The company was founded in 1883 in Brooklyn, New York by Friedrich Gretsch, a 27-year-old German immigrant, shortly after his arrival to the United States.

Through the years, Gretsch has manufactured a wide range of instruments, though they currently focus on electric and acoustic guitars and drums.

Electric guitars before 1957 used single coil pickups that have significant hum problems as an inherent part of their design.

His shop was designed for the manufacture of banjos, tambourines and drums, with the company experiencing some success catering to marching bands.

[2][4] The company ultimately owned or operated six properties in the immediate area, including a warehouse on Dunham Place.

Soon after taking over, Fred Jr. left to serve as a Navy commander, leaving the business in the hands of his younger brother, William Walter "Bill" Gretsch.

[2] By the mid-1950s the company introduced several models, including the 6120 "Nashville," and the 6128 Duo Jet chambered "solid body", which was played by Bo Diddley.

Mid-1969, Baldwin moved Gretsch instrument manufacturing operations from Brooklyn to a plant in DeQueen, Arkansas.