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.
Onkyo
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
Gibson Stuns the Music World, Shuts Down Cakewalk
Acquired in 2013, Cakewalk was Killed for Philips, Gibson Says
In what many in the industry are suggesting is yet another indicator of struggles at Gibson Brands, the company announced a little over a week ago that it would wind down operations at Cakewalk Inc., a popular music creation software company it owns. Music industry-centric websites around the internet exploded with largely critical coverage of the move, and comments on Cakewalk’s website are decidedly negative – both sad and angry – as customers seek to process the shocking news.
See more on yet another move by struggling Gibson…
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Is Gibson Brands Headed for a Default?
Moody’s Hits Gibson Brands with Another Credit Downgrade
Moody’s Investors Service, one of the largest credit rating services in the world, has downgraded the credit rating for Gibson Brands, the Nashville-based parent of Gibson Guitar, Onkyo, Teac, KRK, Philips, Stanton and more. Moody’s has set their rating on Gibson Brands debt to Caa3, down one step from Caa2.
The move caused Wall Street investment analyst The Street to raise the specter of the possibility of Gibson Brands defaulting on their debt.
See why Moody’s says the Gibson Brands situation is unsustainable… [Read more…] about Is Gibson Brands Headed for a Default?
Gibson Brands Takes Control of Onkyo Corp.
BREAKING NEWS
In a filing with Japan’s JASDAQ stock exchange, Onkyo revealed this week that at the end of June, major investor Gibson Brands became the largest shareholder for the first time since its relationship with the Osaka-based manufacturer of higher-quality electronics began in 2012. This small announcement portends a potentially significant change in the relationship between the two entities.
See more on this news out of Japan about Gibson and Onkyo… [Read more…] about Gibson Brands Takes Control of Onkyo Corp.
Integra Moves Into Distribution, Eliminating a Key Selling Point
This week we learned that Onkyo and Integra products would now be sold through AVAD, a distributor of custom integration products in the U.S. that is in the middle of changing its business model. Interestingly, this announcement came from AVAD, not from Onkyo/Integra, although Onkyo Vice President of Sales and Business Development Joe Petrillo is quoted in the official release.
But this simple announcement is being viewed as a game changer for many in the industry, who note that with the loss of its more “protected” status, Integra may have lost one of its key selling points.
See how some in the market are reacting to this decision by Integra… [Read more…] about Integra Moves Into Distribution, Eliminating a Key Selling Point
Longtime Industry Executive Ken Furst Passes Away
“Yeah, Ken Furst…he can be a bit of an acquired taste,” a mutual acquaintance once said rather euphemistically as he described Ken Furst to me several years ago. I had just met Ken as a competitor, in a verbal exchange rich with no small amount of taunting and extreme sarcasm. Or as Ken would probably describe it, in an exchange of friendly banter and wry humor. The better I got to know Ken over the ensuing years, the more I realized his version of that exchange was probably more accurate than mine.
Ken Furst died peacefully in his sleep this past Saturday night, December 17th. He was way-too-young at only 66 years old.
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Onkyo Internally Announces Major Sales Structure Reorganization
BREAKING NEWS
Four Major Brands to be Consolidated into Two Divisions
In a national conference call with sales reps yesterday, Onkyo announced a major restructuring of their sales organization. This overhaul involves consolidating their four major brands – Onkyo, Integra, Pioneer, and Pioneer Elite – into two newly-created divisions.
See more on this breaking news from Onkyo… [Read more…] about Onkyo Internally Announces Major Sales Structure Reorganization
Gibson Brands Hires New COO, Hit With Another Credit Downgrade
Gibson Brands announced Tuesday that it has hired Lee Cheng as its new Chief Operating Officer (COO) and executive vice president. This appointment takes effect immediately and follows a recent additional credit downgrade by the Moody’s Investor Service.
See more on Cheng’s interesting background and the Moody’s downgrade… [Read more…] about Gibson Brands Hires New COO, Hit With Another Credit Downgrade
Gibson Brands Puts Assets Up For Sale
Just two weeks after we told you about Moody’s Investors Service downgrading Gibson Brands credit to junk status, the company has put two of their properties up for sale in an apparent effort to raise some much-needed cash. According to local reports, both properties contain warehouses and are located in redevelopment areas in downtown Nashville.
