Gibson Guitar Factory Looking for a New Home

Discussion in 'The Backstage' started by paruwi, Oct 20, 2017.

  1. paruwi

    paruwi Kraut-Rocker Super Mod Premium Member

    Messages:
    18,907
    Likes Received:
    24,371
    Joined:
    Dec 24, 2009
    Gibson Guitar Factory Looking For New Home
    By Patrick Lantrip

    [​IMG]

    Gibson Beale Street Showcase and Guitar Factory

    Nashville-based guitar maker Gibson Brands Inc. is putting its Downtown Memphis factory on the market as it looks for a new, smaller home.

    The 18-year-old Gibson Beale Street Showcase and Guitar Factory – located on nearly six acres at 145 Lt. George W. Lee Ave., across South B.B. King Boulevard from FedExForum – clocks in at 127,620 square feet and has an adjacent 330-space parking lot. And it could be yours for $17 million.

    “It’s very difficult to accumulate this much land in a downtown market,” said CBRE executive vice president Johnny Lamberson, who is handling the sale along with CBRE vice president Terry Radford. “In fact, I really haven’t seen a sale this large probably since (FedExForum) was put together.”

    Lamberson said that while the Gibson factory won’t be leaving Memphis anytime soon, the owners feel the current location is too big for what they need.

    “They are definitely going to stay in Memphis, but when this venue was built it had a large entertainment venue (that) hasn’t been utilized in a couple of years,” he said. “And that’s approximately half of the building.”

    Once Gibson figures out the square footage needed for its new location, it will again tap CBRE to handle that search. In the meantime they are looking to sell the current facility and sign an option to stay in it for another 18 to 24 months.

    Lamberson said he would like to see the building adapted for reuse but could not rule out the possibility of new ground-up structure replacing the factory/entertainment venue.

    “One of the fun things about being a broker sometimes is the unknown,” he said. “I can’t sit here right now and tell you what it’s going to ultimately be, but this is certainly an exciting location and we’re looking forward to seeing the next chapter.”

    A call to Gibson was not immediately returned.

    The Memphis plant is one of Gibson's three production facilities, and the only one open for tours. It produces semi-hollow electric guitars, including the Gibson ES line, and custom instruments. Gibson's solid-body electric guitars are made in Nashville, while its acoustic guitars are produce in Bozeman, Montana.

    Gibson’s Memphis and Nashville locations became a national flashpoint in 2011 when federal agents raided the factories and offices in both cities, seizing several pallets of wood, electronic files and guitars. The government alleged some of the wood Gibson imported to manufacture guitars violated the Lacey Act, a law that bans the import of environmentally threatened plants and animals.

    Gibson’s corporate response turned the episode into an attack on the size of the federal government, with company postings on Twitter including the hashtag #thiswillnotstand. Days after the raid, U.S. Rep. Marsha Blackburn of Tennessee invited Gibson CEO Henry Juszkiewicz to be her guest at a joint session of Congress as then-President Barack Obama unveiled a jobs proposal.

    https://www.memphisdailynews.com/news/2017/oct/20/gibson-guitar-factory-looking-for-new-home/
     

    Attached Files:

    Last edited: Oct 20, 2017
  2. cherrysunburst00

    cherrysunburst00 Senior Member

    Messages:
    8,512
    Likes Received:
    6,037
    Joined:
    Mar 15, 2015
    Things are looking really BAD for Gibson. Not sure they can withstand this storm.
     
    Madhouse and IGRocker like this.
  3. rockstar232007

    rockstar232007 Senior Member

    Messages:
    14,933
    Likes Received:
    10,499
    Joined:
    Jun 28, 2008
    Yep.
     
    Madhouse and cherrysunburst00 like this.
  4. Slick

    Slick Senior Member

    Messages:
    2,384
    Likes Received:
    2,377
    Joined:
    Aug 18, 2009
    There will be a "Memphistown" in Beijing before you know it
     
    bungle, RAG7890, dsmcl77 and 8 others like this.
  5. Big John

    Big John tastes like chicken V.I.P. Member

    Messages:
    6,910
    Likes Received:
    5,468
    Joined:
    Mar 18, 2007
    He's liquidating to inflate the bottom line. He's getting the books ready to sell it all. :naughty:
     
    Madhouse, larsjen, jeffdemann and 3 others like this.
  6. cybermgk

    cybermgk Singin' the body lectric Premium Member V.I.P. Member

    Messages:
    12,435
    Likes Received:
    15,622
    Joined:
    Jul 7, 2011
  7. Who

    Who are you? Who who who who.... Premium Member

    Messages:
    12,933
    Likes Received:
    20,050
    Joined:
    Mar 15, 2012
    It's just the hollow-body facility. Who cares?
     
  8. paruwi

    paruwi Kraut-Rocker Super Mod Premium Member

    Messages:
    18,907
    Likes Received:
    24,371
    Joined:
    Dec 24, 2009
  9. coupe89

    coupe89 Senior Member

    Messages:
    160
    Likes Received:
    93
    Joined:
    Mar 23, 2010
    Good thing I bought my this year.
     
  10. NewDayHappy

    NewDayHappy Senior Member

    Messages:
    451
    Likes Received:
    512
    Joined:
    Dec 18, 2016
    Good thing I bought my Standard LP & SG..... Although I am longing for a nice heavy Traditional in the future.
     
    tm88 likes this.
  11. Tone deaf

    Tone deaf Senior Member

    Messages:
    17,841
    Likes Received:
    23,954
    Joined:
    Apr 12, 2011
    I suspect that this is just a wise business move and raising cash. I think that they sold properties in Nashville, last year. They bought the Memphis land some time around 1998. They don't use half of the space. Makes sense to unload it. I don't know what they paid for it (plus the building), but I would suspect that it was a lot less than the asking price.

    $17 million of additional cash on the books will help them with their lenders (new debt package put in place earlier this year) and better position them to replace the debt that comes due, next year. The better the books look, the lower the cost of the additional debt and the easier it is to place.

    I went into detail on this subject on another thread, but rest assured they never would have got the debt deal that the received, earlier this year, if there was any danger of the company not repaying it. Senior lenders are not in the business of issuing bad loans.
     
    Last edited: Oct 20, 2017
    landguitar, jdto, BBD and 10 others like this.
  12. TheX

    TheX Voice of Reason

    Messages:
    15,166
    Likes Received:
    21,771
    Joined:
    Jan 10, 2008
    Good thing I don't buy new.
     
  13. VictorB

    VictorB Formerly LZF Super Mod

    Messages:
    33,179
    Likes Received:
    65,018
    Joined:
    May 31, 2007
    No wonder CME was/is blowing out their Memphis stock.
     
    jwehrman, rockstar232007 and jlu52 like this.
  14. Crotch

    Crotch Members Only Premium Member

    Messages:
    9,043
    Likes Received:
    9,513
    Joined:
    Jan 13, 2012
    Hoping it is going to, like they said, a smaller location only. Cause to me Memphis has been the only part of Gibson worth a shit since 2015. In my opinion they have been putting out fantastic guitars without cheap tricks or gimmicks like the USA line, and not raping their customers with price like the Custom Shop.
     
    tolm, thesjkexperience, Hope and 3 others like this.
  15. stonevibe

    stonevibe Senior Member

    Messages:
    804
    Likes Received:
    108
    Joined:
    Mar 14, 2008
    Last edited by a moderator: Oct 20, 2017
  16. Rich

    Rich Non sequitur Premium Member

    Messages:
    26,701
    Likes Received:
    70,407
    Joined:
    Jun 17, 2009
    I don't believe that the brand is entirely trashed and think it can recover. But, some major changes need to take place before customers have faith again, not the least of which is that senior management needs to go - just sell their shares, get what they can, and let someone else take the helm.
     
  17. Rich

    Rich Non sequitur Premium Member

    Messages:
    26,701
    Likes Received:
    70,407
    Joined:
    Jun 17, 2009
    Maybe, but the company also has a mountain of debt and its credit rating is in the shitter.
     
    fleahead likes this.
  18. Axiomatik

    Axiomatik Member

    Messages:
    48
    Likes Received:
    119
    Joined:
    Oct 1, 2017
    Wow, they must really be struggling. Article says they've only owned the site for 18 years.
     
    Tone deaf likes this.
  19. Dun Ringill

    Dun Ringill Premium Member

    Messages:
    3,899
    Likes Received:
    5,525
    Joined:
    May 24, 2012
    I can't imagine why no one wants to play there! Another grandiose idea down the tubes!
     
    fleahead likes this.
  20. Mr Insane

    Mr Insane Senior Member

    Messages:
    10,234
    Likes Received:
    4,827
    Joined:
    Dec 8, 2008
    Personally this isn't raising any Red flags. So what they want to find a smaller property?

    I took a tour of the place a few years ago.
     

Share This Page