Unfortunately, only a few years later, Valco dissolved under the weight of competition from the Japanese market, inventory mismanagement, mounting debt and more. ![]() In 1967, Valco bought the company and continued to produce Kay guitars, the only notable change being the name on the headstock, which now read Valco. Home to Harmony, Lyon & Healy, and Valco – itself responsible for National and Supro – Chicago was a competitive location for Kay Guitars to set up in. Around this time, Kuhrmeyer also poached three luthiers from another local rival, Lyon & Healy, to help further the design of his company’s guitars, particularly their archtops. ![]() This work, though, was sub-contracted to Valco, a competing independent company, in the 1950s. As if that wasn’t enough, Kay also made amplifiers.
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