Iconic Guitars has recently announced a significant restructuring, which includes staff layoffs, as part of a strategic reorganization. This decision comes in the wake of a disrupted partnership with BC Rich, involving a failed purchase order for the limited-edition Stranger Things Warlock guitars.
Iconic Guitars – UPDATE 25/01/24
Kevin Proctor from Iconic Guitars reached out directly to Guitar Bomb today, As he wants to set the record straight about what happened to his business.
Below, Kevin explains the story in some more detail.
Please understand that the Stranger Things PO default was the tip of the iceberg. The larger default came this year with the second default on a purchase order for an additional 386 guitars. We were able to pivot on the ST Warlocks rather quickly, which is a whole other story in itself. This PO for 2023 was the real nail in the coffin. I have done my best to let my initial statement stand. But, the fact is the Stranger Things default was not the largest default.
I’d just like for the story to be accurate. As much as the Stranger Things stuff sucked, (about $120k) it wasn’t a death blow. It was certainly a setback in our financial planning, expectations and production planning had to be rearranged. But, it was caught soon enough so what damage was caused was not as damaging compared to this year’s huge default.
Guitar Bomb will update this article, with more information, as it becomes available. We have also reached out to BC Rich today for comment.
Iconic Guitars
In a heartfelt video released on YouTube on January 19, Kevin Proctor, the founder of Iconic Guitars, shared the emotional toll of the company’s decision to cease operations at its Carlsbad, California facility, leading to the dismissal of all staff at this location.
Stranger Things Warlock
Proctor highlighted that a key issue leading to this restructuring was BC Rich’s inability to fulfill a purchase order. BC Rich, having designated Iconic Guitars as the original equipment manufacturer for the Stranger Things Warlock guitar – famously featured in the Season 4 finale of the series – initially commissioned a production of 400 guitars. Unfortunately, due to lackluster demand, the order was halved, leaving Iconic Guitars with unallocated inventory and financial strain.
Broken Agreement
“We never completed the full order of Stranger Things Warlocks,” Proctor explained. He described how the abrupt halt in the purchase order by BC Rich led to excess inventory, affecting the company’s operations and financial health. “This situation not only impacts our inventory but also tarnishes my personal and professional relationships with our suppliers,” Proctor added, expressing his disappointment over the broken agreement and its repercussions.
The incident reflects the volatile nature of such partnerships in the guitar manufacturing industry and underscores the challenges faced by businesses in adapting to market demands. Iconic Guitars’ experience serves as a cautionary tale for companies navigating similar partnerships and market dynamics.
