Fernandes Guitars – the Japanese brand best known for its innovative electric guitar pickup, the Sustainer, and its range of cult affordable guitars – has filed for bankruptcy yet again, after the cessation of operations in July 2024 and initial bankruptcy filings that were later withdrawn.
However, unlike last year's report, there may be a glimmer of hope for Fernandes fans worldwide.
The company officially received a decision to commence bankruptcy proceedings from the Tokyo District Court on July 9, with Attorney Taro Awataguchi appointed as the bankruptcy trustee. According to a report released by TSR, the total debt accrued amounts to around 730 million yen [approximately $4.98 million] owed to approximately 60 creditors.
“In recent years, the company's performance has deteriorated due to the rise of the secondhand market and intensifying competition,” states the report [translated from Japanese].
“Although the company attempted to make a comeback by creating catalogs and releasing new products, sales fell to 166.08 million yen [approximately $1.31 million] in the fiscal year ending January 2022, and the company recorded a final deficit of 24.14 million yen [approximately $164,513]."
The report goes on to say that, as the company's credit declined, its cash flow reached its limit, leading it to cease operations in July 2024. However, before the court granted proceedings, according to an inside source, “part of the ‘FERNANDES’ trademark has been ‘transferred to another company.’”
Whether this could lead to a revival, a hybrid revival, or an acquisition of sorts remains to be seen – especially since the company itself hasn't issued any new statements, while its official website remains offline.
The Saitama-based company started in 1969 and evolved to receive worldwide recognition, even becoming the guitar du jour in the ’90s after being wielded by members of Metallica and Green Day – particularly Kirk Hammett and Billie Joe Armstrong.
In Japan, the guitars were often the go-to choice for players in the visual kei genre of rock, with X Japan and Buck-Tick notably championing the brand.
The company went on to produce a multitude of signature guitars over the years, with Robert Trujillo, Dave Kushner, and Brad Gillis among its artists, alongside Japanese stars like Hotei and Hide – with Keanu Reeves even being among its endorsees at one point.
