JULY 2016 $3.00 REVIVING GUILD GUITARS … · it, providing the inspiration for what eventually...

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JULY 2016 $3.00

REVIVING GUILD GUITARSFocusing on building exceptionalinstruments, new owners breathenew life into an iconic brand

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GLOBAL TRADEThe Presidential candidateson trade, and what their proposals would mean forthe music industry. P. 64

REDEFINING RETAIL

FENDER’S NEW PARAMOUNT ACOUSTICS

REVERB.COM

How Quinn The Eskimogrosses $5.0 millionwithout a store or website.

Will it expand the industry by enablingplayers to turn unwantedinstruments into cash?

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70 MUSIC TRADES July 2016

PROFILE The New Guild

Building OnA Storied Legacy

Guild’s new leaders Tim Miklaucic and Jonathan Thomas—guyswho “live and breath guitars”—vow to restore the brand to its for-mer prominence, building guitars “you don’t want to put down.”

sk Tim Miklaucic, founder of Córdoba Music Group, why heacquired Guild Guitar two years ago, and he is quick with ananswer: “It was a once in-a-lifetime opportunity to buy aniconic brand name.” “Iconic” is one of the more over-usedwords in the English language; type it into your favoritesearch engine and nearly 200,000 articles about some “icon-ic” gadget pop up. But, it’s not a stretch to use it to describethe Guild Guitar, an instrument that has figured so promi-nently in the music of the past five decades. Richie Havensused one to open the Woodstock Festival in 1969. Bob Weirand Jerry Garcia toured with them in the early days of theGrateful Dead, and Queen’s Brian May designed a Guildsignature model. In addition, countless photos confirm thatmost of the players who shaped contemporary rock ’n’ roll—Paul McCartney, Pete Townshend, Eric Clapton, Stevie RayVaughan, and Paul Simon to name just a few—frequentlyplayed or performed with a Guild. Guild guitars evenenjoyed a special moment in pop culture. In the late sixties,millions of network viewers watched Tommy Smothers playone each week on the top rated Smothers Brothers ComedyHour.

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Jonathan Thomas with aD20 and Tim Miklaucicwith an M20, the firstproduction guitars fromthe new Guild plant inOxnard, CA.

Unfortunately, Guild’s storied past has been marred bydecades of successive ownership changes and inconsistentmanagement. Yet for all the missteps, the brand continues tocommand the reverence of players worldwide. Miklaucicviews those decades of accrued goodwill as a valuableuntapped asset and integral to the company’s future. “The out-pouring of support since we made the acquisition has beenoverwhelming,” he says. However, as someone who “livesand breathes guitars,” he realizes that Guild’s future ultimate-ly rests on the quality of the instruments it produces. His mis-sion statement for the new venture could be summed up as“Build guitars that people want to play and are hard to putdown.”Since signing off on the acquisition with Fender Musical

Instruments on July 3, 2014, Miklaucic and companyPresident Jonathan Thomas have been devoted full time to the

challenge of delivering on this mission. And, it hasn’t been aneasy task. To start with, Córdoba didn’t buy a going concern,just a collection of assets. Specifically, trademarks anddesigns and 13 53-foot trailers crammed with tooling, produc-tion machinery, and raw materials. The first step in transform-ing truckloads of stuff into a viable guitar business involvedshipping it all cross-country from the Guild plant inConnecticut to a new facility in Oxnard, California, 60 milesnorth east of Los Angeles.A year before the sale, Fender management had tapped Ren

Ferguson to upgrade Guild’s production process and productline. A skilled luthier with more than two decades of experi-ence running the Gibson acoustic operation in Montana, hewas only partially through the process when the decision wasmade to put Guild up for sale. Thomas and Miklaucic weresufficiently impressed with the progress, they retained



The new Guild plant in Oxnard, CA is outfitted with rebuilt tooling and equipment to produce consistent components as efficientlyas possible. Clockwise from the top: A computer-controlled machine cuts tops to exacting tolerances; side bending is performedby a machine that precisely calibrates heat and tension; the finish room boasts an automated line to ensure consistent finish andcuring times; special tooling has been developed for fret work.

Ferguson as vice president of manufac-turing and gave him free rein to contin-ue what he had already started. Ferguson believes emphatically that

building superlative guitars depends onprecision tooling and carefullydesigned processes. In a world whereyou could easily hire a few hundredskilled luthiers, this wouldn’t be soimportant. But since people who canhand-build a guitar are in short supply,the right equipment becomes increas-ingly important to allow average work-ers to achieve exceptional results.When the trucks delivered the toolingand machines to the Oxnard plant,rather than just setting it up and startingproduction, Ferguson painstakinglyrebuilt and upgraded just about everypiece of equipment. The process addedcost and delayed the start of U.S pro-duction by close to a year, but Thomassays it was ultimately worth it. “Rensaw the new factory as a blank canvasand applied years of hard-learned les-sons to improve every process.”

A HERITAGE OF VALUEThe goal of the re-tooling effort was to

make every process as efficient andconsistent as possible, to produce gui-tars that Miklaucic describes as “excel-lent and affordable.” Component partslike ribs, necks, and bridges are shapedon a series of computer controlledlathes for consistency. Whirringmachines may lack the romance of acraftsman using a chisel, but they makefor a guitar that’s easier to assemble,and will have fewer service problems astime goes on. There’s also a side bend-ing machine that uses sensors and acomputer to precisely calibrate heat andtension, yielding parts that mate per-fectly with the back, top, and neck. Aconveyer finish system moves guitars ata precise pace to ensure the properamount of coating is applied and suffi-cient time is allowed to cure. And, thereare tools for precisely positioning thebridge, adjusting fret height, and per-forming every other productionprocess.The tools at the Oxnard plant are state-

of-the-art, but the focus on efficiency isin keeping with Guild’s heritage.Founded in New York City in 1952, thestart-up lacked the storied tradition ofC.F. Martin, or the marketing resources



The Guild product line is one of the industry’s broadest, including arch top jazz gui-tars, flat top acoustics, and solid body electrics including the Bluesbird and theThunderbird top. Above, the M20 and D20 all mahogany guitars, the first to comeoff the Oxnard production line.

of the much larger Gibson Company. Tocompete, founder Al Dronge relied ondelivering exceptional value—guitarsthat could hold their own against moreestablished brands, but at a more acces-sible price. “There’s always been amodesty to the brand,” says Thomas.“The guitars have never been too gaudy,with an ‘everyman’ feel to them. That’sthe tradition we’re aiming for.”The Oxnard plant is now producing

and shipping two satin finish all-mahogany instruments—the M20 smallconcert size, and the D20 dread-

nought—that exemplify that “modesty.”They have no binding, simple appoint-ments, and closely resemble the pareddown models the guitar industry servedup to financially strapped players dur-ing the Great Depression in the 1930s.Ferguson opted to produce these rela-tively simple instruments during thefactory’s start-up phase, to enable anewly hired workforce to master guitarbuilding basics. Later in the year, pro-duction will commence on the moreornate D40 and D50 flattops, historical-ly Guild’s most popular models.

Production is ramping up at a measuredpace, with a near-term goal of 3,500guitars annually.Like every other major guitar maker,

Guild augments its U.S.-producedinstruments with a line of Asian-madeguitars at popular price points. Whatdistinguishes Guild is the fact that itstrademark has adorned the headstocksof an extraordinarily broad range of gui-tars: big box jazz guitars such as theManhattan series, hollow-body electricslike the Starfire, solid bodies includingthe Polara, and flattops in all shapes andsizes. Guild electrics are sourced inAsia, as are the competitively pricedacoustics. However, it’s the U.S.-madeguitars that define the character of thecompany and cast a halo that lends mar-ket credibility to the imports.

AN ENVIABLE PROBLEMThe scale of the Guild product catalog

has presented Thomas and Miklaucicwith enviable challenges: What to pro-duce, and how to define the Guild“character.” In seeking direction,they’ve scoured guitar shops nation-wide, amassing a comprehensive col-lection of vintage Guilds, and they’veexamined each instrument to seewhether it’s still relevant and how itmight be improved with contemporarycomponents. “We’re trying to be strate-gic in what we decide to introduce,”says Miklaucic. “We don’t have theresources to do it all.” The pair is alsodrawing on their somewhat unusual per-sonal experience as players and “guitargeeks” to enhance the classic Guilddesigns. As a teenager, Miklaucic remembers

pleading with his parents for an electricguitar. They got him a nylon-stringedguitar instead, explaining to him that “ifhe mastered classical technique, he’d beable to play anything.” He says today,“they were wrong; classical techniquedoesn’t get you anywhere on a Strat.”But, after getting over his initial disap-pointment, he got hooked on classicalguitar and the entire Spanish guitar tra-dition. At 13, on a family vacation toSpain, he bought a classical guitar for$100. When he returned to Los Angeles,his guitar teacher offered him $300 forit, providing the inspiration for whateventually became the Córdoba MusicGroup. Borrowing $1,000 from an



uncle, Miklaucic began importingSpanish guitars into the U.S. andreselling them. The profits financedmuch of his college education.

EXPLOSIVE SOUND QUALITYAfter college, he went into real estate,

but continued trading in Spanish guitarsas a “hobby business.” On annual tripsto Spain in the pre-internet era, he drovearound the countryside, forged relation-ships with a number of local guitar mak-ers, and began selling their instrumentsout of The Guitar Salon, his small shopin Venice, California. In 1996 he estab-lished Córdoba guitars, but 1997 was anearly turning point for the business. Thatyear, the Gipsy Kings approached himabout getting a thin-bodied nylon stringguitar with good electronics, and a cut-away that they could use on their U.S.tour. He contracted with a Spanishworkshop, delivered a few instruments,and soon found himself awash in ordersfor more. The unexpected response con-vinced him that there was a market fornon-traditional nylon stringed guitars,

and he decided to go into the guitar busi-ness full time.The resulting Córdoba Music Group

has built a sizable business offeringnylon stringed instruments designed forelectric and steel string acoustic players.Córdoba doesn’t refer to its guitars as“classical,” “because you can play any-thing on them,” says Miklaucic. Unliketraditional guitars from Spain, Córdobamodels feature a neck that’s 2mm thin-ner, with a slimmer profile, and 14-frets, instead of 12. “We realized thatthere were a lot of steel string playerswho loved the sound of a nylon stringedguitar, but couldn’t get past the playa-bility issue,” he says. Retailers enthusi-astically embraced Córdoba instrumentsbecause they represented “plus” sales,and because their uniqueness deliveredbetter than average margins. As theCórdoba wholesale business expanded,Miklaucic transitioned Guitar Saloninto a broker in high-end and vintageclassical guitars, including a fewAntonio de Torres instruments thatcommand up to $400,000. (de Torres

(b.1817-d. 1892) is the noted Spanishluthier credited with developing what isthe modern classical guitar.)How does a background in nylon-

string guitars have any bearing on abrand like Guild, steeped in folk, rock,and jazz? For Miklaucic, it comes downto what he terms “lightness” and“explosive character.” He elaborates,“A great de Torres instrument weighsabout two pounds, but despite the feath-er weight, it puts out more sound thanyou think possible. I want Guilds tooffer that same explosive sound quali-ty.” To that end, the engineering staff isrefining the bracing and top dimensionsof the acoustics. He says they’ll still beeminently recognizable to Guild fansbut will deliver “more power and pro-jection.” These attributes are evident inthe M20s and D20s coming off theOxnard production line.Jonathan Thomas had a more conven-

tional introduction to the guitar, butcould very well have been the targetcustomer Miklaucic had in mind whenhe hatched the idea for Córdoba. His



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father Larry headed Guitar Center forseveral decades, and later served asFender CEO, and Jonathan grew up sur-rounded by every type of guitar. Afterplaying his father’s early Gibsons,Fenders, and Martins, he says, “I want-ed to dig deeper into the guitar’s historyand understand where it all came from.”That led to experimentation withSpanish guitars, and later a day job atGuitar Salon. As Córdoba and GuitarSalon grew, he took on expandedresponsibilities and was named presi-dent in 2012.Thomas’s experience as a musician

also sharpened his appreciation for theGuild brand. In the late 90’s, whenGuild was largely dormant, he says “Ihad a friend with a Starfire that caughtmy attention. You could see the Gibsoninfluences in the design, but it was dif-ferent, and the fact that there weren’tthat many of them made it even cooler.Then I came across an old F-50 mapleJumbo acoustic and fell in love with thebrand.” For Thomas, the fact that Guildhas been neglected in the recent past

adds to its appeal. “When we talk todealers and players, they all seem to belooking for something different,” hesays. “Guild answers that, and with itsrich history in both acoustics andelectrics throughout the ’50s, ’60s, and’70s, the brand is unique and has a storythat needs to continue.”

Thomas and Miklaucic are under noillusions that cracking into a competi-tive guitar market, even with a legacyproduct like Guild, will be easy.Fortunately, though, they have the luxu-ry of time on their side, without pres-sure to meet specific sales timetables ormarket share goals. Their strategy couldbe summed up as “if the guitars areright, the rest of the business will fallinto place.” However, that doesn’t meanthey don’t feel a sense of urgency. Intwo years, they have assembled a cohe-sive Guild product line, set up a newfactory from scratch, and substantiallyexpanded distribution around the world.“We just want it all to happen faster,”adds Miklaucic.The progress to date, though, has fueled

a sense of optimism. Reflecting on hisearliest days, importing a handful ofhandmade Spanish guitars, Miklaucicsays, “I never dreamed that Córdobacould have gotten this big.” He adds,“But Guild, with such a broad productline, is going to be even bigger.”www.guildguitars.com

MUSIC TRADES July 2016 79

Ren Ferguson (left), with Tim Miklaucicand Jonathan Thomas, has directedthe manufacturing effort, treating thenew plant as a “fresh canvas.”

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GUILD GUITARS GOT ITS START in a small loft in lowerManhattan with a staff of five. The year was 1952, and founderAvram “Al” Dronge sensed an opportunity in the guitar busi-ness. Dronge had been born in Poland in 1911, but his familyfled three years later, first to Paris, and then to New York. Algrew up along Park Row, then the music retail hub in New YorkCity. He taught himself guitar, played professionally throughoutthe city, and opened his own store in New York in the mid-1930s. He eventually sold the store and made a small fortuneimporting accordions.In the 1950s, Epiphone, also based in lower Manhattan, was

struggling to deliver, plagued by union strikes and familyinfighting. With dealers clamoring for a new source of supply,Al saw an opening in the market. He recruited George Mann

and five other former Epiphoneemployees and began building jazzguitars. In the early years productionwas so limited, Al personally playedeach guitar before it was shipped. Thatchanged when jazz great Johnny Smithsigned on as an endorser and salesspiked. To meet growing demand, pro-duction was shifted to a larger facility,across the river from Manhattan, in

Hoboken, New Jersey.In the mid-’50s, Washington Square in

Greenwich Village, a stone’s throw fromthe Guild factory, was the epicenter of the growing folk musicboom. Al was quick to recognize the trend and augmentedGuild’s jazz guitars with a line of flat top acoustics, includingthe F-40 and F-50. As rock ’n’ roll came to the fore in the early1960s, he added electrics, including the Starfire and Polaramodels.Over the years Guild guitars found their way into the hands of

the musicians who defined contemporary music, includingJohnny Smith, Duane Eddy, Roy Orbison, John Lee Hooker,Merle Travis, Paul Simon, Keith Richards, Dave Davies,George Benson, Buddy Guy, Howlin’ Wolf, Richie Havens,Bonnie Raitt, Steve Miller, Eric Clapton, Muddy Waters, DocWatson, Ry Cooder, and George Strait to name just a few.The arrival of the Beatles in 1964 triggered unprecedented

industry growth and attracted the interest of outside investors.With industry sales on a tear, CBS purchased Fender guitars,Macmillan Publishing acquired C.G. Conn Ltd., and Gulf &Western acquired Unicord, the forerunner of Korg USA.Dronge sold Guild to Avnet, an electronics parts distributor.With Avnet’s backing, Guild relocated production to a muchlarger facility in Westerly, Rhode Island and enjoyed recordsales.Dronge died in 1972, when the plane he was piloting crashed

en route to the Westerly plant. Despite his passing, Guild con-tinued to thrive, with prominent endorsers such as JohnDenver keeping the guitars in the public eye. Sales were alsoaided by the first dreadnought-style acoustic with a cutaway.Avnet exited the music industry in 1986, selling Guild to agroup of Nashville investors. The company struggled, wentthrough several ownership changes, and filed for bankruptcybefore being acquired by Fender Musical Instruments in 1995.Fender brought financial stability to Guild, but never seemed

to give it the attention it needed. The Westerly plant was shut-tered in 2001 and Guild production was shifted to the Fenderplant in Corona, Mexico. Three years later, production wasmoved again to Fender’s Tacoma, Washington factory. In2008, after Fender had acquired KMC Music, Guild productionwas moved yet again to the Ovation guitar plant in NewHartford, Connecticut.



Guild’s Gallery of Greats—noted players who used Guild guitars included jazz great Johnny Smith, Paul McCartney, theSmothers Brothers, and Bob Weir and Jerry Garcia in the early days of the Grateful Dead.

Richie Havens opened the Woodstock Festival in 1969, per-forming with his Guild D40.

Guild founder AlDronge.

Guild’s Illustrious History

JULY 2016 $3.00 REVIVING GUILD GUITARS … · it, providing the inspiration for what eventually...

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