“In ’84 that was it. We were done. I was completely bankrupt. It was devastating”: How Mike Matthews saved pedal pioneers Electro-Harmonix from the brink – and managed to secure its longterm future

Mike Matthews from Electro-Harmonix posing with a cigar in front of stacks of pedals in boxes.

Guitarist–meets-businessman-meets-pedal-wizard Mike Matthews’ company Electro-Harmonix is, undisputedly, one of the earliest pioneers of guitar pedals – converting the likes of Jimi Hendrix, Carlos Santana, and Jimmy Page – into loyal fans. However, the company has faced its fair share of hardships and pivots to survive – and thrive – in 2026.

The ’70s were a particularly fruitful period for the company. After starting with just $1,000, a scrappy attitude, and a knack for innovation in 1968, EHX was grossing $5 million annually by 1978 and had offices in New York, Toronto, London, and Tokyo.