As we hurtle headlong into the a new decade – the 2020s – it’s a good time to pause and take stock of some of the major events of our industry’s recent history by ranking the Top 10 Strata-gee stories of 2019 based on total page views. This ranking shows just what stories drew the most attention of Strata-gee’s eminently intelligent and inquisitive readers.
Integra
Onkyo to Slash Overall Company Headcount by 30%, Cutting Management by 50%
Also: Consolidating Facilities & Moving Headquarters
It appears that the other shoe is dropping in the wake of the failed acquisition of Onkyo Corporation’s branded A/V division by Sound United last month, as the company now says it will reduce its overhead by cutting jobs. This appears to be the first step in a major reorganization of the company, as it seeks to right-size the organization for the industry’s new, smaller, and more competitive environment in which electronics manufacturers find themselves.
See more on Onkyo’s restructuring…
[Read more…] about Onkyo to Slash Overall Company Headcount by 30%, Cutting Management by 50%With Loss of Two Potential Buyers, Onkyo’s Future is a Question Mark
As you most likely know by now, Onkyo Corp. and Sound United have called off their transaction which would have transferred ownership of the 73-year old Onkyo brand, as well as the Integra, Pioneer, and Pioneer Elite brands to Sound United. The shocking news capped off a nearly five month process where many in the industry tried to figure out just how this deal made sense.
This was the second loss of a potential buyer for Onkyo, which admits it is re-evaluating its future based on the failure to sell off its brands.
See why Onkyo’s future is a question mark…
[Read more…] about With Loss of Two Potential Buyers, Onkyo’s Future is a Question MarkCEDIA 2019: Onkyo USA Says It Will Become a Retailer of Sonos, a Distributor Too
Onkyo USA announced this week that it will become a retailer of Sonos wireless music systems – selling the company’s wireless music systems on Onkyo USA’s website. The company also says it will distribute the brand nationally as well.
See more on Onkyo’s partnership with Sonos…
[Read more…] about CEDIA 2019: Onkyo USA Says It Will Become a Retailer of Sonos, a Distributor TooSound United to Acquire Onkyo’s Audio Division
We seem to be in a week of big deals. First, we learned that SnapAV had acquired Control4, then we learned that the original founder of Paradigm has acquired back the Paradigm, Anthem, and Martin Logan brands from the private equity company that had bought the company from him some time back. Now we learn that Sound United, owner of Denon, Marantz, Polk Audio, Definitive Technology, HEOS, Classé, and Boston Acoustics has entered into an agreement with Onkyo Corp. to purchase Onkyo’s premier lineup of brands, including: Onkyo, Integra, Pioneer and Pioneer Elite.
But does Sound United’s purchase of Onkyo make sense?…
[Read more…] about Sound United to Acquire Onkyo’s Audio DivisionGibson Investment Gone, Onkyo Sells Off European Operations
In Restructuring, Company Scales Back to ‘Core Competencies’
All the way back in 2012, Onkyo Corp. and Gibson Guitar Corp. came together to partner in what both hoped would become an entity where the whole was greater than the sum of the parts. Just months after their announcement, Onkyo forged ties to another Japanese audio brand, Teac/Tascam – just as Gibson stepped in to buy a majority share of them…and the combined entity began to grow.
Little did they know that just six short years later, Gibson, the investor in Onkyo, would implode into bankruptcy – forced to extricate itself from its Onkyo aspirations. Onkyo was hit as well, losing its Gibson investment – forcing them to reassess their direction. We now learn that Onkyo has sold off its entire European operations to an accessory distributor known as Aqipa GmbH.
See more on this surprising announcement by Onkyo… [Read more…] about Gibson Investment Gone, Onkyo Sells Off European Operations
Docs Show Gibson Bankruptcy Bigger Than You Think
Founded in 1894, it is a mark of their long-term brand success that Gibson has become such a large and far-flung international organization. In a cursory review of documents submitted to the court as part of their bankruptcy filing shows, legendary performers such as Muddy Waters, BB King, Elvis Presley, Pete Townsend, Keith Richards, Duane Allman, Elvis Costello, Lenny Kravitz, Slash, Dave Grohl, Joe Bonamassa all used various Gibson products that, in some cases, became a signature of that performer. And yes, the bankruptcy filing promotes these iconic names.
But from these Gibson filings, we’ve learned so much more… [Read more…] about Docs Show Gibson Bankruptcy Bigger Than You Think
Options Narrowing as Gibson & KKR Talks Fail
We learned last week that talks between Gibson Brands and deal making king KKR Credit Advisors fell apart in a dispute over “the appropriate consideration for the various parties involved,” according to a statement from Gibson Brands. As yet another bail-out opportunity slips by them, Gibson Brands sees their options narrowing, with an August deadline on a required financial restructuring of more than $500 million of debt rapidly approaching.
See more on this dire situation at Gibson Brands… [Read more…] about Options Narrowing as Gibson & KKR Talks Fail
Gibson, After Light Pruning, Plans Global Layoffs
Hundreds of Employees Facing Pink Slips
Gibson Brands, a major provider of musical instrument and consumer electronics products, is in the midst of a widely reported liquidity crisis. With more than $500 million dollars in notes coming due late this summer, the company is seeking a knight in shining armor to ride in on a white horse with a big bag of money to refinance the company’s crushing debt.
To make the company appear attractive to a lender or investor, at the end of February the company sold off its shuttered Cakewalk division and laid off about 15 employees from its famous Custom Shop. Now we learn the company is planning more substantial layoffs across the board.
See more on this latest development at Gibson… [Read more…] about Gibson, After Light Pruning, Plans Global Layoffs
Gibson Sells One Division & Cuts Staff in Another
The news and events surrounding troubled guitar and consumer electronics company Gibson Brands, Inc. seem to be moving at a rapid pace with almost daily revelations as the company struggles to survive ahead of a massive debt due-date just a few short months away. We learned over the last few days that Gibson has sold their recently shuttered Cakewalk Inc. division and laid off staff in their famous Custom Shop operation.