The Weston Presidio Era: A New Chapter for Fender

In December 2001, private equity firm Weston Presidio acquired a controlling stake in the company for $57.8 million. 
Just a few years later, in 2005, Bill Schultz (who died in 2006) retired and Bill Mendello, already manager under CBS, became the new CEO of FMIC.
Soon after the other big protagonist of the 1985 buyout, Dan Smith, retired, (he died on September 28, 2016). 
At the beginning of 2008, FMIC acquired Kaman Music Corporation (KMC), the largest independent distributor of musical instruments in the United States, which produced or distributed brands such as Ovation, Takamine, Hamer, Latin Percussion, Gretsch Drums, Gibraltar Hardware, Toca Percussion, Sabian Cymbals and Genz Benz amplifiers.
Old Fender’s sales director, Don Randall, died on December 23 of that year.

Schultz e Mendello (thanks to globalmusictribune)

Old Fender's sales director, Don Randall, the man who gave the name to Stratocaster, died on December 23 of that year.
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Larry Thomas

In 2010, Mendello also retired and was succeeded by Larry Thomas, who had joined the Fender Musical Instruments Corporation board in 2009.
Thomas is remembered for revisiting the American Vintage series and introducing the American Select line.
He played a pivotal role in managing the American Design Experience and establishing FMIC’s first direct office in China.
In September 2011, Thomas opened the 8,400-square-foot Visitor Center at 301 Cessna Circle in Corona to pay tribute to the company’s legacy. ​

In March 2012, Fender announced plans for an initial public offering (IPO), which would have secured Weston Presidio more than $50 million. However, the IPO was withdrawn five months later after potential investors raised concerns about the company’s debt load and the dim outlook for the future of the musical instrument industry. As Larry Thomas stated: “Current market conditions and concerns about economic conditions in Europe do not support completing an initial public offering at what we believe to be an appropriate valuation at this time.”
As of July 10, 2012, the majority shareholders of Fender were the private equity firm of Weston Presidio (43%), Japanese music distributors Yamano Music (14%) and Kanda Shokai (13%), and the longtime investor Servco Pacific (5%).​​

Fender Under Servco and TPG Growth

In the fall of 2012, Servco, in partnership with TPG Growth as an equal-stakes partner, purchased Weston Presidio’s shares in Fender, acquiring a co-ownership stake in the brand.
Later that same year, Fender relocated its operations to the Scottsdale Perimeter Center.
In 2014, the company sold the historic Guild acoustic guitar brand to the Cordoba Music Group.

In May 2014, Fender CEO Larry Thomas, 64, retired from FMIC.  “I am extremely proud of the success we have achieved in my time at Fender,” said Thomas.  “We did a lot in just a few years and I leave feeling like our table is set for the company’s future direction.  This has truly been a wonderful life experience. FMIC is a wonderful company and Fender is a great brand, and I am very thankful to have played a part in the company’s history.”
Scott Gilbertson, who had served as Fender’s interim chief operating officer since October 2013, assumed the role of interim CEO while the company searched for a successor to Thomas.

In 2015, Andy Mooney, Scottish by birth, took over as CEO, succeeding Gilbertson.  Mooney joined FMIC from Quiksilver, Inc. and brought significant experience in growing global brands such as Disney Consumer Products (DCP) and Nike.

Andy Mooney

A guitarist himself, he studied classical guitar in grade school and has been collecting Fender guitars and amps for more than 40 years.
Mark Fukunaga, chairman and CEO of Servco Pacific and co-chair of the FMIC board of directors declared: “Andy has proven success in connecting consumers to brands.  His personal passion for Fender guitars and the company’s long and storied history makes him a great fit for our culture.  We are tremendously excited to have an executive of Andy’s caliber at the helm of Fender and we look forward to great success in the future under his leadership.”

In August 2014, Scott Gilbertson and other members of the executive management team held a two-day business meeting with key North American dealers at the Fender Visitor Center in Corona, CA. During the meeting, they discussed the company’s strategic initiatives and announced that Fender would soon offer its full product catalog through its website, describing the move as an effort to meet the needs and expectations of the modern consumer. They also introduced a series of digital initiatives aimed at enhancing dealers’ customer relationship management capabilities and sales effectiveness tools.

“We are committed to grow our business in partnership with our dealers. As an industry leader, we view it as our obligation to significantly invest in the consumer experience. By investing in digital capabilities and elevating our consumer experience around our brand, products, and services, we expect to drive increased engagement, emotional affiliation, and consumer demand. We believe our strategy will accrue significant benefits across all aspects of our dealer base.”

Scott Gilbertson

At the same meeting where it disclosed its direct-to-consumer plans, Fender announced it would reduce its product lineup by 25 percent and focus on its primary series of instruments—to further streamline its offerings and sell directly to consumers, Fender also sold the Guild acoustic guitar brand to Cordoba Music Group in 2014.
According to dealers who attended the meeting, many were caught off guard, and some even left visibly upset.
At the beginning of 2015, FMIC began selling Fender and Squier brand instruments and electronic products both through its website and via its direct sales department. The website allowed customers to add a Fender guitar to their shopping cart but also directed musicians to local dealers where they could try out and purchase the instruments in person. Notably, the company did not undercut the prices offered by its retail partners.
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To expand the brand into new digital product categories and services, Fender created a new division from the ground up--Fender Digital—and appointed Ethan Kaplan as the company’s first Chief Digital Officer.
This was followed by the launch of a digital learning platform, Fender Play, in 2017, and a practice app, Fender Songs, in 2019—both designed to make it easier for beginners to pick up the instrument and stay committed to learning.
The brand also launched its Fender Flagship eCommerce store on Alibaba Group’s Tmall Global, tapping into China’s fast-growing music scene.
In 2019, Fender introduced the Fender Next program—a platform designed to spotlight emerging talent in the music world, featuring artists such as Christone “Kingfish” Ingram, Larkin Poe, Ashley McBryde, and Tom Misch. The initiative marked a strategic shift beyond Fender’s legacy generation, aiming to connect with a younger, trend-savvy audience. Additionally, the brand has made a concerted effort to actively seek out and showcase more female artists in its lineup.

The Servco Pacific Takeover: Fender’s New Chapter

In a press release issued in January 2020, Fender announced that longtime investor Servco would secure a majority stake through a purchase agreement with TPG Growth, with the acquisition set to take place in February.
Andy Mooney noted the milestones Fender had reached under the joint ownership, saying: “We thank TPG Growth for their contribution on multiple levels, both strategic and tactical, and for their support in expanding into digital products and services.”  Mooney also made it clear that the change in ownership wouldn’t affect the makeup of Fender’s current management: “On an operational level, all will remain the same.  Fender will continue with the same exceptional management team who all have been instrumental in our recent growth.  We look forward to extending FMIC’s long term relationship with Servco who share our core mission to support artists and players at every stage in their musical journey.”

The COVID-19 pandemic, which began in 2020, led many industries to shut down production. Initially, it was seen as a potential death knell for an already declining guitar market. However, this unexpectedly gave Fender’s sales a significant boost. As a result, Fender sold more guitars in 2020 than any other year in its history.
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Unfortunately, what goes up must come down. Two years later, guitar makers faced a tough period. Fender’s new CFO, Matt Janopaul, who was previously the Managing Director of Servco Pacific Capital, revealed that nearly $100 million in gear sales were scrapped by retailers in 2022 as consumer buying habits shifted. Demand shocks weren’t the only challenge for gear brands in the post-pandemic landscape. Supply chain disruptions—ranging from inflation to material shortages—also made production more difficult.

Matthew Janopaul

“You want to make sure you shore up your balance sheet very quickly. And then immediately go, frankly, into sales mode. We set targets. We said, ‘Here’s where we want to be by the end of the year.’ We looked at every single piece of our operating expense infrastructure and said, ‘Where can we either cut costs or slow things down?’”
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Matt Janopaul

So, Fender was forced to put the brakes on a production operation that included factories in the US, Mexico, and Asia.
Reports indicated that Fender laid off 300 employees last August at its California facility, with Janopaul acknowledging that cost-cutting had become essential. The layoffs affected a wide range of positions, from production line workers to senior management. Most of the layoffs impacted the second shift (5 PM to 1 AM) at Fender’s Corona, California production facility, which currently represents the company’s slowest-selling market segment. There were also reports of reduced quality control on guitars built during the night shift.
Additionally, Fender chose not to participate in NAMM from 2021 to 2024. CEO Andy Mooney explained that virtual presentations were not only more cost-effective but also provided a more efficient platform to showcase products to retail partners.
Despite these challenges, Fender had its second-best year ever in 2022, and the launch of new products showed no signs of slowing down.

​Antonio Calvosa