Guernica was conceived by Ivo Watts-Russell in 1992 to mirror his original ideal at 4AD of releasing one-off projects. Guernica was named after Pablo Picasso's 1937 painting. Sleeve designs were deliberately outsourced to London design studio The Senate (3) to keep the label's identity separate from 4AD.
Unrest (2) released their follow-up on 4AD while Bettie Serveert moved on to release on Beggars Banquet and Underground Lovers continued to release in their home country Australia on Polydor. Spoonfed Hybrid released no further album. The label's last release, Insides' Clear Skin (1994) was the only time a band released a follow-up project on Guernica.
All vinyl albums issued on Guernica included a bonus 7'' with additional tracks. These vinyl albums and singles were not released separately.