It made an ill-fated acquisition of Philips' consumer audio division four years ago for $135m.

Gibson will pull out of that business, and focus on musical instruments.

Chief executive Henry Juszkiewicz, who bought the company in 1986, said the Chapter 11 filing would assure the company's "long-term stability and financial health".

Their guitars are pretty good, but they're not $4,000 good. Gibson bought up a lot of companies and tried to expand its market. They went way too far and took too many risks.

Feds raid Gibson Guitars