Audio Research filing

[SteveFord]

Sad news:
https://www.whatsbestforum.com/threads/ ... rch.36751/

[AnotherJohnson]

It is sad.

Too much customer service I suppose.

I really thought that Trent Suggs had things in good hand.

ARC is about 10 times as big as CJ, so it will affect a lot of folks.

Maybe they’ll be like Gibson and operate in bankruptcy for decades. Probably not.

[AnotherJohnson]

ARC has gone through rough patches before.

They were sold to an Italian holding company, as was McIntosh. Then the McIntosh Group was formed with ARC as a member company. Then ARC was sold to Trent Suggs, who had been part of the sales force in earlier days.

Receivership is not bankruptcy, but neither is it a good place to be.

Many people think that the attempt to modernize ARC has been its undoing. The Ward Feibiger designs were highly regarded. My pieces are all from the Feibiger era and, as long as they can be kept going, they’ll be my end game.

When you look at the complexity of the designs, and their user interfaces, ARC gear seems like an incredible bargain. I guess it really was underpriced.

[AnotherJohnson]

The I/50 entry level integrated amp in many cerakote color choices may have been part of the undoing.

It was a logical idea that just never got legs.

$5500 is a lot of dough for an entry level piece. ARC was doing JIT manufacturing to match orders, but these may have been batch builds. Earlier this year they changed the rules to allow advertising and internet sales of these units. That suggested to me that they were not moving.

The tube supply chain issues can’t have helped either. ARC was already noted for very high tube prices. With tube scarcity, this has only gotten worse.

[SteveFord]

I would think the other tube gear companies may be in similar straits.
ARC is one of the great audio companies, I hope they can get it worked out.

The good thing about tube gear is if they keep the designs simple enough it can always be repaired.

[AnotherJohnson]

I would think the other tube gear companies may be in similar straits.
ARC is one of the great audio companies, I hope they can get it worked out.

The good thing about tube gear is if they keep the designs simple enough it can always be repaired.

I think this may have evolved. Modern, multilayer printed circuit boards, proprietary caps and wires, custom computerized displays, and other modernizations are mostly not amenable to aftermarket repairs. And ARC has been at the front of advancements. If you look at “authorized repair centers,” they often specifically exclude models of the last decade even if the model has been retired.

Point to point has been an advertising claim of Prima Luna. Point to point is more variable in sound from sample to sample unless wire dressing is perfect. But point to point with no features is the most repairable.

No need to borrow trouble. It will be better to let the story unfold in its natural way.

[admin]

Well, this kind of sucks... The ARC gear always seemed to be high end at not outrageous pricing for their entry level gear and then the sky is the limit with their top offerings. Making solid gear period I hope somebody may be able to come in with funding to keep the lights on.

[AnotherJohnson]

It is what it is.

When I worked for Kodak, they built everything from cash on hand. No debt of any kind. It was a very stable company.

After I left in 1976 they began to use debt to move into markets as they were guided more and more by MBA wonders.

The MBAs drove it to bankruptcy, aided by some horrendous IP decisions.

ARC seems to have been making the “right” MBA type decisions, when in fact MBAs are the root cause of much that is wrong with our society today.

Sigh …

I hope they can turn it around.

[AnotherJohnson]

Im going to try to post a link to some info from the OP’s link.

It looks like good news.

https://www.whatsbestforum.com/threads/ ... ost-873884

It works.

Trent has been replaced. Sad for him. He’s a good guy.

If the info in this post (which comes from an insider) comes to fruition, it would appear that this is just a hiccup and that ARC will remain in business.

[admin]

That's reassuring. Will look forward to more updates and sounds like there will be some changes in the next few weeks but this certainly doesn't sound like doomsday.

[AnotherJohnson]

I sent a question to service yesterday and I had a detailed response from Greg before 10 am this morning. I need an LED for one of the meters. $10 and readily available.

[Big Dog RJ]

This is definitely sad news and not a good place to be in. Nonetheless, the way things are going in this crazy world and global economy, I very highly doubt that any aliens out there would be interested in visiting mother earth... our planet is pretty useless to them. We've buggered it up to such an extent, that not only is climate change running amuck but now audio companies are in the jitters. Oh well, we'll have to see how this one pans out... until then, hold on to the glorious tube gear, be it ARC, CJ, VTL or VAC, keep those tubes glowing!

Cheers, RJ

[AnotherJohnson]

This is definitely sad news and not a good place to be in. Nonetheless, the way things are going in this crazy world and global economy, I very highly doubt that any aliens out there would be interested in visiting mother earth... our planet is pretty useless to them. We've buggered it up to such an extent, that not only is climate change running amuck but now audio companies are in the jitters. Oh well, we'll have to see how this one pans out... until then, hold on to the glorious tube gear, be it ARC, CJ, VTL or VAC, keep those tubes glowing!

Cheers, RJ

In my post 4 up from here I’ve linked to a post from an insider. He’s painting it as a speed bump. He indicates a new owner is in the offing.

I’ve been surprised at how little public info is available.

One thing that troubles me is tube availability. As I’d mentioned earlier today my inquiry to Greg in customer service that I wanted to buy a set of LEDs, was quickly answered in the positive.

But I also expressed interest in a set of tubes for my pair of REF250SEs. His response was that it has been difficult to get tubes out of Russia and that their supplier is several months behind on orders. So I’m on “the list” for a set.

I’ve got 16 KT150s on the shelf and 20 total in amplifiers. So I’m OK. But I’m glad to be on the list.

I checked with Upscale. They have KT150s, but won’t sell them to you unless you’ve bought a Prima Luna amp that uses them.

There are a few others who do have stock, but of unproven, or of proven poor, quality.

A big question is “If you’ve got tubes to make new amplifiers, why do you expect people to buy those amplifiers if existing customers can’t get replacement tubes?”

[Big Dog RJ]

Yes, that's a fair point.

Regarding the big question about tubes and tube gear in general, I guess the answer to that is buy replacement sets from the amp brand manufacturer directly. If their supply is low... which is the case globally, then try to find other suppliers who are willing to sell matched pairs. The thing with ARC gear is that they HAVE to be matched pairs, nothing else.

I've just learned that in the ART108A's, the tubes have to be perfectly matched pairs as well. This is only for the ART27A and ART108A.

Kevin Deal not selling to anyone unless you've bought Prima Luna gear us just absurd. Upscale have been in this business for a long time, and sometimes I think his policies on tube sales are a bit snobby. Also the fact that he only ships to US addresses, absolute bollocks! So why bother with KD. I wouldn't waste my time with him.

I think ARC will be alright once they have secured new ownership. All other areas of operation are running: production, testing, packing, shipping, sales & after service, plus tech support, so nothing has really gone sideways... it's just the financial aspect and ownership. Once those two elements are in order, they will forge ahead business as usual.

If this sort of thing were to happen to any smaller company, that outfit would've shut down. In ARC's case, the back-end structure is still running, it's only the front-end that requires new leadership. Hope all goes well for them.

Cheers, RJ

[admin]

The fact that ARC is still up and running means they have capital. Payroll has to go out every week. If they couldn't do that, then the place would be closed. I hope the transition to the new owner is swift and that it does not negatively influence the quality of the gear and service that they currently provide. The next few weeks at ARC will certainly be interesting.

[AnotherJohnson]

Kevin Deal not selling to anyone unless you've bought Prima Luna gear us just absurd. Upscale have been in this business for a long time, and sometimes I think his policies on tube sales are a bit snobby. Also the fact that he only ships to US addresses, absolute bollocks! So why bother with KD. I wouldn't waste my time with him.

I like the idea that he is providing support for his own customers first. He is showing loyalty.

I also like that he is not price gouging, but instead controlling access. His customer will not only get replacement tubes, but will get them at a fair price.

I do not want his Chinese built Prima Luna gear myself. But I respect that he is supporting his Prima Luna customer base.

Regarding his shipping policies, this reluctance to ship tubes to other countries was probably lawyer advice when all the Western world decided to virtue signal by blocking Russian sourced imports. Yes, the Russian tube factory is American owned… but there is no debate that the tubes are made in Russia. Even getting them into the US is no cake walk at this point.

Kevin doesn’t need the headaches of sending made in Russia stuff to addresses where the government has blocked such imports. It may be easy as pie, but the exception to the rule is a headache he’s unwilling to suffer.

[Big Dog RJ]

Yes, that's a fair point and makes sense. Didn't look at it that way though. Was more on the premise that if someone or anyone wants to buy your tubes, and if you've got stock why not sell & ship to the Nth pole... that Eskimo Joe wants his fine tunes as well as keep warm.

Apparently ARC says that they don't have stock of spare tubes... only have stock for new production gear. Mmm, I'm wondering what the case is with the others; CJ, VTL, Manley Labs, Jadis, VAC etc.

Speaking of Manley Labs, one thing I know for certain 110% is that Eve Anne will always support her customers. Her service standards are outstanding, truly tops! That is actually one brand that I would happily retire with once I decide to give up CJ. That's only if...

I truly believe that JF has outlined a plan for CJ, covering the customer base with the top end Art gear, and offering lower cost Classic gear, that looks like his plan for now. I guess it makes more sense given the global economic situation.

Moving forwards, ARC may also have to lessen their product line. They've got way more than what CJ offers. VTL and Manley Labs seem to have always had a solid following, and Jadis and VAC are going ok as well. Although Jadis offers the widest range of all, including quite a number of integrated amps, all tube design. Time will tell, and the future generations listening habits and gear preferences will drive the highend, not price.

Ok then, back to my fine tunes.
RJ

[AnotherJohnson]

I’ve got to admit that the tube situation is disconcerting at best.

It is making Burmester, DarTzeel, CH, and even McIntosh look like good directions.

I would be more attracted to McIntosh if they would join one camp. These serial and parallel hybrid designs do not give me a warm and fuzzy feeling. Be hot or cold … if you’re like warm, I will spit you out. Also sprach der Meister.

[AnotherJohnson]

Be hot or cold … if you’re like warm, I will spit you out. Also sprach der Meister.

LUKE, not LIKE.

I really hate Otto Korrekt.

[Big Dog RJ]

Trent Suggs seems like a great chap. They say that he looks after his team of "associates" and never refers to them as employees. Also is very passionate about the company and brand, so wondering how on earth did ARC end up in a financial pickle... what was it that he did so badly in? To a such a point that he had to leave. That's a real shame, wonder how he's feeling about the whole thing.

There's always two sides of the story... would be very interesting to learn about his side from him of course.
Mmm... interesting times ahead for ARC.

Until then, keep those tubes glowing!
Cheers, RJ