
See more on this unexpected development from Amazon… [Read more…] about Amazon Invests in Another Smart Home Startup
Gibson Sells One Division & Cuts Staff in Another
The news and events surrounding troubled guitar and consumer electronics company Gibson Brands, Inc. seem to be moving at a rapid pace with almost daily revelations as the company struggles to survive ahead of a massive debt due-date just a few short months away. We learned over the last few days that Gibson has sold their recently shuttered Cakewalk Inc. division and laid off staff in their famous Custom Shop operation.
See more about the continued dramatic developments surrounding Gibson… [Read more…] about Gibson Sells One Division & Cuts Staff in Another
Of Gibson, S&P Says: ‘Default is Imminent’
S&P Global Ratings, part of top credit rating agency Standard and Poor’s, this week lowered their rating of Gibson Brands, Inc. to “CCC-” – down one step from the already low rating of “CCC.” Their outlook on Gibson? “Negative.” A rating of CCC- means that “default is imminent.”
See more on this latest torpedo to hit the good ship Gibson… [Read more…] about Of Gibson, S&P Says: ‘Default is Imminent’
CEO Says Gibson Will Dump Brands
Financials Show Sales & Profits Continue to Slide
Gibson Brands CEO Henry Juszkiewicz continues to profess confidence that the company will be able to successfully refinance their over $500 million debt before a mid-year maturation comes due. Telling the Nashville Post that the company is going through a little “spring cleaning,” Juszkiewicz says the company already dropped their Cakewalk music software group, and other brands in their portfolio are next to go. But a financial report to bondholders shows continued deterioration of both sales and profits, suggesting that simply pruning a few brands from the portfolio may not be enough to attract new investors or lenders.
See more on the dire situation at Gibson Brands… [Read more…] about CEO Says Gibson Will Dump Brands
Restructure Done, Sony Sets Sights Higher – on Uber
We learned today from multiple media reports out of Japan that Sony Corp. is working on building a joint venture with at least six taxi operators in Japan this Spring. The goal comes in the wake of Uber Technologies Inc. saying that it seeks to improve its success in Japan through a partnership with another taxi company there.
Sony, jumping into the ride-hailing business?… [Read more…] about Restructure Done, Sony Sets Sights Higher – on Uber
Gibson CEO Turns to PR to Stop Crashing Reputation
Company Rehires CFO With Debt Deadline Fast Approaching
As the music world media continues to trumpet the news of the potential impending collapse of Gibson Brands, noting large outstanding debts and the exit of the company’s CFO, Gibson CEO Henry Juszkiewicz launches a PR blitz to try and stem the collapse of the company’s reputation. It is a critical time for Juszkiewicz, as he is engaged in trying to refinance the company whose huge debt portfolio of over $500 million comes due in just a few short months. To try and stem the tide, Gibson released a couple of press releases last week claiming, in essence and improbably, that things are just fine.
Oh and Gibson Brands hired a CFO…or rather, re-hired a former CFO… [Read more…] about Gibson CEO Turns to PR to Stop Crashing Reputation
Gibson Makes Coupon Payment; CFO is Out
Debt Holders Increasingly Anticipate Bankruptcy Filing
Gibson Brands announced at the end of last week that it had successfully completed a $16.6 million coupon payment to holders of its $375 million 8.875% senior secured notes due 2018. This news, a seemingly positive development for the company, really only means that they get to march forward towards their mid-year debt maturities – the big event. But, for the moment at least, they are stayin’ alive.
However, Gibson’s CFO has left the company… [Read more…] about Gibson Makes Coupon Payment; CFO is Out
Thiel is Toast, Specialty Audio Takes Another Hit
After a tumultuous five-year period, which began in 2012 when Thiel was sold to Tennessee private investor David B. Griffin, we can now confirm that Thiel Audio has been closed for good. Failing some kind of 11th hour rescue, another great American audio brand will be relegated to the dustbin of history.
See what we know of the closing of Thiel Audio… [Read more…] about Thiel is Toast, Specialty Audio Takes Another Hit
Recent Purchaser of Gibson Brands Properties Files Lawsuit
And They Said It Wouldn’t Last; Hearing Set for This Friday
Somera Road, Inc., a real estate investment firm that has recently purchased several properties from Gibson Brands, Inc., has filed a lawsuit against the company seeking to enforce a purchase agreement that they say Gibson has violated. The lawsuit was filed in Nashville, Tennessee in the Davidson County Chancery Court, according to a report by the Nashville Post.
