Gibson, as Strata-gee previously reported, filed for bankruptcy protection on May 1st in a pre-negotiated package with principal noteholders of the company’s substantial debt – debt that was now in default. But while that deal suggested a smooth path for the case through the bankruptcy court, it did not take into account the position of unsecured creditors, and especially Philips who describes itself as the largest unsecured creditor in the matter.
Financial
9 Years After Recession, Americans Still Feel Frugal
My grandparents lived through the Great Depression (1929-1939) and it changed their lives forever. As kids, we used to think they were weird. They never threw anything away. Bent nail? “I can hammer it straight again!” Small amount of left-over paint? “You can add thinner and turn it into plenty of white wash.” Hole in a sock? They would darn it! Clearly, dealing with that time of great financial distress changed forever the way they felt about money, spending, and saving.
Since the last recession in 2009, Gallup has been conducting a poll on Americans’ attitude on spending. Read on to see the results – they just might surprise you…
See the results of the latest Gallup poll showing American frugality continues… [Read more…] about 9 Years After Recession, Americans Still Feel Frugal
Sonos Cuts Nearly 100 Employees or 6% of Staff
BREAKING NEWS
Sonos Inc. confirmed late yesterday that it has cut 6% of its staff, or 96 employees, just days before a highly anticipated public offering expected as early as next month. The cuts are said to have been across all department and at all levels.
See more on what we know about the Sonos staff cuts… [Read more…] about Sonos Cuts Nearly 100 Employees or 6% of Staff
Painting the Gibson Bankruptcy by the Numbers
We have been closely following – first Gibson Guitar and then Gibson Brands – from their decision in 2012 to shoot for the stars by using OPM (other people’s money) to make highly leveraged…and highly questionable…acquisitions of various consumer electronics brands (a category in which the CEO and his team had no experience) to their recent 2018 bankruptcy. Gibson was trying to diversify their musical instrument business into something that now former CEO Henry Juszkiewicz called a music lifestyle brand. Instead, they wound up in bankruptcy.
Let’s look at what some of the numbers in the Gibson filings reveal… [Read more…] about Painting the Gibson Bankruptcy by the Numbers
Leon Acquires Terra Speakers, Expanding Assortment
Leon Speakers announced this week that it has acquired Terra Speakers in a transaction that is said to offer Leon a greatly expanded portfolio of high performance products targeted for the outdoor and commercial segments. The company says this acquisition provides “new residential and commercial business opportunities” with a company renown for rugged, all-weather outdoor speakers.
See more on this Leon and Terra transaction… [Read more…] about Leon Acquires Terra Speakers, Expanding Assortment
Docs Show Gibson Bankruptcy Bigger Than You Think
Founded in 1894, it is a mark of their long-term brand success that Gibson has become such a large and far-flung international organization. In a cursory review of documents submitted to the court as part of their bankruptcy filing shows, legendary performers such as Muddy Waters, BB King, Elvis Presley, Pete Townsend, Keith Richards, Duane Allman, Elvis Costello, Lenny Kravitz, Slash, Dave Grohl, Joe Bonamassa all used various Gibson products that, in some cases, became a signature of that performer. And yes, the bankruptcy filing promotes these iconic names.
But from these Gibson filings, we’ve learned so much more… [Read more…] about Docs Show Gibson Bankruptcy Bigger Than You Think
Gibson Brands Files for Bankruptcy
BREAKING NEWS
Filing Pre-Negotiated with Bondholders, CEO & Pres Stay thru Transition
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
See more on this anticipated development… [Read more…] about Gibson Brands Files for Bankruptcy
Sonos Quietly Prepares for Public Offering in June
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.
See more on this new of a Sonos IPO… [Read more…] about Sonos Quietly Prepares for Public Offering in June
Surprise Look at Nest Numbers: Smaller & Poorer
Look Quickly, You Likely Won’t Ever See These Numbers Again
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.
See what we’ve learned about Nest’s true operating financial results… [Read more…] about Surprise Look at Nest Numbers: Smaller & Poorer
A Gibson Pile-On: Now Hit With a $50 Million Lawsuit
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.
