MBL Insolvent


I apologize if someone else has started a thread I missed, but reports indicate that MBL has initiated insolvency proceedings under German law. Not all businesses succeed- its a feature not a bug in a free enterprise system- but hopefully new investors will come in and save the company. This seems to be following the way of Audio Research (fortunately saved) and others-lots of uncertainty surrounding Dartzeel, Krell, etc, which is unfortunate. So many of these manufacturers are small businesses, obviously without huge capital reserves and sometimes without a good succession plan when the founders move on. I hope MBL successfully restructures, it makes great products. I think we all benefit from a healthy, vibrant group at the top end that has the resources to create and innovate. Good luck MBL.

kerrybh

Yes, it is very sad. But hopefully they will work their way out of it. Glad to hear in the mean time it is business as usual. 

An example of how these audio companies are small businesses run by folks that are passionate about audio and are not getting rich by their greed. Sonus Faber seems to have about 65 employees, MBL 50 employees and Audio Research about 50, Boulder around 20... Ayre is also small. These are small companies making small profits and one small misstep and they can easily go out of business. 

There are many audio companies competing for the funds of the wealthy or more-than-wealthy. It isn’t surprising that not all can survive, especially at this time of economic uncertainty.

That’s unique and valuable speaker technology.  I’m confident it will survive somehow. 

@ghdprentice I agree. Not  muchbroom for error in a low volume business with significant capital costs and  a competitive environment to boost. It seems to me that these are the businesses the innovate and take risks And we need them to succeed. Sooner or later, it benefits everyone who is interested in this stuff . 

“These are small companies making small profits”

@ghdprentice 

That may be true, but what seems to hurt many of these high-end audio companies in the long run is affordability. As prices continue to climb, they risk alienating a broader base of music lovers who simply can’t justify or access this level of investment, no matter how passionate they are.

Yes, quality costs money, and I respect the craftsmanship and engineering involved. But if the entry point keeps moving further out of reach, the future customer base gets smaller and that’s not a sustainable model for long-term growth. Their entry-level floorstander, the 116f is priced at $40K. Let’s be honest — how many here can realistically afford a $40,000 pair of speakers?

I understand the impact of distribution costs and dealer margins, but the speaker category in particular has gotten out of hand in terms of affordability. It’s starting to feel like high-end audio is drifting further from real-world accessibility, and that’s worth questioning.

All of the brands you’ve mentioned, have one thing common….small businesses driven by passion. I hope MBL survives cause I really like their speakers, they are unquestionably iconic, unconventional and produce gorgeous sound. 

A sad fact is that the 2 channel high end audiophile is aging out and dying off. The successor generation has little use for high end gear. 
 

Another observation is that the people and or companies that make high end gear are not getting rich off their expensive products. Neither are the dealers. 
 

As the saying goes: “ sell to the classes and eat with the masses. Sell to the masses and eat with the classes”.  

there’s a lot of competition in what is a very small slice of the market. I don’t think high end will go away, but I definitely think it will change. Over the next 5 to 10 years. I think we will see a very significant migration to all-in-one solutions like the focal diva. The technology will improve and younger folks are going to be less interested in eight boxes and a rats nest of cables. 

@kerrybh 

Not to get off topic but I have noticed two interesting products in your amazing system….Schnerzinger EMI & Grid Protector’s. Do you find them indispensable in your system? More specifically, if one has dedicated circuit to audio room, would you still recommend Schnerzinger Grid Protector? 

Companies like MBL make products that only the 1% can buy. I wouldn't shed a tear for them!

@lalitk Thank you. I don't think these products are indispensable, I do think they make a subtle but discernible improvement-a bit more clarity and presence. When I've removed them, its not as good but certainly not night and day. The better power you have, I suspect the less advantage derived from the grid protector. The dealer taking me through this (last I suspect) significant upgrade cycle wanted me to try them and others who I know that use them are big fans. I think my dealer is excellent, and I hear a positive difference with these in my system

I'm a bit of a cynic about some of this-I couldn't hear a difference with audiophile switches for example, not to say that others don't-not for me to judge, but I hear a difference with these. If someone says its a placebo, well, I'd say maybe so, that's a real thing, No reason to be dogmatic. I just know my experience.

Most improvements I've made produce incremental, not night and day gains to my ears. The exceptions are moving up in speakers-always rendered substantial gains-mechanical devices with moving parts. The other is room treatments which change the way actual sound waves interact with physical structures. For me-only speaking for me-improving electronics produces positive results but not on the same scale. We all hear differently.

I had an interest in the speakers for a while but they look too weird.  Every time people come to my home they would seem to provide a distraction and I don't wanna break out into conversation every time someone steps into the room about the speaker.  That was kind of annoying to deal with the speaker if I did buy it.

Speakers kind of weird maybe that's why they're not doing very well despite how good they might sound. 

As long as companies like MBL and Audio Research ignore the consumer market, their demise (or acquisition by companies that do NOT ignore the consumer segment) is certain. 

There is a massive audience for great music. The diversity offered by streaming services is proof. Ignoring every customer with less than a 7 figure+ nest egg and under-retirement age is a death sentence. Some will turn up their noses at manufacturers that dilute their aura with affordable products.  Letting passion dictate your entire business model may be admirable, but not very wise. 

@jasonbourne71 You have a point, these are discretionary products that we can all live without. Of course there are folks who are content to listen to music on a $50 bluetooth speaker who would say people who buy a $200 set of bookshelf speakers are just showing off-its all relative.

Creative destruction is part of the system, but I hate to see businesses like this go away (hopefully a white knight appears) because employees suffer, dealers suffer, and we lose the benefit of an innovator. I know I have benefitted from trickle down technology from products I wouldn't spend the money to buy. I've heard the big MBL extremes a couple of times in 7 figure rigs. I thought the technology and sound was amazing. No way 'll ever own anything like that, so be it. I think this hobby is about deploying the resources we are willing and able to put into it in the way that brings us the most joy-that's different for each of us. The way I look at it is if I have a negative emotional reaction to someone who chooses to spend their money to buy an ultra system, well that likely says more about me than them. 

It is, in many ways, a strange hobby, and the rest of the world, if they think about it at all, think we are all nuts. 

Would love to see some “trickle down” of mbl technology to smaller and more affordable products designed to work better in most people’s rooms. 

@kerrybh
Thanks for your grounded take, I appreciate that and it really resonates with me. I think you’re spot-on in acknowledging that improvements in audio are often incremental, and that the most dramatic changes usually come from mechanical or acoustic factors like speakers and room treatments. I’ve had a similar experience, power-related tweaks and cables sometimes bring a welcome refinement, but rarely the kind of leap you get when one takes time to optimize speaker placement or carefully navigate through acoustic treatments. 

I also appreciate your openness about the placebo effect. There’s a lot of ego in this hobby, and it’s refreshing to see someone say, may be it is placebo and that’s A-ok in my opinion. At the end of the day, if it improves your enjoyment, that’s all that really matters.

We really do all hear differently, and approaching the hobby with curiosity rather than dogma makes the experience richer for everyone, IMHO. 

PS: I have added Schnerzinger EMI Protector to my wish list to try someday! 

"It is, in many ways, a strange hobby, and the rest of the world, if they think about it at all, think we are all nuts"

Goes without  saying. 

I've always been impressed/captivated by the MBL demos.

Maybe a Euro equity group will  acquire them and try to wring out what's left of the interest/mystique of  the brand name.

@lalitk "...That may be true, but what seems to hurt many of these high-end audio companies in the long run is affordability...."

Correct. I am pretty sure that is exactly why Audio Research has just released their new affordable line. It has a name, but I don’t see it immediately. Some or all are under $10K. These are directed exactly at entry level. 

While that may seem like a lot of money. When I bought my first audiophile product in 1979 it was a Threshold s500 amp... in todays dollars it cost $20K or in 1979 dollars $5K. So, the new ARC amp is $2.5K in 1979 dollars half the Threshold cost in 1979. 

Another thought on the dilemma. Forty and fifty years ago, there was little budget competition in the field. There was no Schiit, Lumin, Dark Something, Cayin, PrimaLuna. These companies now supply the springboard. 

 

https://audioresearch.com/new_website/new-products-coming-in-june-2025/

@ghdprentice I heard those at the southwest Audiofest, might’ve been the debut and I thought they sounded really, really good especially for the price

@yesiam_a_pirate   "...A sad fact is that the 2 channel high end audiophile is aging out and dying off. The successor generation has little use for high end gear. "

 

I have heard this for forty years. Yet the proliferation of high end companies has been incredible. The population of audiophiles has always been very small. But it must be larger than ever to support all these companies. 

 

On the other hand, before the audiophile there was the short wave enthusiast. But, music is one of the most shared interests of people world wide... so, I'm thinking, not. 

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