Financial troubles at Gibson

[Milo Spleen]

blowing out their tools because they're dropping tools and outdoor power equipment from their inventory.

Doesn't K-Mart have Craftsman tools now? Another company on the brink.

 

[jthisdell]

Doesn't K-Mart have Craftsman tools now? Another company on the brink.

Great example of one dying company buying another so they can share "synergies"

 

[fhm555]

Doesn't K-Mart have Craftsman tools now? Another company on the brink.

Craftsman appears to have become abrand of it's own. ACE Hardware, K Mart, and a slew of online retailers now carry the brand.

 

[Stevorebob]

Stanley ownes Craftsman now, and Kmart owns Sears.

 

[/\/\3phist0]

Doesn't K-Mart have Craftsman tools now? Another company on the brink.

Kmart owns Sears.
Kmart, Sears to merge in $11B deal - Nov. 17, 2004

 

[Saratogacv60]

Well, they are about $1.6 Billion in debt. Other than filing for bankruptcy, what other options do you see for how they can get out of that situation?

They have several options. They could probably sell their profitable businesses like epiphone, which would raise some cash. License the Gibson brand in Asia for everything except guitar and bass. Then sell the Gibson brand to a company that would actually make great Gibson style guitars in America ie PRS. That is probably a fantasy. But the reality is that the luxury music instrument market is pretty small, so in order to retain brand value, keep it alive by having it be exclusive but exceptionally well made.

 

[jthisdell]

$500M in debt maturing over the next 12 months and their bond yields are at 30%? Is that as bad as it sounds? Do companies in this position typically find a way out that doesn't involve bankruptcy?

Depends on your creditors. One typical option is to see if bondholders would exchange some of their debt for equity in the company.

 

[SadowskySteve]

Doesn't K-Mart have Craftsman tools now? Another company on the brink.

A very brief history on the inside of Sears.
Eddy Lambert had control of Kmart. The former Sears Roebuck made some large real estate purchases of some prime Kmart locations. Eddy flipped the money around to purchase controlling interest in Sears and created Sears holdings. He personally sold the craftsman and Kenmore names to his own holding company so he could use them as he pleased long after he finishes off the Sears carcase. He is a hedge fund guy that slowly dismantled Sears and took anything of value away from the company. The result is Craftsman and Kenmore are just brand names that have no link to what originally made them a great brand.

 

[Coolhandjjl]

Not sure if this has been posted before but geez.

[Invalid or Expired Link Removed]

Funny that Slash is there. His Les Paul's are ghost built, not Gibson's.

 

[xnewyorka]

They have several options. They could probably sell their profitable businesses like epiphone, which would raise some cash. License the Gibson brand in Asia for everything except guitar and bass. Then sell the Gibson brand to a company that would actually make great Gibson style guitars in America ie PRS. That is probably a fantasy. But the reality is that the luxury music instrument market is pretty small, so in order to retain brand value, keep it alive by having it be exclusive but exceptionally well made.

Sorry - my quote about $1.6B in debt was about Guitar Center not Gibson. The thread morphed.

 

[Milo Spleen]

He is a hedge fund guy that slowly dismantled Sears and took anything of value away from the company. The result is Craftsman and Kenmore are just brand names that have no link to what originally made them a great brand.

That figures. Craftsman tools were superior quality.

 

[Jeff Scott]

Stanley ownes Craftsman now, and Kmart owns Sears.

Does this mean that Stanley is on its way down the toilet, too?