Thread: Onkyo Files for Bankruptcy

Surprised I have not seen this posted yet.

Classic Japanese Audio Brand Onkyo Finally Files For Bankruptcy

Sad to see, but the budget brands struggle. Play with pennies….


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Years back I owned a piece from their Integra line, rather liked it.

Originally Posted by Mikado463

Years back I owned a piece from their Integra line, rather liked it.

I had an Integra HT receiver. The HDMI board failed. It was a common problem. I got zip from the company. I gave the Integra to someone who just used it as a multichannel amplifier.

My first real Tape Deck was when they badged them together as Onkyo-Integra. I have an Integra 30.3 HT and had it serviced once under warranty, same as an older HK.

The first actual stereo I bought with my first Income Tax Return was an Onkyo Receiver and Tape Deck with Infinity RSb speakers. Along with a BSR TT I had a killer system for a 16 year old.

PAC Response to Onkyo Home Entertainment Bankruptcy Filing | Klipsch


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Originally Posted by Arcman

There are only so many audio brands that the market can handle. Onkyo has died a death much like Akai (for consumer audio--their name is still big in the electronic music samplers, etc), Fisher Sansui, etc. More will die as newer companies continue to rise. Panasonic has done a good job reviving the Technics name. Pioneer still has a strong following with their DJ gear and Elite A/V receivers.

You may want to read the link I posted above.


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Yes, this bankruptcy filing really has no effect on the audio market. It is not even clear to me what Onkyo the company (not the brand name) makes.

Though the statement does not clarify, it seems that this is more akin to a chapter 11 bankruptcy reorganization filing that we have here in the U.S. rather than a chapter 7 dissolution filing.

Premium Audio Company Response to Onkyo Home Entertainment Bankruptcy Filing | Onkyo USA

Emphasis added by me.

May 16, 2022

Dear PAC Partners,

Late last week, we learned that Onkyo Home Entertainment Corporation (OHE) filed for bankruptcy protection in Osaka, Japan for two of its subsidiaries as we anticipated. As a result, some false and misleading statements have surfaced in various media outlets that I’d like to address.

In a nutshell, this filing does not include the assets that were previously purchased last year by Premium Audio Company and Sharp. OHE essentially acted as a licensing company, similar to our relationship with Pioneer. This filing has no impact on our operations as we are not reliant on them for any function in developing or distributing Onkyo or Integra branded audio/video solutions. Additionally, consumer demand for these brands has never been stronger and we are positioned to expand production to meet demand.

In September 2021, Premium Audio Company (PAC), a wholly-owned subsidiary of VOXX International (NASDAQ: VOXX), announced that we along with Sharp Corporation created a joint venture and acquired Onkyo’s home audio/video business, which includes the long-standing and innovative Onkyo and Integra brands. PAC owns approximately 75% of the joint venture and manages all product development, the world-class engineering team and their prowess at Onkyo, sales, marketing, distribution, and all intellectual property of Onkyo’s home entertainment business. Sharp continues to manufacture Onkyo and Integra audio/video solutions products and spare parts in their state-of-the-art Malaysian plant, as they have in the past. The process for service and warranty will continue as it does today.

Demand for Onkyo and Integra products is very high, and we expect this to intensify in the coming years. We have been working very closely with Sharp to ramp up production and have grown our business significantly in the eight months since the acquisition was completed. We have big plans for these brands and are working diligently to expand production and reach to meet growing consumer demand. Rumors to the contrary are simply unfounded and misleading.

The PAC portfolio is comprised of some of the most legendary and revered brands such as Klipsch, Jamo, Onkyo, Pioneer, Pioneer Elite, Integra, Magnat, Heco, Teac and Esoteric.

Combining the number one speaker brand in the world with the most technically sophisticated Japanese electronics brands ushered in a new era of design, innovation, and performance. We look forward to another 75+ years of creating industry-leading products, profitability for our partners, and connecting people to their passion for entertainment.

Thank you for your continued support.

Sincerely,

Paul Jacobs

President & CEO

This looks like trying to put a positive spin on the situation.

20 years or so Onkyo was leading the pack in HT receivers, maybe it was the HDMI issue, I was hit with it but they replaced my receiver, I eventually replaced it with marantz receiver and was pleased with the move. Onkyo gradually lost momentum. They put out those vintage looking separates, my impression they weren't big movers but I could be wrong. I heard them and they sounded like Onkyo. Despite what this press release says I don't know of any online retailer that carries their products, I wasn't sure they even still made receivers. The article goes on to talk like being made by Sharp is a good thing.

Talking about market change, the home theater used to be booming. Now people stream with their TV's and the hottest seller in HT are soundbars. There are still nitch HT lovers but the mainstream has pretty much given up the theater for a soundbar.

Elite has sort of fallen off the radar after plasma has been surplanted. I didn't realize they have current model receivers if that's the case.

CES used to be the show where much of this type stuff was shown.

The future will be interesting, I think even video streaming is crowded and becoming less desirable but it's what people are left with mostly. Will cable and discs come back?

Anyway, Onkyo used to make a fine product, offering a higher current amp section than other similar products, I would like to see them hang in there.

Originally Posted by Dizzie

Premium Audio Company Response to Onkyo Home Entertainment Bankruptcy Filing | Onkyo USA

Emphasis added by me.

May 16, 2022

Dear PAC Partners,

Late last week, we learned that Onkyo Home Entertainment Corporation (OHE) filed for bankruptcy protection in Osaka, Japan for two of its subsidiaries as we anticipated. As a result, some false and misleading statements have surfaced in various media outlets that I’d like to address.

In a nutshell, this filing does not include the assets that were previously purchased last year by Premium Audio Company and Sharp. OHE essentially acted as a licensing company, similar to our relationship with Pioneer. This filing has no impact on our operations as we are not reliant on them for any function in developing or distributing Onkyo or Integra branded audio/video solutions. Additionally, consumer demand for these brands has never been stronger and we are positioned to expand production to meet demand.

In September 2021, Premium Audio Company (PAC), a wholly-owned subsidiary of VOXX International (NASDAQ: VOXX), announced that we along with Sharp Corporation created a joint venture and acquired Onkyo’s home audio/video business, which includes the long-standing and innovative Onkyo and Integra brands. PAC owns approximately 75% of the joint venture and manages all product development, the world-class engineering team and their prowess at Onkyo, sales, marketing, distribution, and all intellectual property of Onkyo’s home entertainment business. Sharp continues to manufacture Onkyo and Integra audio/video solutions products and spare parts in their state-of-the-art Malaysian plant, as they have in the past. The process for service and warranty will continue as it does today.

Demand for Onkyo and Integra products is very high, and we expect this to intensify in the coming years. We have been working very closely with Sharp to ramp up production and have grown our business significantly in the eight months since the acquisition was completed. We have big plans for these brands and are working diligently to expand production and reach to meet growing consumer demand. Rumors to the contrary are simply unfounded and misleading.

The PAC portfolio is comprised of some of the most legendary and revered brands such as Klipsch, Jamo, Onkyo, Pioneer, Pioneer Elite, Integra, Magnat, Heco, Teac and Esoteric.

Combining the number one speaker brand in the world with the most technically sophisticated Japanese electronics brands ushered in a new era of design, innovation, and performance. We look forward to another 75+ years of creating industry-leading products, profitability for our partners, and connecting people to their passion for entertainment.

Thank you for your continued support.

Sincerely,

Paul Jacobs

President & CEO

Originally Posted by nicoff

From the linked article that Mike posted:
"The company’s failure has been blamed on its inability to adapt to the fast-changing audio market which is increasingly software-based and revolves around streaming music rather than listening to it on physical formats like CDs. More of us are using our smartphones for listening to music and even watching films."

In high-end audio there are many examples of audio companies that did not survive the demise of their founder(s). But, as seen here, even much larger, publicly-traded companies can fail if they don't adapt.

But is that what is actually happening in this case? The original article is so full of inaccuracies it's hard to determine. Is Onkyo actually "failing" (debt restructuring is not necessarily "failing")? How big is Onkyo without Onkyo, Integra and Pioneer? What does Onkyo actually make?