Gibson Brands has laid off more than 15 people in its Custom Shop as it continues efforts to reduce the firm’s overheads with an eye on a debt refinancing deal in the summer.
The cuts affected a number of senior workers, including some supervisors. Gibson CEO Henry Juszkiewicz said the staff reductions are “part of broad initiative throughout the company to prepare for our refinancing.
Gibson needs to retire $375m in five-year senior secured notes before 23rd July. If the company cannot hit that deadline, at least $145 million in loans will also be called in.
Other debt reduction efforts include selling off consumer electronics brands — the company recently sold music mixing software subsidiary Cakewalk to Singapore-based BandLab Technologies — and cutting costs elsewhere.
Juszkiewicz said the Gibson Custom operation still employs about 100 people in all, although not all of those workers are based in Nashville.
