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Body and headstock shapes were made more "vintage correct." Hollowbodies resumed construction from three-ply wood laminate rather than the five-ply of the 1990–2002 period.Duo Jets were chambered in accordance with vintage practice.In late 2002, Gretsch and the Fender Musical Instruments Corporation reached an agreement giving Fender control over marketing, production, and distribution of guitars, with the Gretsch family retaining ownership of the company.Fender instituted a program intended to restore production practices of the era of Gretsch's greatest popularity.These were actually manufactured by Valco, and have become sought-after in the years following Valco's demise.During the "Baldwin era", new models were introduced throughout the 1970s and old favorites continued to be produced.Gretsch guitars achieved some popularity among New Wave and alternative rock guitarists in the 1980s.
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.The cover art of George Harrison's eleventh studio album, Cloud Nine (1987), features Harrison's first American-made guitar, a 1957 Gretsch 6128 Duo-Jet that he purchased in Liverpool in 1961. Gretsch released the G6128T-GH George Harrison Signature Duo Jet guitar, modeled on the instrument Harrison's "first real decent guitar." Gretsch also made a run of 60 limited-edition replica G6128T-GH George Harrison Tribute Custom Shop Duo Jet guitars, exact down to reproducing the original's scuffs and scratches; Harrison's son Dhani remarked, "I've never seen a more precise and detailed replica of any guitar in my life." Australia'a own guitar legend Chris Cheney of The Living End also has a signature White Falcon produced and named in his honour, bringing the Gretsch name and sound to an entire new generation.As solid-body 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. At that time, drum production was relocated to Ridgeland, South Carolina, where it remains today.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. The first new guitar model introduced was the Traveling Wilburys model - an Asian import - which looked much like a Danelectro.