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Gibson has pinned itself into the over-$2000 guitar sales ("We have over 40% of the market!") and made a bunch of questionable acquisitions that were aimed at diversifying and creating an entertainment powerhouse (Wurlitzer, Stanton, Cerwin-Vega, Phillips, Teac, Baldwin). They essentially overextended themselves with businesses that have a questionable return and cannot pay their loans. Throw in significant decline in quality of their flagship Gibson products and a significant drop in guitar sales overall and the results have just come in.
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gary
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