The famous Nashville-based guitar manufacturing company, which rock stars like Slash, Keith Richards, Jimmy Page, Alex Lifeson and Eddie Van Halen have used their guitars, has filed for bankruptcy  that will allow lenders to take control of Gibson.

To apply the agreement, the company and it’s US subsidiaries filed pre-negotiated reorganization cases under Chapter 11 of the U.S. Bankruptcy Code. Gibson made a disastrous acquisition of Philip’s consumer audio division four years ago having forked out $135 million for the deal. The audio division of the company will now be “wound down.”

Gibson’s electronics business had been “trapped in a vicious cycle in which it lacked the liquidity to buy inventory and drive sales,” according to court papers from the management consulting firm assisting the company.

Thanks to their agreement, Gibson’s Musical Instruments and Professional Audio businesses will be able to carry on designing, building, selling and manufacturing Gibson and Epiphone guitars during its reorientation and bankruptcy proceedings.