Michael Ciravolo never really liked competitor designs, so he sought to distance the company from its past Fender-style models. These included Robert DeLeo of Stone Temple Pilots, and Jay Noel Yuenger and Sean Yseult of White Zombie, as well as Xavier Rhone of Carbon Nation. Michael Ciravolo, an experienced musician, brought to the company many well-known musicians as endorsees. In 1996, Hisatake Shibuya asked Michael Ciravolo to become Schecter's president and run the company. In 1995, Schecter introduced the highly sought-after 'S Series' guitars and basses. Sunset Custom Guitars happened to be the place where Michael Ciravolo, the future president of Schecter Guitar Research, worked. Schecter guitars were once again only available from a few retailers, one of them being Sunset Custom Guitars located in Hollywood, which Hisatake Shibuya also owned. Shibuya moved the company back to California and returned Schecter to its custom shop roots, devoting all its efforts to manufacturing high-end, expensive custom instruments. In 1987, the Texas investors sold the company to Hisatake Shibuya, a Japanese entrepreneur who also owns the Musicians Institute in Hollywood. Hisatake Shibuya and reform, 1987 вЂ“ present Schecter built several custom guitars for Yngwie Malmsteen that featured scalloped necks and reverse headstocks. During this period, Schecter managed to sign one notable endorsee, Swedish guitarist Yngwie Malmsteen. The name was purchased by the current owners in late 1987.

It appears this lawsuit may have essentially led to their closing in late 1986 to early 1987. Schecter was still using S and T headstocks, which Fender had allowed when they were a parts company. All guitars have the 'Lawsuit' peg heads (two small marks on back of headstocks). Eventually, the T-style guitar became known as the 'Saturn', and the company's S-style guitar became known as the 'Mercury'. Although Townshend never endorsed this model, it was known unofficially as the 'Pete Townshend model'. The most popular of these guitars was a T-style guitar similar to those that Pete Townshend played. At the 1984 winter NAMM show, Schecter introduced twelve new guitars and basses. The investors moved the company to Dallas, Texas, where they produced above-par quality guitars using both imported parts and Schecter parts under the Schecter name for less than five years. That year, the company was purchased by a group of Texas investors who wanted to build upon Schecter's reputation for quality. Texan ownership and mass production, 1983вЂ“1987Д«y 1983, Schecter had reached its custom shop production limit and could no longer meet demand. They were considered very high quality and very expensive, and were sold only by twenty retailers across the United States.Schecter guitars and parts have been used by, among others, Pete Townshend, Mark Knopfler, Ritchie Blackmore, Chris Poland, Synyster Gates, Richard Patrick, Jinxx, Jake Pitts Tommy Victor, Dan Donegan, Robin Zander, and Shaun Morgan. In 1979, Schecter offered, for the first time, its own fully assembled electric guitars. By the late 1970s Schecter offered more than 400 guitar parts, but did not offer any finished instruments. Eventually, Schecter began supplying parts to notable guitar manufacturers and to Robert Talbot repair shops.

The shop manufactured replacement guitar necks and bodies, complete pickup assemblies, bridges, pickguards, tuners, knobs, potentiometers, and miscellaneous other guitar parts. In 1976, David Schecter opened Schecter Guitar Research, a repair shop in Van Nuys, California.

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