Fernandes Bankrupt

[scottcald]

This guy showing it's announced on their website etc.  They say the used market is what did them in.  

 

[RobB]

A nearly 60yr run in a shrinking MI environment is an accomplishment. They didn’t have much of a foothold in the States. Apparently, they didn’t woo Kirk Hamster enough to keep him on as an endorser. Other famous musicians would have logically followed his lead and signed on. Too bad. It might have been a different outcome for them today  

Hmmmmm…? Sounds like a familiar story. 

Edited July 18, 2024 by RobB

[topekatj]

Sad to hear. Made me think of the song linked below. 

 

Edited July 18, 2024 by topekatj

[hamerican gigolo]

They were great instruments that never really caught on here in America. Here it's Fender, Gibson & then everyone else. 

[Disturber]

Never played a Fernandes. I know pretty much zero about the brand. Where where they made?

[scottcald]

Not sure about the recent stuff, but Japan is the majority of it. This is Burny as well, so that’s also a bummer. 

[crunchee]

IIRC, I think this is the first time I've heard of a guitar company formally acknowledge the second-hand market as a factor in their demise.  They have grumbled about it here and there in the past though, as in a company's gear being it's own worst/best competition when bought used:

Fernandes Guitars Bankruptcy: Iconic Brand Ceases Operations - Premier Guitar

Edited July 18, 2024 by crunchee

[bubs_42]

Someone is sitting on Strat Head Fernandez Strats are about to be able to cash in soon. 

[DaveH]

15 hours ago, RobB said:

Apparently, they didn’t woo Kirk Hamster enough to keep him on as an endorser.

Too bad they didn't market a wah pedal.

[tbonesullivan]

Well that stinks. I guess they were never really able to break much into the world market like ESP and Ibanez. I don't think I ever saw one for sale new or used, I just knew that a lot of people had their strat clones. I think the most famous Fernandes out there would be the one owned by Billie Joe Armstrong, a Sonic Blue Fernandes RST from 1981-82 that I think his mother bought from his guitar teacher George Cole.

[RobB]

15 minutes ago, tbonesullivan said:

I think the most famous Fernandes out there would be the one owned by Billie Joe Armstrong, a Sonic Blue Fernandes RST from 1981-82 that I think his mother bought from his guitar teacher George Cole.

Fripp and Steve Hackett used Fernandes LP clones with Floyds/Sustainers. Nowhere near as famous as BJA, of course.

[tbonesullivan]

4 minutes ago, RobB said:

Fripp and Steve Hackett used Fernandes LP clones with Floyds/Sustainers. Nowhere near as famous as BJA, of course.

I'm seeing stuff saying that Hackett got the goldtop LP with a floyd from Gary Moore's estate.

Mark Knopfler also used one early on. I'm sure we'll be hearing a lot more about people who use them early in their careers.

[RobB]

1 hour ago, bubs_42 said:

Someone is sitting on Strat Head Fernandez Strats are about to be able to cash in soon. 

I’m not holding my breath. Maybe the late-70s/early-80s models. I doubt mine will appreciate very much:

Edited July 18, 2024 by RobB

[bubs_42]

I never thought Hamer Prototypes would triple in price either. Lol

[Travis]

Isn’t Brad Gillis known for his red Fernandez Strat with early Floyd Rose (no fine tuners)….?

[Jimbilly]

I remember two trustworthy local dealers in the late 80s who had them, the word was that they were good quality imports, I'm pretty sure that the first locking nut I saw was on one of those, I want to recall that tag-price would have been around $400-500.  A good friend moved to Japan for two years and taught English there, he was a bassist too, he told me that the locals he got to know in Japan considered Fernandes to be starter/beginner instruments, they all wanted usa Fenders, I think he brought a jazz bass or two over to sell after visiting home. The best local player I know in person has a Fernandes, among a few other pieces. 

 Are we sure Fender didn't have a hand in the demise of Fernandes??  

[Jimbilly]

12 minutes ago, bubs_42 said:

I never thought Hamer Prototypes would triple in price either. Lol

I did pay $199 for my proto ii, and it was on the wall at that pawn shop for a quite a while.

[RobB]

On 7/18/2024 at 1:18 PM, Jimbilly said:

Are we sure Fender didn't have a hand in the demise of Fernandes??  

Yes. Fujigen Gakki has been Fender's go-to mfrs for their import line. No affiliation with Fernandes.

Edited July 20, 2024 by RobB

[DarkHammer]

20 hours ago, crunchee said:

this is the first time I've heard of a guitar company formally acknowledge the second-hand market as a factor in their demise.  They have grumbled about it here and there in the past though, as in a company's gear being it's own worst/best competition when bought used:

Fernandes Guitars Bankruptcy: Iconic Brand Ceases Operations - Premier Guitar

that is kind of lame.

" in recent years, the company's performance has deteriorated due to the emergence of the second-hand market"

Seriously? People didn't sell used guitars before? Pre-owned market didn't just emerge in recent years. Used gear has been around for ages, but it did Fernandes just now...makes no sense

Edited July 19, 2024 by DarkHammer

[Jimbilly]

14 minutes ago, DarkHammer said:

that is kind of lame.

" in recent years, the company's performance has deteriorated due to the emergence of the second-hand market"

Seriously? People didn't sell used guitars before? Pre-owned market didn't just emerge in recent years... Used gear has been around for ages, but it did them just now...makes no sense

I think there's something going on due to Reverb: there's been an oversupply of used guitars and amps for a while, but hundreds of new (bedroom/basement) guitar stores that can now exist online, with a fair bit of inventory that they're in no real rush to get rid of.  Small storefronts have an incentive to move dated inventory, but the guy selling as a hobby out of his basement 'store' has much less motivation to move  inventory.   For example, there are current 842 Deluxe Reverb's fs on Reverb, roughly steady since May, but up from 785 in March.  

[Disturber]

15 hours ago, bubs_42 said:

I never thought Hamer Prototypes would triple in price either. Lol

Yeah, but they have the TRIPLE pickup. Do your maths.

[zorrow]

21 hours ago, Travis said:

Isn’t Brad Gillis known for his red Fernandez Strat with early Floyd Rose (no fine tuners)….?

Yes. I was going to mention Brad Gillis, but you beat me on that. Here’s an old ad:

Brad Gillis is a guitarist that has inspired me enormously. So I tried one once; it was for sale in the now-defunct Italmelody music store in Montreal. It was very clean, quite cute little Strat. Sadly, I didn’t like its skinny neck and the feeling of playing it.

I guess the guitars of our heroes aren’t necessarily the guitars that we end up liking. 🤷🏻‍♂️

 

[zorrow]

A shame they’re going OOB. 🙁

Now I wonder what will happen to the Fernandes Sustainer. Several well-known players have used it for years. Perhaps Fender or Ibanez will buy the technology?

[RobB]

On 7/18/2024 at 4:36 PM, DarkHammer said:

that is kind of lame.

" in recent years, the company's performance has deteriorated due to the emergence of the second-hand market"

Seriously? People didn't sell used guitars before? Pre-owned market didn't just emerge in recent years. Used gear has been around for ages, but it did Fernandes just now...makes no sense

Their statement does smell fishy. I'm hoping @BizProf will chime in on this thread.

Edited July 19, 2024 by RobB

[Biz Prof]

2 hours ago, RobB said:

Their statement does smell fishy. I'm hoping @BizProf will chime in on this thread.

Since you asked....

I suspect a larger than expected used guitar inventory is impacting new guitar sales overall, but hurting some makers more than others.  Recall that guitar sales spiked during the pandemic, and that was roughly 3-4 years ago.  At least some percentage of those buyers were newbies who didn't stick with it. Others were existing players looking to overcome boredom and isolation. Then, there's good old fashioned GAS.  That spike simply wasn't going to continue, thus the moniker "spike". Short lived.

FMIC, Gibson, Ibanez (Hoshino), Yamaha, and ESP have larger market shares, dealer networks, brand recognition, and general consumer interest than virtually all other (electric) brands.  All can more more easily weather cyclical demand. Fernandes was always a marginal player in the global market, and over 40+ years, it simply never generated a unique identity with its product line that garnered either an A-list endorser or sustained interest from buyers.  If Fernandes had developed a product line like Yamaha's Pacifica, we wouldn't even be having this discussion. But they didn't, so here we are.

FWIW, this reply and $2 will get you a large coffee from McDonald's or Sheetz.

 

Edited July 20, 2024 by Biz Prof