Not lack of pride. Lack of time. Henry required 600 instruments a day production out of a factory that was designed to do about 300 a day. One of the reasons they've declared bankruptcy is that a hell of a lot of those instruments weren't already sold and went into one of Gibson's many warehouses.
I ain't heard nothin', but I wouldn't be all that surprised if they tap Dave Berrymann for the job. We'll know soon either way.
They sit...and sit and sit...in one of many warehouses. Gibson has a LOT of finished instruments waiting to be sold.
I would expect this reorg to include a change in dealer terms so that independents can afford to carry them again.
The musical instrument business was not the albatross. The electronics business was. That is the part being disassembled and removed. What KKR (and other debt holders) liked was the musical instruments business. What they didn't like was Henry and his ill-advised foray into consumer electronics.
A new CEO will not be announced until restructuring is finished and that likely takes 6-12 months. For now, the Chief Restructuring Officer is running things.
I fully expect all dealer contracts will be revisited as part of the restructuring. One of the things with bankruptcy is that you get to reopen your contracts if the court allows it.


