According to Duchossoir, Lewis Williams was replaced as general manager, and a lack of amicable relations with the new manager—an accountant named Guy Hart—led to the termination of Loar's contract. After leaving Gibson, Loar created and patented an electric instrument with a coil pickup, and co-founded the Acousti-Lectric company with Lewis Williams in 1934. The company was renamed the Vivi-Tone company in 1936. Loar died in 1943.