Longbow, any specifics? Aside from the rosewood fiasco, what do you think were the missteps?
New management got them into industries they didn't have experience in, and that were not guaranteed to be profitable. They got hugely invested in them, and continued pouring money into them even when the figures were poor. They had ample opportunity to cut unprofitable portions of the business but instead chose to keep going without making cuts to ensure the business survived. Then let it run into the ground, and eventual bankruptcy.
The bankruptcy declaration may have been the only good management move they made. I haven't checked the details of their declaration, but depending on how they did it, they may be able to restructure and revive the company - they should stick to guitars and other areas they're intimately familiar with and find a way to make those profitable again.
I think it's unlikely the brand will disappear or change significantly unless the management is insanely inept.