BBC NEWS | Entertainment | Star-signed guitar lost in post
Brian May was among those who signed the guitar
The Fender Stratocaster was expected to fetch up to £20,000 for the Rainbows children's hospice in Loughborough.
But the guitar disappeared while in the care of courier Parcelforce on the way from Knopfler's London office.
Parcelforce have agreed to donate £15,000 to Rainbows. But organiser Dave Allen said he was "devastated".
It took nearly a year for Mr Allen, a music promoter, to collect the signatures.
"Everybody is very, very deflated," he said. "It was the first and only time we had let the guitar out of our hands."
Record sale
The guitar was on its way from London to Mr Allen in Market Harborough, Leicestershire.
Other names on the lost guitar include Bill Wyman, Brian May, Jimmy Page and Pete Townshend.
Parcelforce apologised for the loss and said it had spent the last month searching all of its depots and examining CCTV footage.
Last year, an autographed Stratocaster including signatures from Sir Paul McCartney and Sting sold for a record $2.6m (£1.3m).
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