Gibson, whose electric guitars have been played by stars including Elvis and Keith Richards, have recently filed for bankruptcy protection as it struggles with $500m of debt.
Gibson made an ill-fated purchase of Philips’ consumer audio division four years ago for $135m and have decided to pull out of that business and focus mainly on musical instruments.
Chief executive Henry Juszkiewicz, who bought the company in 1986, said the Chapter 11 filing would assure the company’s “long-term stability and financial health”.
Gibson was founded in 1903 in Kalamazoo, Michigan, and recently moved out of its Nashville offices, where it had operated since the mid 1980s. Several of their guitar models, including the Les Paul, SG, ES-335, and others are to this day still present in rock and popular culture.