Audio Research in Receivership.

Cables are discounted now since China makes counterfeits of most all cables the used market is dead since most think cables are counterfeits. Ive tried to sell used costly cables all you get is accusations that they are fakes. And the audio market is cyclic we had massive demand and sales during COVID it makes sense after all that buying things would greatly slow down. And AR has been making junk of late why they are dying.

@jetter.  While it is expected that ‘sophisticated’ financial analysis was done before purchasing ARC, I very seriously doubt that this did much if anything to the continuation of a successful business. How many times have we seen folk pay multi millions for businesses that fundamentally were worth ‘peanuts’, and had extensive and sophisticated’ financial analysis done prior to acquisition? Makes me laugh…

This is a receivership, not bankruptcy.   And what it really means in a nutshell is that the creditors with secured loans are not very happy (most likely delinquent payments) and the actual management of ARC will now be taken over by the Receiver.   It would make no sense for the receiver to liquidate ARC's critical infrastructure unless things are totally desperate.  Remember, receivership is an action taken by the creditors, not ARC.  If ARC needs to protect themselves from the creditors, then they would be filing Chapter 11.  Which is really a whole different (although often interrelated) thing.....

If I recall correctly, W Z Johnson had a difficult time getting the right price to surrender his interest in the company and that initial buyout put ARC in an upside down position from that date forward. A great company---I have an all ARC system and respect the badge immensely--- I hope that a well financed savior who understands the audio market can take them out of the hole and deliver them up to where they deserve to be.

co93

... receivership is an action taken by the creditors, not ARC ...

That is mistaken. In fact, based on the court filings, it may have been a surprise to the bank that this filing was made. (Although, given Suggs' delinquency, it shouldn't have been a total surprise.) The bank’s filings suggest its claim is with Suggs and his private company, not ARC.