Gibson Brands has filed for Chapter 11 bankruptcy protection amid what the company has called a “devastating” financial fall.
The announcement was made Tuesday morning. As part of the filing, the company said it will kill its Innovations unit, which makes Phillips headphones, speakers and other electronic accessories.
A federal judge will be required to sign off on the plan. Sixty-nine percent of lenders have given their support, but other vendors could potentially object to the plan and demand liquidation – causing Gibson to go out of business.
Gibson has factories in Nashville, Memphis, and Bozeman, Montana. They employ more than 875 people.