The original Danelectro company was founded by Nathan "Nat" Daniel in 1947. Throughout the late 1940s, the company produced amplifiers for Sears, Roebuck and Company and Montgomery Ward. In 1954, Danelectro started producing the Danelectro lines of solidbody electric guitars and amplifiers. The company also made guitars and amplifiers under contract that were branded with the names of various store brands, such as Silvertone (Sears) and Airline (Montgomery Ward).
Later, Danelectro manufactured hollow-bodied guitars, which they constructed out of Masonite and plywood to save costs and increase production speed. These were distinguished by Silvertone's maroon vinyl covering, and Danelectro's light tweed covering. They used concentric stacked tone/volume knobs on the two-pickup models of both series—and "lipstick-tube" pickups, which contained the pickup components inside lipstick tubes, which have been said to be "war surplus" but which, in fact, Daniel ordered and bought directly from the manufacturer.
Danelectro's goal was to produce no-frills guitars of reasonably good tone at low cost. In 1956, Danelectro introduced the six-string baritone guitar. The baritone guitar never became especially popular, but found an enduring niche in Nashville for "tic-tac" bass lines.
In 1969, Danelectro closed down, due to MCA's attempt to market Danelectros to small guitar shops rather than large department stores.
In the late 1990s, an importer called the Evets Corporation purchased the name and began selling imported copies of old Silvertone and Danelectro guitars, and newly designed effects pedals and small amplifiers.[vg 3] After initially selling well, guitar sales slowed and Danelectro stopped selling guitars after 2001 (2004 on official site)[which?] to concentrate on effects pedals. In 2006 (2005 on official site),[which?] new owners of Evets decided on a new marketing model for guitars, selling a limited number each year.[vg 4]