Fred Gretsch bought the family guitar brand back from Baldwin in 1985 and relaunched it

Friedrich Gretsch founded the company in Brooklyn in 1883, making banjos, drums and guitars. The family sold Gretsch to Baldwin Piano in 1967; Baldwin mismanaged the brand, and after 17 years guitar sales were at zero — no Gretsch guitars had been made for years.

In 1985 Fred Gretsch, the founder's great-grandson, and his wife Dinah bought the family business back. Drums continued for a year at Baldwin's Arkansas factory before moving to Ridgeland, South Carolina. To relaunch guitars, long-time employee Duke Kramer came out of retirement and built new specifications from vintage instruments owned by collectors like Randy Bachman.

It took five years of work, but the first lineup of new Gretsch guitars appeared in fall 1989 and was a hit. The company calls the buyback 'the year today's Gretsch was saved' and the start of its Second Golden Age.

The brand returned to family hands in 1985; new Gretsch guitars launched in fall 1989 and began the 'Second Golden Age of Gretsch'.

The family name and design heritage were worth more to the family than to Baldwin.

They rebuilt the product from vintage originals rather than reviving old tooling.

Keeping the drum line running generated cash while guitars were relaunched.

Fred and Dinah led the brand personally for decades.

When a family firm is mismanaged by outsiders, a descendant can rescue it by buying it back, rebuilding the product from scratch, and relaunching under the original name.

Gretsch grew into one of the most respected guitar and drum brands, with famous players and new product lines, remaining family-owned through Fred and Dinah Gretsch's leadership into the 2020s.