The company started as a distributor of flamenco guitars sub-contracting to Japanese factories to build them.

Early manufacturing was done by Kawai Gakki who had guitar building experience from their acquisition of Teisco in 1967.

The growing second-hand market and intensifying competition adversely affected sales, and the company reported debts of 434 million yen for the year ending January 2024.

[4] Despite its high production figures, Fernandes is better known in the United States for its Sustainer system, which uses electromagnetism[5] to vibrate a string for an extended period, so long as the user continues to fret a note.

Fernandes continued to manufacture guitars that cover the range from inexpensive starter models to custom instruments.