Electrocompaniet bite the dust

Gone bust, it appears.

Shame. Nice looking gear, don't think I've ever heard any.

-- Ian

 

Source? Sorry Ian, better to have statements like that backed up for legal reasons

Michael.

 

How's your Norwegian?

http://www.dagbladet.no/nyheter/2004/09/21/408972.html

(Actually, I read it on the M**a forum first, I don't make a habit of reading the Norwegian press.)

-- Ian

 

But you do make a habbit of the m*** forum

 

Oh well . Nice looking kit as you say. Never heard any either but owners seem to rave about it.

Michael.

 

And it wasn't so long ago that Tandberg vanished away.

 

Think I heard some at the Bristol show a couple of years ago, with Wilson Benesch speakers? Very nice if it's the system I think it was. Shame they're no more .

 

Must say I'd be surprised if the name/ models don't resurface in some form or another, it's such a well regarded brand.

 

If someone wants a translation of that Dagblad article, just say the word. Basically they went bust due to being the losing party in a legal dispute with a supplier, plus dropping turnover.

 

Yes please translate - As a very happy owner of an Electrocompaniet ECD-1 DAC I'm very sorry to hear of this.

Any word on what happens if servicing/repair is needed?

 

Rough translation og Dagblad [Daily Mail] article

Norwegian Hi-Fi Adventure Over
Michael Jackson thanked the company. Now Electrocompaniet [The Electric Company] is now compulsorily wound up.

Electrocomapniet's amplifiers have won prizes the world over, been acknowledged by Michael Jackson on one of his album covers. The good-sounding box has been sold to audio enthusiasts over the whole globe.

But now it looks black for Norwegian fine sound. The company has lost several millions since 1999, and has a large debt in the millions to a supplier as a consequence of a court ruling

Lost job

On 16th September, the ... court announced a compulsory winding up of Electrocompaniet. This is because the company lacks a state-approved accountant and CEO [?]. Neither has Electrocompaniet released accounts for the year before. The time limit was 1st August.

As far as the newspaper knows, the estate of Electrocompaniet has received calls for approaching two million crowns from clients. This can rise in the coming week, according to the receiver.

In addition, the company has a supplier-debt to Kitron Oslo AS [plc] of 5.5 million crowns. Interest is also due on this amount running from the summer of 2001. These monies were awarded by [a court] after a case against Electrocompaniet.

In 2001, Electrocompaniet sued Kitron for breach of a production agreement, bu Kitron contested the claim and won a counterclaim that released the millions-compensation.

Many of the employees have not been paid as agreed following the economic problems in Electrocompaniet. Nine employees have lost their jobs as a result of the compulsory winding up. In addition, three former employees have raised requirements to be paid.

Probably, several of these will be paid through the State's pay guarantee arrangement, said the receiver to this newspaper.

Low turnover

In addition to the economic problems as a consequence of the court case, Electrocompaniet has also been struggling with falling turnover. In the course of this year's first quarter, turnover was only two million crowns. In the same period last year it was six.

Part of Electrocompaniet's problem has been that they didn't have enough money to produce as much as the market wished, says [the receiver].

Global adventure

The founder [] still owns 10% of the company. He stepped down as CEO [?] in March this year. He first stepped down in July last year, but returned to his position in January this year... He started the Electrocompaniet adventure with a 25W amplifier that was celebrated as the world's best by the technical magazine Audio Critic . Since then, the amplifier has found its way into many of the world's best-known recording studios as well as thousands of homes.

In an interview with [another paper] he relates that in 1978 he was offered several tens of millions by an American electronics chain, if he stopped production and never again engaged in production of electronics for the rest of his life. He said no thanks.

Now Electrocompaniet's CD players and amplifiers are sitting on hi-fi shelves the world over.

 

Sounds like the beginnings of a conspiracy theory. I wonder who said "American Electronics Chain" might have been and why they felt so threatened by some Norwegian 25W amps they were willing to offer tens of millions (of dollars presumably) to stop them.

Sounds like a very dodgy claim IMO.

Michael.

 

Mike,
you should give serious consideration to going into a politics mate, hell you even look honest!

 

The Phoenix rises!! A new company has already been started in the name of ECS Holding. Production is in progress in Hungary (shift work no doubt!)

 

Electrocompaniet's plight must be scary viewing for other hifi manufacturers though, conspiracy theory or not.

One day you're an established hifi company, next minute you get into difficulties with a supplier, a court case ensues and BANG! You are history.

I'd certainly be worried...

Regards,

JonR