After his non-compete clause with CBS (who had purchased Fender in 1965) expired, and his working relationship with Music Man ended, Leo Fender was eager to create a new line of instruments. In 1980, he co-founded G&L (which stands for George & Leo) with his long-time associate George Fullerton and veteran salesman Dale Hyatt. The new company was formed to leverage Leo's latest design ideas, which he famously declared were his "best instruments I have ever made".
Leo Fender passed away in March 1991. Shortly after, facing legal challenges over the use of the "Fender" name on G&L instruments, George Fullerton and Leo's wife, Phyllis Fender, decided to sell G&L to BBE Sound, Inc. in 1992.
George Fullerton remained a consultant, and Dale Hyatt handled sales. While quality remained high,the era was characterized by the immense challenge of continuing the company's momentum without Leo's constant flow of innovation and inspiration. While instruments from this period are still generally regarded as high quality, some reports indicate a slight downward trend in quality control as the company found its identity. The company also had supply chain issues and struggled to get their guitars into enough retailers to compete with larger brands.
Under BBE, G&L became more of a custom shop brand for a period, producing aesthetically unique guitars. BBE also introduced the more affordable, overseas-made Tribute Series in 2000, which still used USA-made pickups and hardware to keep the core G&L tone intact.
G&L Musical Instruments ceased operations in late fall 2025 following the financial dissolution of its parent company, BBE Sound, Inc. The closure culminated in reports from industry sources and court documents confirming that Fender Musical Instruments Corporation (FMIC) acquired G&L's intellectual property and assets during liquidation, thereby ending G&L's 45-year run as an independent manufacturer operating out of Leo Fender's original Fullerton factory. No tooling or inventory was acquired by Fender, only intellectual property.