Another iconic brand is now filing a surprising bankruptcy after posting on its website that it owes big debt to multiple creditors.
Fernandes Guitars abruptly shut down and its website does little to explain to its many fans what had happened.
The site offers a simple message:
While the company is known for its budget offerings, its guitars have been played by some very famous musicians.
Green Day’s Billie Joe Armstrong has used his Fernandes Revival RST-50 (based on the Fender Strat) on stage and has said that he has been playing that guitar since he was 10 years old.
The company described its history on its website in Japan, a division of the company that appears to still be operating.
“Over the past few years, the electric guitar market has expanded significantly to include not only young people in their teens and twenties but also people in their thirties and forties.
It can be said that we are now in an era where people can casually play and enjoy music, rather than just listening to it,” the company shared.
Fernandes began operations in 1969 and began making guitars in 1972.
“Today, as Japan’s top guitar manufacturer, the company enjoys support from a wide range of people, from beginners to professional musicians, not only in Japan but also in the United States, Europe, and Asia,” the company added.
Prior to its abrupt shutdown, Fernandes posted a statement on its website. Guitar.com captured the remarks:
“Fernandes Co., Ltd. (hereinafter referred to as ‘Fernandes’) is currently owed a considerable amount of debt to multiple creditors, and unfortunately, it has become impossible to continue business,” the company posted.
The company intends to file for Chapter 11 bankruptcy protection which may be because it hopes to find a buyer.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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