James Kolbusz, a resident of Chicago, has been part of the financial field for nearly two decades. In addition to his work with Merrill Lynch in Chicago, James Kolbusz enjoys collecting, restoring, and selling vintage guitars through his shop Windy City Guitars. He has a particular interest in those made by classic American guitar manufacturer Gibson.
Gibson Brands, Inc. filed for Chapter 11 bankruptcy protection in May 2018, including a transfer of company ownership from stockholders to noteholders as well as a restructuring of the business. This allows Gibson to return its focus to making guitars, the company's core competency, after forays into consumer electronics and other music-related business endeavors. Current CEO Henry Juszkiewicz will stay on in some capacity.
The restructuring will address some, but not all, the issues faced by the venerable guitar manufacturer. The winding-down of its Gibson Innovations unit, which sold speakers, headphones, and DJ products, will enable it to curtail sales declines due to its loss of credit insurance overseas. It still faces supply chain issues, however, thanks to changes in import regulations on key materials used in its construction of high-end instruments, as well as the loss of trust of many retailers.
Based in Chicago, Illinois, James Kolbusz is senior vice president and institutional consulting director at Merrill Lynch, where he has worked since 2017. James Kolbusz also manages Windy City Guitars, a custom guitar shop in Chicago that offers full restorations as well as custom refinishing and modifications.
One of history's most iconic guitar brands, Gibson has struggled financially for several years under the leadership of CEO and longtime owner Henry Juszkiewicz, and is facing bankruptcy. Despite annual revenues of $1 billion, Gibson is less than six months away from $375 million of senior secured notes reaching maturity with another $145 million in loans due if the notes are not refinanced by July 23. Additionally, the company's CFO left the company after six months in the position, suggesting further unrest.
Juskiewicz addressed these financial concerns by releasing a statement claiming all bondholder obligations are currently met and the company expects to refinance all the bonds in the ordinary course of business. The statement also claims Gibson is focusing on products that have a greater growth potential and expects the company to see its best financial results in the next year.
The future remains to be seen, though a clearer picture of Gibson's future will be apparent in July.
