Iconic Guitars will lay off some of its staff as part of a new structural “reorganisation”. It alleges one of the key factors behind the move as BC Rich‘s neglect of a purchase order of 400 Stranger Things Warlock guitars.

• READ MORE: “This has been the hardest decision I’ve ever made in my life”: Guitarist Tommy Johansson leaves Sabaton

In a video posted to YouTube on Friday (19 January), Iconic Guitars founder Kevin Proctor explains the reason behind the sudden layoffs and restructuring which has resulted in ceasing operations in its Carlsbad, California facility and the firing of all staff there.

“We’re a very tight-knit group of people here… Yesterday was probably one of the most difficult days I’ve ever had emotionally,” Proctor states in the video.

You can watch the full video below:

One of the core reasons for the move, he explains, is the alleged failure of BC Rich to complete a purchase order.

BC Rich made Iconic Guitars the OEM (original equipment manufacturer) of the limited-edition Stranger Things Warlock guitar – which main character Eddie Munson plays Master of Puppets on in the Season 4 finale. According to Proctor, BC Rich commissioned Iconic to produce a 400-guitar run. However, due to lack of demand, 200 got cancelled despite preparations already being made.

“We never finished the Stranger Things [Warlocks]”, Proctor says. “[BC Rich] just stopped the purchase order and so we’ve still got cases and guitars, and I get it you’ve got to pivot on the demand thing… but I’ve got inventory that is unallocated because the purchase order has essentially been neglected and ditched.”

“The company BC Rich [has] defaulted on [its] agreement with us,” he continues.

“I utilised a lot of my personal relationships with suppliers to get things moving based on a forecast of what we were going to do that I’ve since had to cancel, thus tarnishing my name reputation.”

Guitar.com has reached out to BC Rich for comment.