If I had to point my finger at one person, it would be Jol. Late 90s-2000s, he had a habit of not building anything HE didn't like. That's not how to run a company. I *hear* from insiders that he shot down several large orders from dealers because he didn't like the specs or the models. Even worse? Some of those custom orders that were shot down would come back as NAMM guitars shortly down the road. That's a kick in the nuts.
He only wanted to build cork sniffing, high-zoot guitars that nobody could afford. Fender gave them a solid backing, to start with, and then when things still didn't go well after Jol left, THAT'S when they started building anything you could dream up, i.e., the 80's throwback stuff that they focused on in the last couple years' worth of blogs-after they went Custom Shop-only. They even had them building Hamers on the side with their main focus being Guild acoustics. FWIW, the same guys were building fantastic quality instruments. My 08 Vector was every bit as good as my 97, nearly identical, in fact. I'll bet anybody $100 that the last Hamer to roll off that line is as good as anything they ever built, if not better because it's the end of an era and they know it.
IMHO, they tried, but they couldn't come back from Jol's mismanagement.
They never could have competed with Gibson, anyway-too low production. They were truly hand-built by a small shop in CT.