“In the February issue, Stereophile tentatively predicted the imminent reopening of Krell Industries, the legendary high-end amplifier manufacturer. It didn’t happen, and it still hadn’t happened as the current issue went to press.
It now appears that two parties are competing to reopen Krell.
To recap: On June 18, 2024, Krell Industries closed following the unexpected death of owner and CEO Rondi D’Agostino. An early announcement indicated that the closing would be brief, but Krell has been in limbo ever since.
In an interview in late January, Wil Buhler of self-described “family holdings company” JF Bicking & Co. told Stereophile that the long-awaited reopening was within reach. Others disputed his claim, though not publicly.
What is JF Bicking’s relevance to l’affaire Krell? Bicking claims a 30% share in the company. “JF Bicking’s working relationship with Rondi [D’Agostino] gave her and us equal managerial control, even though she still held the majority share,” Buhler told Stereophile. Documents supplied by Bicking and reviewed by Stereophile appeared to support Buhler’s claim of an ownership stake.
Who owns the rest of Krell? “With the death of her husband in August of 2024, the [majority] share has now gone to her heir,” Buhler said. “Her heir” is Rondi’s son Kristofer D’Agostino. Also involved, perhaps as an adviser to Kristofer, is Steven Javaherian, Krell dealer and proprietor of Florida–based dealership High Performance Stereo. In November, Javaherian set up a Connecticut limited-liability corporation (LLC) called Krell Audio.
Javaherian and Kristofer have refused to talk with Stereophile. “We were ordered by the probate judge not to make any public statements at this time,” Kristofer wrote in an email. “Unlike the other parties involved, I’m obeying the judge’s orders to not speak on this issue until a ruling has been granted.”
Anonymous sources told Stereophile that at first, Kristopher was uninterested in being involved with Krell. Apparently that has changed. Now, two factions—majority owner Kristopher on one side, JF Bicking on the other—are competing to own and reopen the company.
“Within a day or so, we are planning to submit a formal offer to buy Rondi’s outstanding majority share of Krell from her heir. Our lawyers … are pretty confident that we will succeed.” Documents reviewed by Stereophilesuggest that the proposed deal is structured as a small upfront cash payment plus a declining share of profits, starting at 10%. JF Bicking would take on all Krell Industries debt.
“Ultimately, we think the courts will intervene,” Buhler continued. “We’re requesting the appointment of an independent third-party administrator to handle Rondi’s estate so that we can proceed with reopening Krell.” When contacted in early February, Buhler said the offer had been made but that no response had been received. A court hearing was scheduled for the week of February 3 but then rescheduled for February 19, well after this issue of Stereophile went to press.
Willie Barnett, Krell’s longtime repair technician, is still in the picture. In a Facebook post in mid-February, he wrote, “I am still working with Steven Javaherian to get the Repairs going again”; Earlier posts to the group, in late December, suggested that he was working with JF Bicking. He has made it clear all along that his interest is in getting Krell reopened.
When we spoke with Buhler in late January, he said, “Through all subsequent negotiations with [Kristofer D’Agostino], the invaluable help of former Krell Industries Vice-President Walter Schofield has enabled us to stick it out through less-than-cooperative behavior on the majority holder’s part. Once matters are settled, and we can start up again, Walter will come back onboard in a consulting capacity and help with the rebuilding of Krell.”
Contacted by Stereophile, Schofield remained neutral in the ownership dispute, saying, “I only ever wanted to see Krell reopen, have people’s equipment repaired and returned, and if possible, see the brand restart production. … At first, it seemed there was only one horse in this race. All I ever wanted to do was help, and I am still willing to do so for any entity that takes control of the brand.”
Stereophile’s hope, too, is that whichever side comes out on top, the dispute will soon be settled so that Krell Industries can reopen and restart its work processing repairs and fulfilling customer orders”.
I have a friend who has had an amplifier at Krell for repair for almost a year now. He has heard absolutely nothing from Krell, and has had no response(s) to his enquires sent to various people mentioned in the Stereophile article including the Krell Facebook group.
Great to hear that Walter is back if KRELL rises back up. I bought my 300i and 175XD after emailing him a few times. Sold both but wish I still had at least one of them.
@roxy54I agree "the hour is late." But I don't think it's too late. I really like the sound of the Krell XD stuff. I am hoping that the development of the flagship stereo and monoblock amp's tech will trickle down to new lower priced amplifiers to replace the XD series. Walter is back but let's also hope Dave Goodman will come back to do this designing. These are really wonderful relaxed, smooth, natural sounding amplifiers. The XD series is several years old now. New designs and products are just as important, in the future, as getting restarted is now.
Customers should have been given more information and communication prior to this, even though it's good news for customers who have been waiting for their gear to be repaired and returned. Too much, too little too late, I think. I don't believe their reputation will ever really recover from this.
please see below the ==== for a copy of the above referenced article.
@bulldogger,Thanks for finding and posting this article on Krell.
=====================================
"On June 18, 2024, Krell Industries closed temporarily after the unexpected death of owner and CEO Rondi D'Agostino; Krell has been in limbo ever since. According to Wil Buhler of family holdings company JF Bicking & Co, Krell's long-awaited reopening is within reach.
What’s been happening? Buhler offers an explanation. "JF Bicking's working relationship with Rondi gave her and us equal managerial control, even though she still held the majority share. With the death of her husband in August of 2024, that share has now gone to her heir.
"Through all subsequent negotiations with that heir, the invaluable help of former Krell Industries Vice-President Walter Schofield has enabled us to stick it out through less than cooperative behavior on the majority holder's part. Once matters are settled and we can start up again, Walter will come back onboard and help with the rebuilding and running of Krell.
"Within a day or so, we are planning to submit a formal offer to buy Rondi's outstanding majority share of Krell from her heir. Our lawyers, Royer, Cooper, Cohen and Braunfield (RCCB Law), are pretty confident that we will succeed.
"Once we've conferred with Walter, we will submit our formal offer to buy Krell. Ultimately, we think the courts will intervene. We're requesting the courts to appoint an independent third-party administrator to handle Rondi's estate so that we can proceed with reopening Krell. Our next hearing is next week, between February 3 and 7. That's when an independent administrator will be appointed if the heir has not yet accepted our formal offer for purchase."
Meanwhile, Buhler informs Stereophile readers, krell.industries is the legitimate website for Krell Industries. "The former website, krellhifi.com, has been hijacked," he says.
What about Krell equipment sent in for repair? Willie Barnett, Krell's longtime repair technician, continues to be affiliated with the company, active on the Krell Owners and Enthusiasts Facebook group, and hard at work. "All Krell equipment previously submitted for repair is safe and currently being fixed," Buhler assures Krell owners. "Product will be sent back to the owners once repairs are complete."
Stereophile has contacted Rondi’s heir and will update this story if and when comment is received. The announcement of the official reopening of Krell Industries will be shared on this site. Please stay tuned".
It seems to me that Wil's careful wording indicate that he is under tight legal restrictions that might be out of his control. A gag order of some type comes to mind as he is seems to tiptoe his way forward.
Gotta hit the one I highlighted or you get a site that looks like Arabic.
That was Thai.
Unfortunately, our old domain, krellhifi.com, and related emails have been hijacked, and are no longer under our control.
If Krell had paid the $25 domain renewal fee maybe it would still be under their control? Also, whoever owns the domain name now is probably more than happy to sell it back for a fee, since that's the business they're in - selling domain names. But, no; instead:
It simply boggles my mind that they haven't uttered a peep about the status of everyone's gear in for repair or that it's even a concern. As was stated previously, irreparable damage.
Thanks for your post and the info above. I found the link you referenced and posted its ’contents’ below for everyone to read. Please see below the ======.
============================================
Krell Industries: Preparations For Reopening
(UPDATED 1/9/2025)
To our valued dealers and distributors,
We are pleased to inform you that Krell Industries is now in the process of reopening. This is a very complex matter, involving relocation and a number of legal issues which are in progress. Due to the unpredictable nature of filing Court documents, etc, we cannot provide a timeline. We are working toward re-opening, and an official announcement will be made in Stereophile Magazine.
As part of our commitment to enhancing your experience, we are migrating our digital infrastructure to a cloud-based platform. Due to the significant complexity involved, this process will take some time.
Unfortunately, our old domain, krellhifi.com, and related emails have been hijacked, and are no longer under our control. Remedies are being pursued. For the time being, please use our new website: krell.industries (no additional TLD).
We’re excited to announce the upcoming launch of our new dealer portal, which will become an integral part of our sales and service process. Through this portal, you’ll be able to track purchase confirmations, shipping and delivery dates, service quotes, and more in real time. This portal is part of our broader initiative to modernize and digitize the purchasing and payment process, enhancing both ease and security for you, our valued dealers.
For now, please use the following emails for any inquiries:
Info@krell.industries
Sales@krell.industries
Service@krell.industries
Support@krell.industries
Dealers@krell.industries
Please note that responses may be delayed until we are fully operational, as we continue to operate under limited capacity. We also ask for your patience as we finalize testing of our new website, as there may be some technical or user experience issues. (This work is ongoing.)
We greatly appreciate your continued patience and understanding, and we’re working diligently to reopen and resume full operations as soon as possible. Your support is invaluable, and we look forward to working with you again soon.
If you go to their website, they have an update on opening that was updated on the 9th. About 3 — Your Site Title - krell.industries. Gotta hit the one I highlighted or you get a site that looks like Arabic. Update once again tells you absolutely nothing that hasn’t been said before, but allegedly it has new e-mail addresses for everything.
It is just flat out stupid and senseless business wise to have not specifically addressed this.
Maybe it's time for yall who've got gear held up hostage to start shaming Wm. Buelher on his personal social accounts. Get the grandkids and their friends to do it, whatever. Just sayin
Wouldn't it be funny to drive over there and a couple of guys are selling stuff out the back door. Just wacks of gear, parts even the tech bench tables
if Krell would release their service schematics to third party technicians, servicing Krell products would not be an issue.
Absolutely, one hundred percent. It is time Right to Repair laws are passed in all states to give folks back the control over how and where to have their gear maintained - gear they paid for and own. It is time rogue companies are put back in their place.
@willywonka I see your point, but that essentially makes you a Harman / Bose customer
This is one of the reasons I've started steering clear of these boutique audiophile companies that are one owner shows. Granted Krell had almost 50 employees compared to some companies that are 1-2 man operations. If the owner has a health issue or dies you are basically screwed.
I’m sorry, but this is not how to run a company. How many customers shipped components needing repair to Krell before the doors closed? And how long must someone sit in limbo while the legal process continues. I’d hate to be someone who’s sitting in limbo not even knowing if their item or items is even going to be found! How is it Krell owners didn’t have their affairs in order before this happened. This is what not to do if you own any company!
Yeah generally no mandate for private companies to have a Board of Directors, although it can vary by state as to what functions a company must have. In a situation like Krell has gone through, I'm not surprised Rondi did not constitute a Board. I think it is also mute reinforcement that Bicking or any other investor did NOT have a significant financial interest in Krell. Invariably, someone putting money into a business or someone with substantial ownership wants a Board and someone looking out for their financial interests.
Yeah generally no mandate for private companies to have a Board of Directors, although it can vary by state as to what functions a company must have. In a situation like Krell has gone through, I'm not surprised Rondi did not constitute a Board. I think it is also mute reinforcement that Bicking or any other investor did NOT have a significant financial interest in Krell. Invariably, someone putting money into a business or someone with substantial ownership wants a Board and someone looking out for their financial interests.
More than 6,113 Audiogon Members have viewed this ’Krell Moves to new location’ post and 91 people have made comments. While I found everyone’s comments interesting to read, none of them have REALLY answered the one question everyone is asking. What is going on at KRELL INDUSTRIES?
As of today, Krell Industries has NOT yet issued a comprehensive public release addressing its current situation to its customers, retailers, and vendors. While the company has shared limited updates through its new website and social media, many customers remain frustrated by the lack of direct communication. A press release with full details has NOT been released, leaving questions about their operational plans unanswered.
I also do not understand why Krell industries said they will communicate something to Stereophile but send nothing to their customers, retailers and vendors. They also sometimes post to Facebook. This makes zero business sense to me.
Some of these Audiogon posts say Krell Industries has closed and will not reopen. Other people are worried about getting their equipment repaired and/or returned. Some people have provided many details regarding various legal options. There are many other interesting comments.
Everyone wants to know when Krell Industries will send out an official press release with the full details. My answer is I have no clue!
AND, as stated above, "Will the real owner of Krell Industries, please stand up".
Lynn_olsen is largely correct but bankruptcy is a bit more complex depending upon the state and the type of bankruptcy. Most bankruptcies start out as a Chapter 11 meaning they will get some money from an outside source in exchange for basically full ownership of the company. Then Krell in this case would settle the claims of it’s the debt holders with some of the cash infused for ownership of the company with the remaining cash going into future operations of the company. Most states want to get back pay to employees but that is limited in amount, duration of pay owed and the size (cash) of the estate. As for taxes, I suspect Krell has produced losses for multiple years and has a sizable NOL (net operating loss) which is a shield against future taxes (largely at the federal and state level) and an asset of the estate. The other bankruptcy is called a chapter 7 proceeding which is basically a dissolution of the company under bankruptcy court procedures with the proceeds going to people the company owes money to which includes employees, vendors, secured debt holders ( generally a bank) and then to unsecured debtors. If there is sufficient cash after the bankruptcy action to pay off all the above, then the shareholders get the remaining cash. This whole process is somewhat more complex than that, but this is a quick overview of the rank order of payouts. I’m sure you’ve heard the phrase “Pennies on the dollar”. That is a reference to the fact that in most bankruptcies, most entities owed money get less than what they are owed and hence Pennies on the dollar.
A large percentage of companies that attempt a Chapter 11 actually wind up as Chapter 7’s in less than a year or so. As for those of us with equipment at Krell, it should not be considered part of the estate. We never transferred title to our assets and Krell is simply “holding” our amps, preamps, etc. However, getting them sent back to us will be a chore since cash will be at a premium and there likely is nobody there to send our equipment back to us other than a court appointed trustee who wants to get this off his or her plate as quickly as possible. Sending back 60 pound amps to Oregon or Mississippi will not be high on their to-do list.
This rather negative overview assumes Krell is going into bankruptcy - an event for which we have no actual knowledge. This was merely a response to Lynn_olsen response about payment priorities under a liquidation scenario. The other caveat here is that I am not an attorney but do have experience working with clients through the bankruptcy process.
Srace1 can probably chime in here, but if memory serves, the order of payoff when a company is dissolved is:
1. Back pay for former employees. This is a matter of state, not Federal, law, and state attorneys pursue this matter on behalf of the employees. Some states (like California) are quite aggressive on behalf of former employees, others aren’t.
2. Federal, then state, then local taxes, in that order. Pursued by the IRS and state attorneys.
3. Banks, then other stakeholders, including customers with equipment in for repair. Owners of equipment in for repair might pursue a class action lawsuit; this is easy in some states, and quite difficult in others. Depends on state law. And yes, the reason class action lawsuits are rare is that lawsuits are often (much) more expensive than any potential gain. It’s the duty of an ethical lawyer to warn their clients of the potential costs of a lawsuit.
4. Bond and stock holders are paid last. The value is usually zero at this point.
Jea48 I didn’t wanna make the communication on this form very personal since I didn’t want to come off as any sort of know at all. However, perhaps some of my work background will be appropriate and give some perspective on why I have made the comments i have. I ran a number of large consumer products companies earlier in my career. I tired of that and then did turnarounds for private equity and venture capital portfolio companies for over a decade. Subsequent to that I started a hedge fund focused on small ( under $1B market cap) public companies in some stage of turnaround. I took a number of client companies through bankruptcy. I have a pretty good idea of the situation if not the specifics facing Krell and Buhler.
As I have outlined, there is much to be desired with the communication from Bicking. I realize Krell and Bicking are both private companies and won’t have the disclosure mandates of public companies.. What I am about to write is based on some level of conviction of the situation at Krell despite a lack of knowledge of the facts. I have researched Bicking and there is no indication that they hold an equity position in Krell or any other company. They are strictly an advisory firm and as such they are likely trying to turnaround Krell. It is unclear who hired them or for that matter who they report to. I agree it is curious that Buhler used terms like “we” or “our firm” when referencing Krell but you need to understand I suspect he is the management of the company at this point probably largely through default. Again a suspicion on my part, but this has been going on so long that personnel has dispersed and he is of the last men standing at the company. While perhaps a bit sloppy, Buhler’s note to this forum was casual and not official so the terms he used are understandable. Nevertheless he has missed some self imposed deadlines for communication on the situation. Also while not mandated, in a situation of a consumer products company communication with “stakeholders” becomes paramount in preserving brand equity.
While I am not at the point of suggesting Krell is a failed company it certainly would meet my definition of being in the “zone of insolvency”. I am not a lawyer either, but I have worked clients through the bankruptcy courts, and when a company finds itself in that situation the people running the company need to take care of the debtors first and the equity holders second. Basically they need to run the company so that debtors get their money or in my case my property back. Frankly anyone who has equipment in at Krell for repair, warranty or upgrade is supposed to get their equipment back since it isn’t part of the Krell estate.
I don’t want to speculate on outcomes but even if Bicking is an equity holder in the company at this point I SUSPECT their focus to shift from protecting the equity holders interests to protecting the debtors interests. I agree this whole situation is odd and it appears Buhler has had a relationship with Krell for sometime. Given the financial trials and tribulations I am not surprised Bicking has had a relationship with the company for sometime. However based on what I have seen and on some likely assumptions, the nature of their advisory services has probably changed over time. Unfortunately not much we can do other than rely on the better Angels doing the turnaround.
Reading this thread is sad for me. There have been so many missed opportunities to support brand goodwill by simple communications.
Can such destruction of value be deliberate? For the experienced legal minds among us, I ask Which parties benefit from having a lower valuation for Krell assets? If the value of Krell goes to zero, who avoids inheritance tax or . . . ?
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