I wonder if there are more companies in a weak position. It’s a very small industry.
Sad news. MBL has filed for insolvency.
- Thread starter Lee
- Start date
I am surprised about MBL.
Based on this development I suspect the answer to your question is "yes."
Based on this development I suspect the answer to your question is "yes."
I was very sad when my beloved amp marque from the mid 2000s, Hovland, went bust.
From what I gathered, they charged too little for their gear, and suffered with the mark ups demanded by distributors and dealers, leaving them struggling to make a profit/justifying their attention to detail and craftsmanship.
That seems to be an exception in the high end field where astronomic pricing is the norm.
From what I gathered, they charged too little for their gear, and suffered with the mark ups demanded by distributors and dealers, leaving them struggling to make a profit/justifying their attention to detail and craftsmanship.
That seems to be an exception in the high end field where astronomic pricing is the norm.
From pandemic boom to bust, with a bunch of boomers in their 70s now and buying less. Younger generations can’t afford hifi pricing as easily with high priced mortgages, car rates etc.
MBL Seeks Investors After Filing for Insolvency
High-end speaker and audio electronics maker MBL—best known for its groundbreaking Radialstrahler loudspeakers—has hit a financial rough patch. The Berlin-based company filed for insolvency on May 27, 2025, and is now actively seeking investors.
www.stereophile.com
Sad but not surprising. As stated many times, high end audio is in trouble. In addition to Audio Research (rescued) DarTZeel (status unclear), Krell (trying to pull a Lazarus), here are others that have not fared well. I fear others may also be similarly struggling to survive,
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I feel that it is too much to expect (or hope) that there won't be significant companies going under in our industry and this includes those like MBL with interesting product portfolios. In MBL's case perhaps worthy of a rescue...we shall see.
This is particularly true given the small and niche nature of our high end audio industry where the limited market expansion is unlikely to provide good business prospects for all. For there to be successful new and existing players and products, we have to have our losers.
The Asian market has done wonders to increase the size of the industry pie, but there are probably limits there as well.
I would not be surprised that there are quite a few more likely to be on the ropes.
I suspect that in some of these corporate problems there might be poor or unfortunate business decisions beyond product and price issues.
This is particularly true given the small and niche nature of our high end audio industry where the limited market expansion is unlikely to provide good business prospects for all. For there to be successful new and existing players and products, we have to have our losers.
The Asian market has done wonders to increase the size of the industry pie, but there are probably limits there as well.
I would not be surprised that there are quite a few more likely to be on the ropes.
I suspect that in some of these corporate problems there might be poor or unfortunate business decisions beyond product and price issues.
MBL Seeks Investors After Filing for Insolvency
High-end speaker and audio electronics maker MBL—best known for its groundbreaking Radialstrahler loudspeakers—has hit a financial rough patch. The Berlin-based company filed for insolvency on May 27, 2025, and is now actively seeking investors.
Sad but not surprising. As stated many times, high end audio is in trouble. In addition to Audio Research (rescued) DarTZeel (status unclear), Krell (trying to pull a Lazarus), here are others that have not fared well. I fear others may also be similarly struggling to survive,
View attachment 153034
Unfortunately it is a natural and expected process in audio - we had several high quality newcomers in the high-end industry in Europe in recent times, probably there is no space for everyone.
Also we must remember that combining speakers and electronics in the same brand always had risks in terms of marketing and distribution.
Loudspeakers are usually bought and sit around in homes forever , nothing like electronics which are much easier to sell and or trade along when upgrading.
Audiophiles will change everything in their setup before deciding on new speakers once selected…
Maybe their electronics line may survive ..
Audiophiles will change everything in their setup before deciding on new speakers once selected…
Maybe their electronics line may survive ..
the Chinese market then COVID fueled the great times; boosted prices and fat profits and maybe too much growth in overhead, anyone with high fixed costs and overhead is exposed when market forces squeeze things. many high end manufacturers never have enough less volatile entry level sales and margins to sustain things. inflated prices keep buyers away.
unless you have a favored 'hot' product it's tough sledding. which costs assets to keep going.
hope right sizing can help brands in trouble with good leadership if their products have what it takes.
unless you have a favored 'hot' product it's tough sledding. which costs assets to keep going.
hope right sizing can help brands in trouble with good leadership if their products have what it takes.
It’s difficult to assign blame when companies have distress. Audio is mostly tiny, private firms that don’t share information.
The big questions for MBL are:
How much debt did they carry relative to equity?
How much cash flow was generated relative to debt?
Was there a sudden downturn in sales?
Was there a cost spike due to tariffs or some other factor?
Was the overhead unusually large as a percentage of sales?
MBL threw extravagant press events…was this a factor?
The big questions for MBL are:
How much debt did they carry relative to equity?
How much cash flow was generated relative to debt?
Was there a sudden downturn in sales?
Was there a cost spike due to tariffs or some other factor?
Was the overhead unusually large as a percentage of sales?
MBL threw extravagant press events…was this a factor?
Elliot G.
Industry Expert
there are way more that have been forgotten, closed, broke, gone forever gone without a whisper.MBL Seeks Investors After Filing for Insolvency
High-end speaker and audio electronics maker MBL—best known for its groundbreaking Radialstrahler loudspeakers—has hit a financial rough patch. The Berlin-based company filed for insolvency on May 27, 2025, and is now actively seeking investors.
Sad but not surprising. As stated many times, high end audio is in trouble. In addition to Audio Research (rescued) DarTZeel (status unclear), Krell (trying to pull a Lazarus), here are others that have not fared well. I fear others may also be similarly struggling to survive,
View attachment 153034
Go read a few 20 year old TAS or Stereophile and check the adds
I would add the question: did it have too many employees / too much overhead for the reality of the revenues? Fifty employees seems like way, way too many people for any company in our industry except, possibly, the largest and most successful.
I doubt that even Wilson Audio has 50 employees.
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Or more simply, high end audio is simply way too expensive! I mean how many can afford $750k speakers?? And to be honest, this forum is a great example of insanely priced products. I love high end audio, but the future will be tough given the global market outlook.
DarTZeel and MBL and Audio Research are three names I did not expect to see on the insolvency/reorganization list.
Unfortunately, in what I describe as a shrinking economic pie industry, we underestimate how small, undercapitalized (living hand to mouth) or poorly managed are many companies in our industry.
Unfortunately, in what I describe as a shrinking economic pie industry, we underestimate how small, undercapitalized (living hand to mouth) or poorly managed are many companies in our industry.
MBL has been promoted quite heavily by the audio magazines. I am surprised they are in financial trouble. Or maybe the legacy audio press such as TAS and Stereophile doesn’t matter anymore.
I am not sure what this means. The problem isn't that a company has one extremely expensive product per se.
I think it is a problem if a company's whole business model is to sell fewer and fewer, but more and more expensive, products to fewer and fewer elephants. How is such a business model sustainable?
Its a hard / unforgiving world the market place .
I wish them all the best they had quit a unique product .
As a new comer i can tell its very difficult to get a foot in the door .
Very protective industry.
Luckily im Well capitalized with hardly any overhead . Most is outsourced.
Difficult to say what went wrong i think the whole covid era was quit difficult for consumers .
Home stereo will off course be one of the first things to be budgeted away in an economic downturn
I wish them all the best they had quit a unique product .
As a new comer i can tell its very difficult to get a foot in the door .
Very protective industry.
Luckily im Well capitalized with hardly any overhead . Most is outsourced.
Difficult to say what went wrong i think the whole covid era was quit difficult for consumers .
Home stereo will off course be one of the first things to be budgeted away in an economic downturn
While I can see that the future will be tough for some, it is kind of hard to have a high end audio segment with products that are in the hundreds of dollars to a handful of thousands.
Same with any other high end industry. High end gear, whether it be watches, audio, yachts, art or cars will always have uber priced items.
Tom
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