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  1. ITV Report

Iconic guitar-maker Gibson could face bankruptcy

Gibson is well-known for its guitars. Credit: PA

There are fears the iconic guitar-maker Gibson could be facing bankruptcy in the near future.

The American company which has supplied some of the world's biggest stars with their instruments is in the middle of financial difficulties.

Guitarists such as Santana, Slash and Bob Marley are among the long list of clients Gibson has provided their Les Paul and SG guitars in their 116-year history.

Bill Lawrence, the chief financial officer, left the company after less than a year in his role, and only six months prior to $375m (£267m) of senior secured notes being set to mature.

The Nashville Post claims if these notes are not refinanced by July 23, then $145m (£103m) will be immediately due in bank loans.

Slash is known for using Gibson guitars. Credit: PA

Henry Juszkiewicz, Gibson's chief executive, is now in the process of deciding what to do, whether to exchange the date, pay it off with his own equity or declare bankruptcy.

Juszkiewicz told the Nashville Business Journal: “We have been monetising assets like stock holdings, real property and business segments that could not achieve the level of success we expected.

"By monetizing these assets, we can reduce debt and generate funds to contribute to business segments that are thriving. It is important to our business to get back to the financial success we had to achieve the best financial terms in the refinancing of our company.”

Annual sales at Gibson total more than $1bn (£713m), and the company has three factories.