Milwaukee Music Store Sues Gibson

[Dave W]

Gibson involved in a lawsuit? I'm shocked. 

Here's the story.

I really don't know what to think about this one, we just don't have enough information. If the store really was delinquent in its accounts, Gibson might be within its rights to cancel the dealership -- depending on the contract language and state law requirements.

[gweimer]

I'm not completely sure, but I think that's where I got my first Hamer.  They sell on Ebay after buying up auctions and NOS from failed stores.

[Dave W]

The article says they only opened in 2006. Can't be the same place you're talking about.

I do remember Electric City Music in Kaukauna buying up inventory from failed stores. Didn't know they were still around.

Milwaukee, Kaukauna -- no big difference. 

[rahock]

Gibsons' legal department is tougher than most. They pin you down with tight contract and they beat the hell out of you if you fail to hold up your end

Rick

[Dave W]

Gibsons' legal department is tougher than most. They pin you down with tight contract and they beat the hell out of you if you fail to hold up your end

Rick

That's what I've heard, too. But if a retailer isn't paying his bills -- assuming that's the case here -- then he'll eventually suffer the consequences.

I did look up the text of that Wisconsin statute. It protects dealerships from arbitrary cancellations by manufacturers. A dealership has to be informed of a deficiency (financial or otherwise) and given time to correct it, and if it's corrected in time, then a factory can't dump the dealer. This might help the store in its fight against Gibson. Just depends on exactly what happened.