Staff members at the world-renowned Lowden Guitars – the company that, in 2019, partnered with Ed Sheeran on the Sheeran by Lowden range – are allegedly facing redundancy.
According to the Belfast Telegraph, “Sources close to staff at George Lowden Guitars Ltd told Business Telegraph some employees have been informed their jobs are at risk because of ongoing losses due to a decline in demand.”
However, in a statement supplied to Guitar World, Lowden Guitars' Managing Director, Aaron Lowden notes, “We are carefully assessing how best to navigate current industry challenges," following a slowdown in the global guitar market and “the natural end of the acoustic guitar boom experienced during the COVID-19 period.”
Lowden insists, “No decisions have been made and we are engaging closely with our entire team to explore all viable options, including cost-saving measures that could help us avoid redundancies wherever possible and strengthen the company for sustainable future growth.”
According to the Telegraph, several staff members received a letter signed by the Managing Director, stating the company “has a business need to become more efficient and reduce operational costs due to continued loss-making because of demand reduction in the market.”
Meetings were reportedly held last week with those potentially at risk of losing their jobs. These individuals were then “invited” to offer suggestions for ways to avoid being made redundant and explain why they should not be selected. According to the journal’s reports, the Managing Director “outlined his willingness to communicate further with staff,” with further meetings with affected individuals slated for later this month.
The Telegraph's research also revealed that the company's accounts were last filed for the year ending March 31, 2024. The company – George Lowden Guitars Limited – held £3.1 million ($4.2 million) in assets at the time, of which £2.3 million ($3.12 million) was stocks, £586,000 ($796,060) owed by debtors, and £262,000 ($355,929) cash at bank and in hand.
Furthermore, it owed £3.8 million ($5.16 million) to creditors – due within one year – with a further £137,000 ($186,116) due after that. The investigation also showed that, of this amount, £1.8 million ($2.45 million) was owed to group undertakings, £535,000 ($726,762) was due in bank loans and overdrafts, and £694,000 ($942,761) was owed to trade creditors.
Founded in 1974 by George Lowden, the Northern Irish company has grown in reputation over the years, with Ed Sheeran, Eric Clapton, and Lewis Capaldi all wielding its guitars.
Last year, the company celebrated its 50th year in business and unveiled a collection of 50th Anniversary acoustic guitars to celebrate the significant milestone.
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