Beloved Guitar Maker Gibson Faces Crushing $560 Million Debt

  • CEO stumbled trying to transform company into lifestyle brand
  • Creditors concerned over Aug. 1 deadline on bond payments

Photographer: Jeff Adkins/Bloomberg

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Like the blues giant Robert Johnson, whose mastery of a Gibson guitar was said to be the result of a deal with the Devil, the company has come to a crossroads.

After 116 years, the Devil’s knocking on Gibson’s door. Debt of as much as $560 million is due this summer, and investors are whispering that Chief Executive Officer Henry Juszkiewicz has got to go.