The Future of Audio Research

**Mike** · May 10, 2023, 09:01 PM

Audio Research Corporation Is Dead! Long Live the New Restructured Audio Research Corporation! | Tracking Angle

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**MikeCh** · May 10, 2023, 11:06 PM

Originally Posted by Mike

Audio Research Corporation Is Dead! Long Live the New Restructured Audio Research Corporation! | Tracking Angle

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Fingers crossed for recovery and longevity.

**still-one** · May 11, 2023, 09:12 AM

Basically what I indicated would happen.

**Dizzie** · May 11, 2023, 01:03 PM

Would ARC benefit from a radical change in cosmetics? Do their traditional handles date them and discourage younger buyers?

**still-one** · May 11, 2023, 01:28 PM

Originally Posted by Dizzie

Would ARC benefit from a radical change in cosmetics? Do their traditional handles date them?

I beleive the change to the current glass face's was a marked improvement in their industrial design. Others may have a different opinion.

**nicoff** · May 11, 2023, 05:03 PM

Originally Posted by Dizzie

Would ARC benefit from a radical change in cosmetics? Do their traditional handles date them and discourage younger buyers?

It is not the handles. Taste is a subjective thing, but IMO ARC has not done much in the area of industrial design in a long while. Take for example their top-of the line mono amps (the 750) with all the exposed tubes on top. Having all the tubes exposed might give an owner bragging rights, but aesthetically the whole things look fairly ugly (and impractical if children are around).
In any event, good luck to the new owners of ARC. Hopefully, they will bring new thinking for the benefit of current and future owners.

**gadawg** · May 12, 2023, 11:13 AM

Did I miss who actually is acquiring Audio Research? Do we know who ended up being the white knight?

George

**Mike** · May 12, 2023, 11:22 AM

Originally Posted by gadawg

Did I miss who actually is acquiring Audio Research? Do we know who ended up being the white knight?

George

Announcement Monday.

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**Mr Peabody** · May 12, 2023, 04:43 PM

I'm not sure what to make of the announcement. It said Audio Research is gone, the company is no more. Then someone bought the name. Does this mean the new company will begin debt free of the old debt? Everyone owed money sucks up losses from ARC? Does the new Audio Research get the old product, inventory, designs etc.?

**mep** · May 12, 2023, 06:19 PM

Originally Posted by Mr Peabody

I'm not sure what to make of the announcement. It said Audio Research is gone, the company is no more. Then someone bought the name. Does this mean the new company will begin debt free of the old debt? Everyone owed money sucks up losses from ARC? Does the new Audio Research get the old product, inventory, designs etc.?

Patience grasshopper. I'm sure all the details will come out after the new owner(s) are made public on Monday.

**the professor** · May 12, 2023, 06:22 PM

Typically,

The new owner will get the name, patents, inventory, designs, customer lists etc. and will have zero of the old debt. That doesn't mean it won't have debt tho - it will probably secure debt to purchase ARC - sometimes that includes some of the same lenders involved now, but under new terms.

Most new owners will honor previous warranties that end users currently have. But they don't have to.

It becomes a PR nightmare if they don't.

Originally Posted by Mr Peabody

I'm not sure what to make of the announcement. It said Audio Research is gone, the company is no more. Then someone bought the name. Does this mean the new company will begin debt free of the old debt? Everyone owed money sucks up losses from ARC? Does the new Audio Research get the old product, inventory, designs etc.?

**kzhtoo** · May 12, 2023, 06:53 PM

Originally Posted by the professor

Typically,

The new owner will get the name, patents, inventory, designs, customer lists etc. and will have zero of the old debt. That doesn't mean it won't have debt tho - it will probably secure debt to purchase ARC - sometimes that includes some of the same lenders involved now, but under new terms.

Most new owners will honor previous warranties that end users currently have. But they don't have to.

It becomes a PR nightmare if they don't.

And the money the new owner used to purchase ARC will be paid to the current debtors?

**the professor** · May 12, 2023, 07:24 PM

It's up to the court but yes first to secured debts, then to unsecured debtors, then to any stockholders. Although almost always there is only enough money for the secured debtors, so everybody else loses their money.

**Mechnutt** · May 14, 2023, 10:34 PM

I am still not a fan of their design. Handles look outdated and are not necessary. Even Frank Van Alstine realized that he had to upgrade the cosmetics of his gear to increase sales.

I think that they should have offered some lower priced gear for people to get their foot in the door with their products which could have led to upgrading to their more expensive gear. Their integrated amp was too little too late.

**mep** · May 15, 2023, 08:59 AM

Originally Posted by Mechnutt

I am still not a fan of their design. Handles look outdated and are not necessary. Even Frank Van Alstine realized that he had to upgrade the cosmetics of his gear to increase sales.

I think that they should have offered some lower priced gear for people to get their foot in the door with their products which could have led to upgrading to their more expensive gear. Their integrated amp was too little too late.

That's one opinion...

**Porsche** · May 15, 2023, 10:34 AM

there issue isn't the "looks" of there gear, that's absurd

**Mr Peabody** · May 15, 2023, 10:37 AM

I like functioning handles on front, one of my favorite amps was my Threshold with the handles on front and even had feet on the back so the amp could be sat down. What I really don't understand are the handles on the back of an amp.

**Mechnutt** · May 15, 2023, 11:49 AM

I prefer handles on the back like Pass amps. Convenient and out of the way.

**a.wayne** · May 15, 2023, 02:39 PM

Originally Posted by Mechnutt

I am still not a fan of their design. Handles look outdated and are not necessary. Even Frank Van Alstine realized that he had to upgrade the cosmetics of his gear to increase sales.

I think that they should have offered some lower priced gear for people to get their foot in the door with their products which could have led to upgrading to their more expensive gear. Their integrated amp was too little too late.

Franky V and ARC in the same sentence , hahaha

ARC issues is not cosmetics IMO, Most Toob gear looks dated and is not a big deal to those who love Toobs. High purchase cost , constant maintenance and reliability are bigger issues , but mostly ARC hasn't been playing the matrix game as well as others, so poor promotions , very little to no chatter, et al has been their biggest negative todate ..!

Regards

**Mike** · May 15, 2023, 03:33 PM

Val and Acora buy Audio Research.

Following the recent news about Audio Research related to the recent US banking crisis, we report that the company was acquired by Valerio Cora of Acora Acoustics, passionate about music and from a very young age integrated in electronic and speaker design.

I expect this change and no delays will be expected, either in production or in technical support.

Dave Gordon (on Audio Research since Bill Johnson's time) and Allan Haggar continue on managing the company and, as planned, will be present at Munich's High End Show, Hall 2, Stand F099, which takes place this week.
We wish a long and prosperous future to the company that reborn valve amplification 53 years ago. Certainly new products are expected in the coming years.

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**Mr Peabody** · May 15, 2023, 09:59 PM

Wow, this should be, interesting.

**Mr Peabody** · May 16, 2023, 11:44 AM

Audio Research you can take us for granite

**a.wayne** · May 16, 2023, 03:38 PM

So no more VAC and Acora at shows ...!

**Mike** · May 16, 2023, 03:50 PM

Originally Posted by a.wayne

So no more VAC and Acora at shows ...!

Probably.

The whole ARC thing has turned into a giant shit show.

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**SCAudiophile** · May 16, 2023, 04:52 PM

Details? Are you referring to new developments since Friday?

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**Mike** · May 16, 2023, 05:04 PM

Originally Posted by SCAudiophile

Details? Are you referring to new developments since Friday?

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It’s a deal, its not a deal…etc

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**SCAudiophile** · May 16, 2023, 05:13 PM

Thanks....

Oy, such a deal !

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**Mechnutt** · May 18, 2023, 10:44 PM

I did not say that that is the sole issue. The issue is innovation and no lower priced gear for people to get their foot in the door.
However, it is a deal breaker for some, just as some people buy Mac gear based on the way it looks. I am not necessarily into the bling of gear but I do like gear that looks good although it is not a deal breaker for me. But to say that is absurd that looks don't play a small part, I find that absurd. If it came down to 2 pieces of gear that had similar features, sound and price but one looked much better, well, you know the one that many people would pick.

**CPP** · May 22, 2023, 09:15 AM

Well hopefully this new Audio Research doesn't follow the same direction that THIEL Audio did.

**Mr Peabody** · May 22, 2023, 11:42 AM

As Mike said and I have heard from others who I trust to know, this isn't a done deal yet.

I also heard that ARC's appearance at the Munich show was just a small cubicle and they were their to prevent panic as European dealers are sitting on inventory.

**Ritmo** · May 22, 2023, 03:32 PM

Originally Posted by Mr Peabody

As Mike said and I have heard from others who I trust to know, this isn't a done deal yet.

I also heard that ARC's appearance at the Munich show was just a small cubicle and they were their to prevent panic as European dealers are sitting on inventory.

It was a booth with 3 components on top of 3 pedestals. I wanted to say hi to Dave but the several times I came by he was busy.

Lastly, hope they can get through the sale process and stay in business.

**u-sound** · May 22, 2023, 05:29 PM

i have no clue what the problem could be, but as far as i understood the founder sold the company a few years back to mc intosh and stayed at the company.
usually a sign for low cash liquidty.
then sombody else bought the company and employed a couple of old friends on top.
may be too much salary to pay monthly?

**Mike** · May 22, 2023, 05:41 PM

Originally Posted by u-sound

i have no clue what the problem could be, but as far as i understood the founder sold the company a few years back to mc intosh and stayed at the company.
usually a sign for low cash liquidty.
then sombody else bought the company and employed a couple of old friends on top.
may be too much salary to pay monthly?

No clue?

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**u-sound** · May 22, 2023, 05:49 PM

the company said they are full of backorders, so i thought they spend too much cash ineffectively.

yes, no clue.
is the deal done now, does acora buy definetively?

**Mike** · May 22, 2023, 05:56 PM

Originally Posted by u-sound

the company said they are full of backorders, so i thought they spend too much cash ineffectively.

yes, no clue.
is the deal done now, does acora buy definetively?

Don’t believe everything you hear. Or, rather, perspective.

Read the court the documents. Lots of details.

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**u-sound** · May 22, 2023, 06:16 PM

just overflew a bit of papers and thought the owner (trent suggs)was gambling with the fire

i then googled the man and found an interview with him about his career (was fired everywhere quickly) and about his relation with audio research.
i am sure he was enthusiastic and liked the company. he invested his money and fucked up, so i feel sorry for him. i cant imagine any bad intention.
but yeah, people in trouble are prone to become cheaters.
he was talking about 400 backorders !! , so i thought the problem is elsewhere.

**MichaelsMinute** · May 22, 2023, 06:28 PM

Originally Posted by u-sound

just overflew a bit of papers and thought the owner (trent suggs)was gambling with the fire

i then googled the man and found an interview with him about his career (was fired everywhere quickly) and about his relation with audio research.
i am sure he was enthusiastic and liked the company. he invested his money and fucked up, so i feel sorry for him. i cant imagine any bad intention.
but yeah, people in trouble are prone to become cheaters.
he was talking about 400 backorders !! , so i thought the problem is elsewhere.

I have no insight into any of the details other than what we've all seen already. Having said that, I would surmise:

1) the fact he has been fired repeatedly says a lot about him and his abilities;

2) the fact no one else but him was willing to buy Audio Research after doing DD while it was up for sale says a lot about their overall situation.

**Mike** · May 22, 2023, 06:40 PM

The situation is probably much worse today with Covid and the war in Russia causing supply chain issues and debt and liabilities mounting.

Wish Val all the best, but oh boy….it’s an uphill climb.

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**u-sound** · May 22, 2023, 07:01 PM

Originally Posted by MichaelsMinute

2) the fact no one else but him was willing to buy Audio Research after doing DD while it was up for sale says a lot about their overall situation.

very good point, didnt even come to my mind.

look at this
audio research headqurter - Google Search

the debts is "only" 1,5million while theyr buiding must be worth at least 10 times more.
probably full mortage by now...

**u-sound** · May 22, 2023, 07:06 PM

Originally Posted by Mike

The situation is probably much worse today with Covid and the war in Russia causing supply chain issues and debt and liabilities mounting.

Wish Val all the best, but oh boy….it’s an uphill climb.

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with a big money infusion.....hope the new owner knows what he does.

**Mike** · May 22, 2023, 07:14 PM

Originally Posted by u-sound

very good point, didnt even come to my mind.

look at this
audio research headqurter - Google Search

the debts is "only" 1,5million while theyr buiding must be worth at least 10 times more.
probably full mortage by now...

No, they are renting according to documents I found.

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**Mike** · May 22, 2023, 07:14 PM

Originally Posted by u-sound

with a big money infusion.....hope the new owner knows what he does.

Agreed. Hope he doesn’t sink one to save the other.

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**u-sound** · May 22, 2023, 07:23 PM

Originally Posted by Mike

No, they are renting according to documents I found.

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ouch! wow, how much per month, jesus!! thats how audionet collapsed a few years back. renting overly posh properties.

**u-sound** · May 22, 2023, 07:30 PM

Originally Posted by Mike

Agreed. Hope he doesn’t sink one to save the other.

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exactely what i thought.
also there is a risk of market anti-synergy. for example as a speaker manufactor you find friends from electronic company to match each other and when you start selling electronics you become
a competitor.
if i remember corect, good old d.wilson statet for this reason he will never sell electronics.

**Porsche** · May 22, 2023, 07:40 PM

I doubt very seriously this has anything to do with covid or Russia, this has to do with leadership. IMO

**u-sound** · May 22, 2023, 08:03 PM

i got the impression it is not something that has happened suddenly.
burning cash for quite a while....just with increasing speed with every new problem.

**W9TR** · May 22, 2023, 09:36 PM

This is far from a done deal, since we have not heard anything from the court appointed administrator.

**the professor** · May 22, 2023, 11:26 PM

According to court docs: secured debt is $1.5 but they have another $1 million in unsecured debt.

If (big if) they actually had 400 back orders - I wonder how many have canceled now? Of course, if the dealers paid some money in advance for these, they can't cancel, but then what about their customers? The fall out could be massive.

Originally Posted by u-sound

very good point, didnt even come to my mind.

look at this
audio research headqurter - Google Search

the debts is "only" 1,5million while theyr buiding must be worth at least 10 times more.
probably full mortage by now...

**MichaelsMinute** · May 23, 2023, 05:54 AM

Originally Posted by the professor

According to court docs: secured debt is $1.5 but they have another $1 million in unsecured debt.

If (big if) they actually had 400 back orders - I wonder how many have canceled now? Of course, if the dealers paid some money in advance for these, they can't cancel, but then what about their customers? The fall out could be massive.

And don't forget those backorders aren't getting built any time soon with the Ukraine War and the ability to secure the tubes they need to build them.

**gadawg** · May 23, 2023, 10:59 PM

Originally Posted by MichaelsMinute

And don't forget those backorders aren't getting built any time soon with the Ukraine War and the ability to secure the tubes they need to build them.

Most if not all the tubes seem to be available from Electro-Harmonix which is who makes the Sovtek 6h30's and many of the other tubes as well. They have gotten quite expensive in the latest batches though as I believe they are having to get creative to get the tubes shipped out of Russia to the West but they are in production and shipping from the American owned factory in Russia.So while there may be a premium to pay I don't believe tube situation right now should make build of new product impossible. Would be interested to hear from the manufacturers what they see going on as I can only say what I've learned in recent email exchanges and purchases with EHX. Had no issues getting complete sets of tubes for all my BAT gear. REXII Pre and 2 REXII Amps.(50 tubes in all) in the past month.

George

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