The Japanese audio manufacturer Onkyo is officially insolvent. What’s next for the popular brand?
The traditional company Onkyo is primarily known for its high-quality stereo systems. Founded in 1946, the Japanese manufacturer also sold turntables and loudspeakers for a long time. In addition to well-known names such as Panasonic, Samsung and Sony, Onkyo is therefore one of the largest manufacturers of audio electronics. Apparently, that didn’t help much given the current developments: On Friday, May 1, 2022, Onkyo had to file for bankruptcy.
Onkyo bankruptcy was predictable
Onkyo has not only suffered significantly during the Corona crisis. The Japanese company has been struggling with developments in the audio market for years. While stereo systems used to be considered the ultimate, today users consume music, radio plays and the like differently. Portable devices – above all, of course, the smartphone – are now far more popular.
Accordingly, money problems have existed for some time, and Onkyo lost its stock market listing in August last year. Attempts were made to keep the business going on a smaller scale, but it didn’t seem to be worth it enough, so Onkyo had to file for bankruptcy in the Osaka court. The company has accumulated more than $23 million in debt.
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What’s next for Onkyo?
“We have all possible ways [um das Business aufrechtzuerhalten] tried but ultimately couldn’t pay our debts,” the company said in a statement to Nikkei Asia magazine. As recently as January 2021, the shareholders had agreed to create new equity through stock options, but nobody wanted to invest in the company, which was in dire need of restructuring.
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In the meantime, the core business of audiovisual systems has been sold to Sharp and Voxx International in the USA. The headphone business, on the other hand, went to an investment fund. After all: Sharp and Voxx want to keep the brand as a joint venture. This joins Onkyo with other failed companies, especially under Voxx, which have already bought other companies like Pioneer and Inteegra in the past. Sharp intends to continue production in the future, while Voxx International will take over marketing.