What kind of president does Gibson need to escape bankruptcy?

Aug 22, 2018

 

Credit Gibson

NASHVILLE, Tenn. (OSBORNE)  --  Gibson is advertising for a new president, even as the iconic Tennessee instrument maker wrestles with bankruptcy.

Gibson filed Chapter 11 bankruptcy back in May, asking the court for protection from creditors as it reorganizes.

This past week the Nashville based company placed ads for new leadership. The posting says in part that Gibson is looking for a president who can acquire and integrate complimentary businesses.

Lipscomb University economist Dr. Andy Borchers has been following this story for WMOT. He says those qualifications come as a surprise. Borchers believes too many acquisitions are what got Gibson in trouble to begin with.

“It would seem in Gibson’s case that they’ve already acquired more than they could possibly integrate, and that likely paring down to the core business should be the focus they have right now.”

Borchers describes current company President Henry Juszkiewicz as “an idea guy” who tried to grow the company by adding new product lines to the Gibson Brand. Borchers says Gibson should now be looking for a different kind of leadership.

“A very sharp manager that knows how to trim the sails, retain the important parts, integrate the stuff to keep, get rid of the stuff that’s got to go, and that requires fundamentally different managerial skills.”

That’s exactly the approach Gibson said it would take when it filed for bankruptcy in May. Press statements spoke of liquidating unprofitable divisions and a “leaner and stronger musical instruments-focused platform."

Whatever direction Gibson takes, the plan will have to meet the approval of the judge presiding over the company’s bankruptcy.