Guitar- maker Gibson fighting for survival

San Francisco: Worldfamous guitar maker Gibson, whose instruments have been played by the likes of John Lennon and Elvis Presley, is facing serious financial problems that threaten its very existence.

The mythical company — in Nashville, Tennessee since 1894 — on Monday brought in a new financial director, Benson Woo, to try to rescue the ailing group.

Gibson Brands, which also sells audio systems for both professionals and the general public, is working with an investment bank to set up a debt refinancing plan, the company said in a statement. The group has a $ 375 million debt payment due in early August, the Nashville Post reported.

“While the musical instrument and pro audio segments have been profitable and growing, they are still below the level of success we saw several years ago,” CEO Henry Juszkiewicz said.

He said the company, as part of a broad review of business strategy, was continuing to streamline its Philips brand consumer audio business while eliminating some underperforming products.

He said Gibson expects this strategy will lead “to the best financial results the company has seen in its history within the next year,” with full repayment of company debt “within several years.” Gibson bought Philips, a Dutch entertainment brand, in 2014 for $ 135 million. It produces one of the most prestigious guitar models, the Les Paul.