<P> During the "Baldwin era", new models were introduced throughout the 1970s and old favorites continued to be produced . As solidbody guitars rose to prominence in rock, with the harder styles of the era favoring Fender Stratocasters and Gibson Les Pauls, use of hollowbodies fell in popularity . In 1979, after Fred Jr's death, Chet Atkins withdrew his endorsement in response to quality problems and Gretsch's unwillingness to pursue his vision of a nylon - stringed electric guitar . Factory fires in the early 1970s caused serious problems, and production was finally halted by Baldwin in 1981 . </P> <P> In 1985, Gretsch was bought back by Fred W. Gretsch, nephew of Fred Gretsch Jr. and son of the late William "Bill" Gretsch . At that time, drum production was relocated to Ridgeland, South Carolina, where it remains today . The first new guitar model introduced was the Traveling Wilburys model - an Asian import - which looked much like a Danelectro . While this guitar model did little to bolster Gretsch's reputation for producing classic guitars, it served notice that Gretsch was back . </P> <P> After numerous failed attempts to acquire facilities or contract production in the United States, Fred Gretsch and long - time Gretsch employee Duke Kramer, who advised Gretsch, turned to Terada of Japan, and production began there . A range of reissues appeared throughout the 1990s to mixed reviews . They were of generally high quality, but with notable non-vintage details and features . Occasional U.S. - built "Custom Shop" models were offered at significantly higher prices . </P> <P> In the 1980s, rockabilly revival player Brian Setzer rekindled interest in the brand with his band The Stray Cats . His influence continued through the 1990s with The Brian Setzer Orchestra . In 1990, Setzer became the first player since Chet Atkins to be honored with a signature - model Gretsch, the "Brian Setzer 6120", first of a line of Setzer signature models . </P>

When did gretsch stop making guitars in america