Master violin maker Karl Höfner founded his own stringed and fretted instrument company in Schönbach, Germany in 1887. With a reputation for quality, craftsmanship and innovation, Höfner soon became the largest manufacturer of stringed and fretted instruments in Germany. Thus, in 1907 Karl Höfner was entrusted with the repair of the violin of the Saxon King, and the master performed his job to the full satisfaction of his client.
 
When his two sons, Josef and Walter, joined their father's company in 1919 and 1921 respectively, acoustic guitars already represented a significant part of Höfner’s instrument production. In a market dominated by inexpensive student guitars during the 1920s and 1930s, Höfner guitars were already establishing new standards and the company capitalized on that leadership during the decades that followed.