Brand name remains
Electronics manufacturer Onkyo files for bankruptcy
May 16, 2022, 6:00 p.m
With headphones and stereo systems, the Japanese electronics manufacturer Onkyo becomes an established brand. The company cannot manage the change in music consumption towards portable audio devices. Now it’s broke.
The Japanese electronics manufacturer Onkyo has filed for bankruptcy in Osaka. The mountain of debt amounts to around 24 million euros. All possibilities to continue the business have been explored, but the debt could not be paid off, the company told the business magazine “Nikkei Asia”.
Founded in 1946, Onkyo has grown into a well-known brand for speakers, turntables and stereo receivers. The move in the audio industry to mobile devices in the 2000s steadily affected the company. While the market for analog audio devices such as stereo systems shrank, demand for portable audio players such as Apple’s iPod or smartphones grew. For Onkyo, that meant a steady decline in sales.
In January 2021, a withdrawal from the Japanese stock exchange due to a capital deficit at Onkyo was already under discussion. The shareholders initially averted bankruptcy by selling stock options, but ultimately too few options were sold, so that the company was delisted from the Tokyo Stock Exchange in March 2022 at the end of the financial year. The core business with stereo systems was subsequently sold to the Japanese competitor Sharp and the US group Voxx International, and the headphone division went to an investment fund.
However, the brand name is to be retained in the future. The new owners want to continue Onkyo as a joint venture. Alongside Pioneer, Panasonic, Samsung, Sony and Yamaha, Onkyo is one of the largest manufacturers of entertainment and audio electronics.