Strata-gee.com

Strategy in TECH...

You are here: Home / Archives for Teac

Teac

Budding Onkyo & Voxx Romance Grows, Adds Teac & Esoteric to 11 Trading Company

by Leave a Comment

photo of teac component once part of Onkyo now to be distributed by 11 Trading Company

This week we learned that 11 Trading Company…part of Premium Audio Company…which itself is part of Voxx International (love those big corporate structures), has added the only remaining Onkyo brands – Teac & Esoteric – to their distribution line list. They did not include these brands in the original announcement of their agreement with Onkyo, but most people expected it to be added in time. With this new development we get a nice progression of the budding relationship between the companies – Voxx distributing Onkyo, Integra, Pioneer, Pioneer Elite, Teac & Esoteric – while Onkyo Corp. becomes the Klipsch distributor in Japan. Where could this be heading?

See more on Onkyo & Voxx/11 Trading Company partnership…

[Read more…] about Budding Onkyo & Voxx Romance Grows, Adds Teac & Esoteric to 11 Trading Company

Gibson Investment Gone, Onkyo Sells Off European Operations

by 1 Comment

In Restructuring, Company Scales Back to ‘Core Competencies’

onkyologoAll 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

by 2 Comments

Photo of Gibson CES promoFounded 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

by Leave a Comment

Photo of Gibson CES promoWe 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

by 2 Comments

Hundreds of Employees Facing Pink Slips

Gibson CEO Juszkiewicz
Gibson’s CEO Henry Juszkiewicz

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

by Leave a Comment

Famous musicians using Gibson guitarsThe 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.

See more about the continued dramatic developments surrounding Gibson… [Read more…] about Gibson Sells One Division & Cuts Staff in Another

CEO Says Gibson Will Dump Brands

by Leave a Comment

Financials Show Sales & Profits Continue to Slide

Photo of Gibson CEO Henry Juszkiewicz
Henry Juszkiewicz, CEO

Gibson Brands CEO Henry Juszkiewicz continues to profess confidence that the company will be able to successfully refinance their over $500 million debt before a mid-year maturation comes due. Telling the Nashville Post that the company is going through a little “spring cleaning,” Juszkiewicz says the company already dropped their Cakewalk music software group, and other brands in their portfolio are next to go. But a financial report to bondholders shows continued deterioration of both sales and profits, suggesting that simply pruning a few brands from the portfolio may not be enough to attract new investors or lenders.

See more on the dire situation at Gibson Brands… [Read more…] about CEO Says Gibson Will Dump Brands

Gibson Stuns the Music World, Shuts Down Cakewalk

by 5 Comments

Acquired in 2013, Cakewalk was Killed for Philips, Gibson Says

Cakewalk logoIn what many in the industry are suggesting is yet another indicator of struggles at Gibson Brands, the company announced a little over a week ago that it would wind down operations at Cakewalk Inc., a popular music creation software company it owns. Music industry-centric websites around the internet exploded with largely critical coverage of the move, and comments on Cakewalk’s website are decidedly negative – both sad and angry – as customers seek to process the shocking news.

See more on yet another move by struggling Gibson…

[Read more…] about Gibson Stuns the Music World, Shuts Down Cakewalk

Gibson Brands Continues to Show Signs of Strain

by 1 Comment

Downsizing Factory & Dilution of Onkyo Ownership

Logo for Gibson BrandsRecent developments have thrust Gibson Brands back into the spotlight once again – a spot that CEO Henry Juszkiewicz doesn’t particularly enjoy, unless he’s there on his own terms. But this time, two tidbits of news have conspired to bring Gibson, and their financial challenges to the fore. And as we try to digest all of this, it’s clear that Gibson is continuing to show signs of strain due to sluggish results from its aggressive diversification into consumer electronics jeopardizing its ability to deal with looming huge debt payments on the loans used to acquire CE brands.

See the news that shines a light on Gibson’s troubled financial position… [Read more…] about Gibson Brands Continues to Show Signs of Strain

Is Gibson Brands Headed for a Default?

by 3 Comments

Moody’s Hits Gibson Brands with Another Credit Downgrade

Logo for Gibson BrandsMoody’s Investors Service, one of the largest credit rating services in the world, has downgraded the credit rating for Gibson Brands, the Nashville-based parent of Gibson Guitar, Onkyo, Teac, KRK, Philips, Stanton and more. Moody’s has set their rating on Gibson Brands debt to Caa3, down one step from Caa2.

The move caused Wall Street investment analyst The Street to raise the specter of the possibility of Gibson Brands defaulting on their debt.

See why Moody’s says the Gibson Brands situation is unsustainable… [Read more…] about Is Gibson Brands Headed for a Default?