Following on from the news that the corporate remains of the holding company Onkyo had finally filed for bankruptcy in the Osaka District Court, the good news is that the brand will most definitely live on thanks to a deal that was struck back in September 2021. Well, it seems you can’t keep a good brand down.
As mentioned in the report I posted last Friday, the assets of Onkyo were sold to a joint venture between Sharp and VOXX. The parent of VOXX is Premium Audio Company, the owner of prestigious and classic audio brands like Elite, Integra, Klipsch, Jamo and quite a few others. Fortunately, Premium Audio Company and Sharp were on hand to buy the assets and stock from the original Onkyo holding company following the collapse of a deal with Sound United last year.
The joint venture between Sharp and Premium Audio Company acquired the Onkyo and Integra brands, including all the company’s intellectual property. The venture also took over responsibility for product development, engineering, sales, marketing and distribution of the entire Onkyo home entertainment business. The joint venture also assumed all manufacturing of these products, which includes the range of A/V and stereo receivers, amplifiers and hi-fi components under both the Onkyo and Integra brands.
The connection between Onkyo and Premium Audio Company goes back as early as July 2020 when the company began to distribute Onkyo, Integra, Pioneer and Pioneer Elite brands through its subsidiary: 11 Trading Company. In April 2021, 11TC also became the exclusive US distributor of the Teac and Esoteric audio brands. In September 2021, Premium Audio Company, through its joint venture with Sharp also established a licensing and distribution agreement with Pioneer Corporation. Sales of these branded products are all channeled through 11TC, which grew from its revenues from $13.7 million in Fiscal 2021 to $59.4 million in Fiscal 2022, with Onkyo branded products leading the way by volume.
Paul Jacobs is president and CEO of Premium Audio Company and he said: “Demand for Onkyo and Integra products has been 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 since the acquisition was completed. We have big plans for Onkyo and the other brands sold through 11TC and as we build production and expand distribution, believe sales will more than double in the near-term.”
It’s good to hear that the Onkyo brand will now be able to continue with a far more secure future and grow even further. While it’s sad to see the original company disappear, it’s heartening to hear that Premium Audio Company has big plans to ensure the Onkyo brand will be around for many more years to come. It’s a relief to me personally as I still have and use Onkyo kit that I’ve bought over the past decade.
More info: www.voxxintl.com