Worrying news from Northern Ireland where it appears – according to reports in the Belfast Telegraph – that Lowden Guitars is struggling financially and is preparing to lay off staff.
According to the Telegraph: “Sources close to staff at George Lowden Guitars Ltd told Belfast Telegraph some employees have been informed their jobs are at risk because of ongoing losses due to a decline in demand.”
In response to this, Managing Director Aaron Lowden has said in a statement, “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.”
“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.”
However, according to the Telegraph report, many members of staff have received a letter signed by the Managing Director which states that Lowdens “has a business need to become more efficient and reduce operational costs due to continued loss-making because of demand reduction in the market.”
Apparently, meetings were held last week with staff whose jobs are thought to be under threat. The individuals in question were asked to make suggestions as to how they could avoid being made redundant and explain why they should not be let go.
The Telegraph’s report also included research that showed that Lowdens owe £3.8 million to creditors and currently hold £3.1 million in assets. Concerningly, they are said to hold just £262,000 in the bank and in hand.
Lowden’s reputation has grown over the years to the extent that it is now regarded as one of the leading names in acoustics. Lewis Capaldi, Eric Clapton and Ed Sheeran all play Lowdens and indeed Sheeran partnered with the company in 2018 on the Sheeran by Lowden range.
The company celebrated its 50th anniversary last year by launching a limited edition anniversary collection.
