It seems that the grille cloth that Fender started using in 1981 for the return to Blackface cosmetics does not hold up as well as earlier cloth. It weakens and disintegrates more readily than the earlier cloth…even with the faintest of contact.
Of course, the amp above has had more than light contact. Kudos to Fender for building a solidly built PCB amp.….chassis mounted controls, jacks, switches, and tube sockets. I would have glued the loose tolex down and re-grilled it, made sure the circuit was working, maybe make some light modifications to the Normal channel, and let it play on!!
Cool!! If I remember correctly, Fat Matt's had their menu painted on a board behind the counter, at the bottom was a reminder or maybe an admonishment, "If it ain't on this board, we ain't got it. Don't ask". Great ribs!!