An iconic guitar brand recently determined that it needed to take a major step to address its financial troubles. The company, Gibson Brands, thus decided to file for Chapter 11 bankruptcy. Any company in Massachusetts that is struggling to stay afloat financially can, in the same way, seek business bankruptcy protection.
In the case of Gibson Brands, the company reported that it anticipates surviving the Chapter 11 bankruptcy. The major reason for this is that it has received plenty of support from important creditors. The company was able to strike a deal with most of its creditors, which will allow the company to keep operating and manufacturing musical instruments.
Gibson Brands made its debut back in 1894. The company later faced some hard times, but fortunately, the current chief executive officer of Gibson rescued it from collapse more than three decades ago. Unfortunately, the maker of guitars, mandolins and banjos could not survive the latest financial hurdles facing the business.
Even companies that have been around for years or even decades, like Gibson Brands, can stumble upon hard financial times due to shifting market or industry conditions. Fortunately, this does not mean that all is lost for these companies. Rather, struggling companies can choose to file for Chapter 11 bankruptcy protection, which essentially gives them the opportunity to wipe their slates clean and start all over financially. An attorney can walk a business owner through the bankruptcy filing process with the goal of helping him or her to finally achieve desperately needed financial freedom in Massachusetts.
Source: usatoday.com, “Gibson guitar maker files for Chapter 11 bankruptcy protection“, Nathan Bomey and Nate Rau, May 1, 2018