Seems that private equity has not hurt McIntosh Group at all:
McIntosh Group has been acquired by Highlander Partners, a Dallas-based private investment firm that manages over $2 billion in assets.
Audio Research filing for bankruptcy?
I just heard Audio Research might be filing for bankruptcy. This is a shock to me. I just called them a few days ago to have my Ref 6 upgraded to a Ref 6SE. I will also be the new owner of the Ref 750s. I was just wondering if they did go bankrupt what would all those millions of owners do about servicing their equipment. Should I be concerned? I’m alittle worried now.
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Same here. I wish ARC and all who work there the best. I'd feel that way if I didn't own ARC gear. |
@cleeds thanks for the updates, correction, and details. It will be interesting to see if there is a way for some entity to step up and help carry this forward and not let ARC products get lost. My only interest here is simply seeing American made home audio room products survive and stick around a while longer vs the new-era of iPhones and headphones. The next gen needs to experience this like we did. Hope they can. |
The filings suggest that the major creditor has waived claims against ARC and that its claims are confined to Trent Suggs and a private company (not ARC) that he owns. |
That’s not possible. The matter is before Minnesota Judicial Branch/Hennepin County and any transaction will require court approval. That will be contingent, in part, on creditors not objecting. There have been extensive filings in this matter (all online, you can read them for yourself) and there’s no reference anywhere to any source of financing yet. That’s the problem. Perhaps Mac has an interest in joining up with ARC again. But there’s no way it’s a done deal. |
@jbl-4345 I heard mcintosh bought audio research
Let's hope this is true. Would give Mc an upper hand owning both, new options, when you see posts of Mc vs. ARC dating way way back, c/b great for their fans and consumers. Please sure more if you find out more, if you can. I just read some notes where ARC was looking for someone to invest capital to keep them afloat and out of default with the local MN bank. Deadline was not met, apparently. Hopefully people generally understand its been weird times coming in/out of the pandemic, some parts supply has been limited, trying to get back on their feet. Maybe they could put some lines on hold, while keeping others afloat until there is some path forward. Will keep an eye out, keeping fingers crossed for them. ARC has always been a staple platform for many of many of my audio friends.
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Same diff. The days are numbered for all these companies unless the old timers are made immortal. Companies like B&O and B&W might survive a little longer because they are at least attempting to adapt. |
Welcome to the future of the hi-end market. Mac has only survived this long because it has exponentially greater brand recognition, has licensed their name to auto manufacturers, and has been publicly endorsed by the likes of Tom Cruise and Fallon. But I am betting that Mac’s days/years are numbered. The customer base of these hi-end brands was dwindling prior to the latest recession and that will now accelerate. I don’t think it’s a coincidence that the largest Pass Labs dealership in the country recently shut down. Just one example of the challenges facing these companies is the fact that there are $599 Chi-Fi preamps that can go toe-to-toe with the best SS preamps from these hi-end brands. I think all the current esoteric/hi-end brands are facing these threats. I am doubtful ARC’s issue is mostly due to mismanagement. It appears they continue to have competent and loyal employees. Though I am pessimistic about the the company’s future, I wish them the best.
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Will ARC warranties be discharged in a Chapter 11 Bankruptcy? If so, my thought that buying super well made Chi-Fi products only came with the risk that warranties wouldn't be honored could apply to ARC or other American blue bloods. Oh my. I'm not suggesting this is happening with certainty. But if it does, it will certainly make me think twice about purchasing 5-figure products.
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@elrod I know exactly what u mean. My first ARC was a used Ref 5se. Loved it a lot until I heard the Ref 6 in my system. I loved it and sold the 5 Se and bought the 6 brand new. Now I’m gonna up grade it to the 6SE. As I heard a lot of better things with it. I will be upgrading it sound unheard though. |
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@roxy54 I'm not sure ARC prices have moved ahead by much more than inflation. I recall the SP10 was $4,000 when launched around 1980. The Ref 6 is currently around $17,000. $100 in 1980 is $360 now, so the Ref 6 ought to be $14,400, so not much less than its current $17,000 price. Most people would say the Ref 6 is a better amp, but I can listen to my SP10 and there is much less difference than you might think. I have to listen on my second system as my main system is balanced from stylus to power output. The SP10 is definitely warmer, but then some who favour tube amps also favour 'warmth'. |
Hopefully they won't be purchased by a private equity firm as wee all know what happens then, and as @clearthinker mentioned. I still can't help wondering if the problem isn't a shrinking market and inflating prices. Fifty years ago when I was first getting into audio, Audio Research gear was out of my price range, and if new, it still is, but the price differential between now and then is just way beyond average inflation rates for most (not all} consumer goods. At the same time, there is an ageing and shrinking customer base, as well as an infinite and tempting variety of domestic and imported brands in the Audio Research price range. It's not hard to see why there would be a problem, even if the company was being well managed. |
Dealers were notified last week. Most companies fail because of sales. How many units do you think they were selling? The high end market as we know it is almost completely gone. Counterpoint sold 10,000 units and failed. Look at the prices of some equipment compared to upgrading those units. Much better to upgrade then to buy new. That's why we do repairs and upgrades. The values may drop but the units can be repaired. Another company may buy them but there is no guarantee they will continue on especially with passion.
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One can only hope that ARC failed financially due to upper level addiction or embezzlement issues & not due to a business model that no longer works in our crazy times & is truly unfixable. They make some beautifully sounding, high quality equipment & I hate to see any independent US company go down |
True, ARC is an attractive asset and the receiver is there to sell it. It will get sold. But don't be so confident. The real issue is who buys it. These days many buyers of such assets are only in it for a quick buck. They don't pay their own money, load the company down with debt, pull out the maximum management fees whether the company is making money or not, if anything's left over then it's dividends. It makes no difference to them if the company survives, let alone prospers. They just bleed it dry either way. A few years later they spit out the pieces and move on to their next victim. It's called private equity. And it's evil and destroying good businesses. Over here in the UK, they bought the water and sewage companies. Instead of spending money repairing and improving the plant, they ripped it out and put it in their pockets. The result is record levels of raw sewage in our rivers. Nice. Not. I have a few ARC pieces. Fortunately they are so well made I rarely get service issues. |
....Tanks alot, @p05129 ....and the Very Special Specialties of/by/for those Special People who own them.... *wry L* ...become art objects that may or not actually work. ;) "Trouble in River City!" If that goes down, there's a tush-load of other companies that domino in-line as well....🤨 Will the smarter ones in da loop be able to 'keep it local'....instead of a 'bigger affair'? Ever consider living out of town? I mean, Way Out of town.....😏 Nanook of the North out of town............. |
‘I’d assumed given Audio Reseach’s pedigree and long standing high end tenure they’d be on very solid ground financially.’ How many people do you think buy ARC equipment? ARC builds great equipment that 99.9999% of the world doesn’t know about nor cares. Even if you take a poll on this website I think you will get a small % of ownership. That’s not a negative thing but the facts in this hobby. Specialty/low volume stores are going to struggle in this economy and the high interest rates for funding new projects is becoming more expensive. When the economy tanks later this year you will see more companies have problems. |
I own all Audio Research equipment. I am very disappointed that Trent has not been successful in managing the company. He has certainly been a great customer advocate. I have no doubt that the company will survive. Their products are second to none. Trent has responded to my needs and concerns. I am ecstatic owning all Audio Research equipment and will continue to. If I had just purchased a piece of equipment I would be happy that I did. I purchased my first Audio Research component in 1979. It performed flawlessly until 2020 when I replaced it with a newer version…a friend of mine uses the original. |
@charles1dad already posted that@jomonhifi . |
Audio Research voluntarily agreed to assign its assets to a receiver, Lighthouse Management Group, Inc, on April 4th. We want you to understand what that means and how it affects our daily operations.
Audio Research has been operating since the assignment was filed almost four weeks ago, ten days before the AXPONA show where our VP of Sales (Allan Haggar) worked with our dealer Quintessence Audio, which featured a statement system including Ref 10, Ref Phono10, and Ref 160M MkII amps.
Little has changed outwardly. Audio Research remains staffed with Greg and Evan answering questions and assisting owners via email and on the phone; the service department continues repairing products; production is building new products and performing updates; our parts inventory has been good and we continue to receive parts shipments; our sales department continues to accept product orders, and our shipping department continues shipping parts and product orders along with completed service units.
Dave Gordon gave our Philippine distributor a tour of the facilities on April 26, where he and his wife were able to meet everyone, see everything going on, and listen to music in the sound room. The tour had been scheduled in March and did not need to be cancelled or postponed.
Trent Suggs was relieved of control of Audio Research and we have been working with individuals to purchase the company: we expect to have a new owner very soon. There will be continuity as production, engineering, purchasing, service, and critical personnel will remain working for Audio Research. Including Warren Gehl.
We just turned 53 in April and we look forward to continuing to provide the finest high performance audio products, service and support to our loyal customers, dealers and distributors.
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Just posted on WBF. “Hello, everyone. This is my first post on What's Best because I want you to know what is happening at Audio Research. Some of you know me since I was hire by Bill Johnson at Audio Research in 1989. I left for a few years and returned to ARC in 1996. |
Sad news. They set the benchmark in the States with the SP-3 preamp. I owned a fair amount of their gear back in the day, stopping at the SP-10mkii preamp and a succession of their amps. W Z Johnson was a force in the industry- hard to get the line as a dealer- They went through a number of different periods- from classic but very open sounding tubes to what I called their "white period" where the sound was drier, bleached, to the later Reference line which was very good. I stopped dealing with them in the '90s not for any reason other than that I changed directions. I still have my original Dual 75a that I bought new in 1975, awaiting a recap and retube (I have all the power tubes I bought from ARC 15 years ago). Still have some of the old literature showing prices with Magnepan- that was a big deal system back in the day- ARC electronics with the big Tympani panels. I hope for the sake of their customers and the legacy of the brand that this gets turned around. |
@charles1dad...thanks for that link! Did you guys see ALL the creditors that are listed? My Lord... |
Wise counsel from you and @onhwy61 Charles |