The Gibson Guitar Company, which got it's start in Kalamazoo over a century ago is facing the possibility of bankruptcy.The company which was founded in Kalamazoo in 1902, but moved to Tennessee in the 1980's, has fallen on hard times.

Multiple reports say Gibson is running out of financial options.

CEO Henry Juszkiewicz is thought to be in a race against time to decide whether to exchange the company's debt, look to try and pay it off using his equity or try to declare the company bankrupt.- CNBC

The company's most recent Chief Financial Officer, Bill Lawrence, left Gibson after only a year in the job, and just before a major debt payment is due.

Gibson has hired an investment firm to help it navigate through this financial crises, but in the face of that announced that CNBC quoted a company statement:

Gibson issued a statement that said an ongoing streamlining strategy would soon help it record the "best financial results the company has seen in its history within the next year." It also said the firm would have the ability to pay back the company's debt in whole within seven years.

Dave Benson/TSM

After Gibson bailed on Kalamazoo, the craftspersons who stayed behind formed the Heritage Guitar Company, which has been in the news recently, with the announcement that it had partner with among others, Rolling Stone Magazine and locally with Plaza Corp to create an entertainment center at the site of the original Gibson Guitar Factory site at 225 Parsons.