Gibson guitars is filing for bankruptcy.
News articles are pointing to their bid to expand into other aspects of music equipment as the cause.
Nobody is putting much emphasis on the private equity involved.
You might remember KKR Funds from Toys R Us.
News articles are pointing to their bid to expand into other aspects of music equipment as the cause.
Nobody is putting much emphasis on the private equity involved.
You might remember KKR Funds from Toys R Us.
Gibson is another victim of private equity's reckless abandon.
It doesn't fit into the "retail apocalypse" narrative. After all, they don't really *sell* the guitars, they just make them.
So another excuse must be found.
"Gibson shouldn't have tried to expand!"
It doesn't fit into the "retail apocalypse" narrative. After all, they don't really *sell* the guitars, they just make them.
So another excuse must be found.
"Gibson shouldn't have tried to expand!"
On a personal note: I've always been a Fender guy, but I appreciate and respect Gibson guitars. They've made just as much history and so much of the music we love owes Gibson a great deal.
It saddens me that the company was put in this mess.
It saddens me that the company was put in this mess.
Another note to blame the struggle on Gibson and not private equity's role:
They went from selling 1.5 million guitars a year to 1 million over a decade.
"Guitars are dying!"
Well, no. Guitars are *expensive,* you dolt.
They went from selling 1.5 million guitars a year to 1 million over a decade.
"Guitars are dying!"
Well, no. Guitars are *expensive,* you dolt.
A good guitar - not a great one, but a GOOD one, that will potentially last a lifetime - runs about $700 off the shelf.
Even a cheap-but-functional guitar is upward of $200-$300.
Most people don't ever buy more than one.
Even a cheap-but-functional guitar is upward of $200-$300.
Most people don't ever buy more than one.
That's not even accounting for the hideous $150 "student packs" that include a garbage guitar and a garbage amplifier.
If you get one of those, you might as well just burn the money instead. If you intend to stick with guitar, you'll be dumping your "student" guitar eventually.
If you get one of those, you might as well just burn the money instead. If you intend to stick with guitar, you'll be dumping your "student" guitar eventually.
More, you can sometimes get one of those $700 "good" guitars on sale, or even used.
Good guitars and amps don't really depreciate. While they require maintenance, they don't wear out to pieces like cars or fridges or televisions. They don't go obsolete like computers. They last.
Good guitars and amps don't really depreciate. While they require maintenance, they don't wear out to pieces like cars or fridges or televisions. They don't go obsolete like computers. They last.
With guitars (and pianos, strings, horns, and any non-digital instrument), you have a product that retains most of its value over time.
Used sales undercut new sales. The more guitars exist, the less new guitars get sold.
And that's not even accounting for the vintage idiots.
Used sales undercut new sales. The more guitars exist, the less new guitars get sold.
And that's not even accounting for the vintage idiots.
Even in a saturated market full of used, vintage and boutique instruments AND with multiple competitors, Gibson still sold 1 million brand new guitars *every year.*
Gibson made money. Just not *enough* for private equity shareholders.
Gibson made money. Just not *enough* for private equity shareholders.
