Funny thing is that Henry is a Harvard MBA investment banker, bought the company for a song - relatively speaking - and did make improvements early on to regain competitiveness in the late 80's/early 90's. From then on...oh did I say he is an investment banker... market dynamics (shrinking market) and rising costs PLUS the rise of superior competition hurt.
PRS was the fist ice bucket in the face. Numerous other luthiers with better guitars and more competitive prices AND personalized service was the second. Shrinking market and dealer consolidation - hampered with debt - didn't help either.
I am a collector with numerous Gibsons, made dating back to 1944, and in reality, the constant " super premium price point variation on a theme" got old fast. Not too mention the comparative poor quality versus a lower priced PRS or Fender American Deluxe. Do I really want a van paint style Les Paul at $5k? A new L5 Jazz box costs more than my 1961!
I think he did a good job with the low end of the market (as did Fender with MIM,MIK,Squire) with Epiphone. Many might say the 10-20 price multiple of a Gibson vs Epi ain't worth the differential.
At the end of the day, the current market dynamics aren't good for mass market instrument makers. Even Fender pulled an initial public offering four or five years back - I read it in consideration and damn, who would buy it given Fender's AND Guitar Center's financial position and mounting liabilities - their largest dealer, declining core markets and rising costs.
But hey, remember they said Fender Strats and Gibson Les Pauls were dead when polyphonic synths , drum machines, and pointy Jacksons and BC Rich's hit the streets? I do - showing my age here.
I give Henry credit for diversifying and attempting to leverage the iconic brand. For improving manufacturing methods - but at the expense of craftsmanship; for range extending lines - but too much variation on a theme; and buying complementary music brands - but killing some off along the way - ouch.
But service sucked - my guitarist has two Alex Lifeson Les Pauls from the Custom Shop and one headstock snapped. Custom Shop said send it in and we will have it back in 5 weeks. Four months later with no communication it returned and he had to get the neck refinished.
Too much debt to achieve the growth objectives kills everyone sooner or later. And the consumer electronics business is a killer - ask Sony. (Philips - really?)
I just hope someone in the USA buys the brand, but in all likelihood, it'll be a foreign entity with a strong music brand portfolio contributing economies of scale, distribution, and deep pockets.
Nonetheless, I still get butterflies in my stomach when I see a Gibson Les Paul, SG, L5 or ES335 hanging on the wall like I did when I bought my first bass guitar in 1971 - a Gibson EB3 with pink fur lined case for $227, used at Frank Richards Music Store in Livingston, NJ, with money saved from my paper route - still have it.