This situation raises some question: What would they do with these guitars? Would retailers return them? Could they re-purpose or re-brand them?
When a celebrity name ends up on a product, a risk is involved. People are human. Some make mistakes, while others [as in this situation] do some genuinely bad things. These days, one wrong look, or one accusation, and you are done. Obviously, he's gone beyond an accusation.
I don't think that this would damage the brand of PRS, but I think it would cause damage to this specific model.
I'm genuinely curious about the business decisions that are made as a result of horrible situations such as this one.
People will talk about "separating the art from the artist." Sometimes it can be done, other times it cannot. I think this one gets filed under "cannot."