The Tennessee Shuffle

Just what is going on with Gibson and what could its future hold?

It’s been a painful, gradually unfolding process and impossible to ignore, but the revelations regarding Gibson’s calamitous financial woes in the last year have made for depressing reading. There’s been a host of misinformation online too, including everything from how culpable its CEO might be to whether Bonamassa could bail them out. Ultimately, we just need to know how Gibson got here and how deep of a hole it’s in.

Has Gibson really filed for bankruptcy?

Following debts of around $375m (£276m) Gibson Brands Inc filed a case under chapter 11 of the United States Bankruptcy Code last month. This is also known as a reorganisation bankruptcy and is commonly filed by corporations that require some time to hold off their creditors so they can restructure debts they have amassed. It can give the debtor, in this case Gibson, the chance to fulfill obligations under a plan of reorganisation and put their house in order.