The Kreider-Reisner Aircraft Company was formed at Hagerstown, Maryland in 1923 as a sub-contractor. By September 1925 the company was operating a general flying service and incorporated. In 1926 it designed and built the first aircraft the Midget lightplane. The aircraft performed well in aviation competitions so the company then designed a two-seat utility biplane. It had decided it was cheaper to design and build an aircraft for use in its own flying services and the resulting aircraft was the C-2 Challenger. A smaller version was designed and built in 1928 as the C-6 Challenger. On 1 April 1929 the company was bought by the Fairchild Aircraft Company who continued production at Hagerstown and redesignated the aircraft in a Fairchild KR series. Kreider remained president, but died on 13 April 1929 in a mid-air collision. Reisner left the company shortly afterward. By 1931, Fairchild had relocated its headquarters to the Hagerstown site.