Fernandes Guitars files for bankruptcy, says it’s “become impossible to continue doing business”
Since 1969, Fernandes Guitars has slowly made asserted itself as a go-to provider for budget import guitars. However, the Japanese company has announced that it has filed for bankruptcy.
The company, best known for its lines of Fender and Gibson replica guitars and Sustainer electric guitar pickup, shared the news on 13 July. The company cite “a considerable amount of debt” to be one of the main contributing factors.
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The statement on its website reads: “Fernandes Co., Ltd. (hereinafter referred to as ‘Fernandes’) is currently owed a considerable amount of debt to multiple creditors, and unfortunately, it has become impossible to continue business.”
“We apologise for the inconvenience caused to creditors and related parties, but in light of the total amount of debt, Fernandes plans to file for bankruptcy proceedings as soon as possible,” the statement continues.
“Creditors and business partners who have claims or debts against Fernandes will be contacted in writing by the attorney representing them in the bankruptcy proceedings… We apologize for the inconvenience and thank you for your patronage over the years.”
According to Tokyo Shoko Research, Fernandes Guitars owed 433.89 million yen (approximately £2.1m) as of January of this year. The report asserts that the second-hand market has played a huge role in the debt, as well as an increasingly competitive market.
Fernandes’ Fender and Gibson replicas have made their way into the hands of many musicians. Green Day’s Billie Joe Armstrong has proudly paraded his Fernandes Revival RST-50 (based on the Fender Strat) onstage for years, having owned it since the tender age of 10.
Metallica’s Kirk Hammett also loves himself a Fernandes guitar, his FST-13 appearing on the cover of Metallica’s The $5.98 E.P.: Garage Days Re-Revisited.
This isn’t the first time a guitar giant has had to file for bankruptcy in recent years. Gibson infamously filed for bankruptcy in 2018. However, Gibson had the ability to get back on its feet with the help of a company restructuring and a change in leadership.
Of course, there’s still time for someone to swoop in and buy the company out. The brand has its perks, with its respected guitars, basses, and pickups. Fernandes has also signed licensing deals with a slew of notable artists, such as Robert Trujillo and even Keanu Reeves for a short stint, so it would certainly be a strong brand to back. Essentially, Fernandes’s future is still in the balance.
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Source: www.guitar-bass.net
