Day: February 25, 2021

Fender hits the appropriate notes

The Contained in the Thoughts of the CEO interview sequence explores a variety of vital choices confronted by chief executives world wide. For extra perception, see PwC’s CEO Survey.

Nearly a year into the COVID-19 pandemic, millions of us have taken up new hobbies, such as baking bread, bicycling, bird-watching — and playing guitar. That’s beautiful music to Fender Musical Instruments Corporation, the market leader in the US$8 billion stringed instruments market, especially after it initially looked like 2020 was going to be a bust. When lockdowns began last year in March, Fender CEO Andy Mooney went into belt-tightening mode, canceling orders; shuttering its headquarters in Scottsdale, Ariz., and Los Angeles; closing factories in Corona, Calif., and Ensenada, Mexico; and furloughing production workers.

Then, in what Mooney described as a goodwill gesture, the private company — majority owned by Hawaii-based Servco Pacific Capital and Tokyo-based Yamano — offered Fender