darTZeel out of business?

[darTZeel]

TO ALL MUSIC LOVERS

First of all, and I apologize for this, this post will not be as brief as I would have liked.

After this buzz, which has grown beyond my imagination - at least mine - I believe it’s time to put things into perspective.

Yes, darTZeel is undergoing a paradigm shift.
Yes, business is tough right now, but I am one of the few manufacturers who openly admits it, which may have led to some false rumors.

No, the darTZeel brand is not "out of business." We continue to serve our existing customers regarding after-sales service and updates.
We have launched our new homepage, which will evolve frequently in the near future, and on which our customers are invited to click on the Power Nose to enter their details.
Soon, any audiophile will also be able to register there to receive official information.
This will allow us to keep them exclusively informed about the new developments that will soon be implemented.

The production of the NHB, CTH, and LHC ranges is currently on hold, but we are not stopping it altogether. As I’ve said before, I find that people are tempted to read between the lines rather than focus on the whole message.
I will not comment on what has been claimed through this forum, which in my humble opinion should remain focused on what is dearest to music lovers: music itself.

A lot of ink has already been spilled in recent days about darTZeel, and two distinct camps seem to be forming.
However, as this debate progresses, I notice that the community is starting to realize the attack I am facing. This is a severe blow for me and my company.
For this reason, I will not go further into explanations that could be misinterpreted or distorted by the instigators of this attack.

I would like to clarify the following points, in case it’s not yet clear to everyone:
The happy owners of darTZeel instruments know me well, as I have been in direct communication with them since the beginning, in 2002.
They are part of the darTZeel family, they trust me, they know that the darTZeel brand will continue to exist for a long time. Thank you to them!
As of today, at the moment I am writing these lines, due to their increasing rarity, darTZeel instruments are gaining value.

Those who do not own darTZeel instruments can easily afford to make negative comments, whether about the prices, the sound quality, or my ability to offer something different in terms of musical reproduction, because they have never listened to them, seen them, or touched them long enough to understand. In my turn, I can understand that.
Please do not think that my words are pretentious or condescending, as this is not the case.
This is indeed true for any other brand on the market, as each one deserves attention, and if audiophiles buy them, it’s because they are worth it.
Criticizing without knowledge, slandering without proof, spreading false rumors, scheming to distort reality - these are the weapons used by cowards to achieve their goals.
Anyone reading these lines can contact me directly at rehve@dartzeel.com, and I will personally respond, with no bot replying on my behalf.

A small clarification for those who don’t know…
Here in Geneva, the official language is not German but French.

If what has been posted here is not clear enough, I’m sorry, but I will not say more.
Log in regularly to our website and follow the progression that our paradigm shift will bring.

Let the music play!
Hervé Delétraz

 

[Kingsrule]

Well you just called most of the posters in this thread cowards....you are off to a great start.....

 

[Thundersnow]

Those who do not own darTZeel instruments can easily afford to make negative comments, whether about the prices, the sound quality, or my ability to offer something different in terms of musical reproduction, because they have never listened to them, seen them, or touched them long enough to understand. In my turn, I can understand that.

I will not comment on “facts” and “truths” because there obviously seems to be several of them depending on who you ask. However, I will comment on the tone of the above said. You do realize that darTZeel is a piece of hi fi equipment and not a Stradivari? A 1954 Fender Precision — that’s an instrument. You, sir, are selling hi-fi gear. I don’t need to touch it to know what it is, trust me.

 

[adyc]

Gaining in value? Some prominent member in here tried to sell his pre and power at half price and there is no taker. Maybe he takes your advice to take down the advertisements because they are gaining values!

 

[A-Line]

Gaining in value? Some prominent member in here tried to sell his pre and power at half price and there is no taker. Maybe he takes your advice to take down the advertisements because they are gaining values!

Sounds like a substantial financial loss to me...just saying.

 

[darTZeel]

FTX was a multi-billion dollar company on a Saturday, by the following Thursday it had gone bust!

"Trust me I'm a journalist" has a bit of a hollow ring.

Irrespective of whether DZ is in trouble or not, I had another look at what Herve D said, and he's got a good point.

But above all, the race to offer the most expensive product, claiming it’s better, while giving ever larger discounts to end users. This extreme High-End market, whose noble and honorable purpose at its beginnings was to offer music lovers the best possible reproduction quality, has turned into a mass market, comparable to the souks of Marrakech – which I personally love, but for a different purpose – where the highest discount has become the main focus. This trend, though not new, is now rotting the extreme High-End market and is destroying the industry. I, Hervé Delétraz, founder and creator of the darTZeel brand, have decided that this business model no longer aligns with my vision of Extreme High End.

If it is the case that the extreme high-end market operates with stratospheric ticket prices that don't represent any kind of value and every other sale ends up in some massive haggle, then I can understand him being fed up and wanting out. Of course it is a little rich given he's part of the problem.

The real highlights of Marrakech are the Jardins Majorelle and the Musee Yves Saint Laurent. Each on their own justify the trip. Maybe brands like YSL offer a clue, in that they don't make any money on couture clothing, but have about a 95% profit margin on fragrances. In the audio industry fragrances are called cables.

So he's basically saying he's going from off-the-peg to couture. The problem is that couture generates brand value, but it doesn't often generate profit.

The bit that intrigued me was "venture into new territories in the audio field and dedicate time to shaping the future of High-End audio". This might include a direct distribution model. The problem is that in the EU and UK you just can't just dump your distributors and dealers like you can in the USA because they are protected by Commercial Agency Regulations.

Directive - 86/653 - EN - EUR-Lex

eur-lex.europa.eu

So if he thinks the future of high-end is extreme performance at more affordable prices, that's probably a worthy discussion.

No

Well you just called most of the posters in this thread cowards....you are off to a great start.....

Not at all. Once again, please read the entirety, not in between the lines...

 

[Tbzc]

After reading what Hervé said, I still don’t have meaningful answers to the key questions that are naturally raised in such circumstances:
• There is a claim that legal proceedings have been ongoing for a couple of months against the company, and it’s suggested that the company could go bust in a few weeks if the demands aren’t met. Is this true or not?
• From a management liability perspective, another important question arises: is Dartzeel solvent? In other words, can the company meet its short- and long-term liabilities? Hopefully you do understand these questions can have personal legal consequences.
• You mentioned that production has been halted for all products in the current line. I sincerely hope all existing orders have been fulfilled and that there’s enough cash for the company to survive this “paradigm shift.” Have they? There was a claim in this thread about some paid orders not fullfiled in Asia. Since the company announced new anniversary products at the end of June, some customers may have committed to these. Hopefully, the legal proceedings hadn’t started by then, as this could be seen as suspicious, like someone trying to boost short-term cash flow to extend the company’s life for a few more months.
• If production has stopped, does the company have enough parts in stock to service existing products for years to come? From past interviews, it was clear that many components are outsourced.
• If the company doesn’t survive this paradigm shift (which could happen if the information about legal proceedings is true), who owns the intellectual property (brand, schemes etc) and assets (tools etc)? If the company owns them, it could be that Dartzeel continues without Hervé with a new owner. Which I certainly would not like to see.
I won’t go on, as I don’t want to come across as attacking Hervé. No, I think we’re all waiting, almost begging him to clarify the situation. I have not seen any attacks on him or Dartzeel. I believe this community deserves better answers than the ones we’ve been given so far. And please Hervé, if Roy is spreading false claims, deny them. It is very simple if not true.

 

[darTZeel]

After reading what Hervé said, I still don’t have meaningful answers to the key questions that are naturally raised in such circumstances:
• There is a claim that legal proceedings have been ongoing for a couple of months against the company, and it’s suggested that the company could go bust in a few weeks if the demands aren’t met. Is this true or not?
• From a management liability perspective, another important question arises: is Dartzeel solvent? In other words, can the company meet its short- and long-term liabilities? Hopefully you do understand these questions can have personal legal consequences.
• You mentioned that production has been halted for all products in the current line. I sincerely hope all existing orders have been fulfilled and that there’s enough cash for the company to survive this “paradigm shift.” Have they? There was a claim in this thread about some paid orders not fullfiled in Asia. Since the company announced new anniversary products at the end of June, some customers may have committed to these. Hopefully, the legal proceedings hadn’t started by then, as this could be seen as suspicious, like someone trying to boost short-term cash flow to extend the company’s life for a few more months.
• If production has stopped, does the company have enough parts in stock to service existing products for years to come? From past interviews, it was clear that many components are outsourced.
• If the company doesn’t survive this paradigm shift (which could happen if the information about legal proceedings is true), who owns the intellectual property (brand, schemes etc) and assets (tools etc)? If the company owns them, it could be that Dartzeel continues without Hervé with a new owner. Which I certainly would not like to see.
I won’t go on, as I don’t want to come across as attacking Hervé. No, I think we’re all waiting, almost begging him to clarify the situation. I have not seen any attacks on him or Dartzeel. I believe this community deserves better answers than the ones we’ve been given so far. And please Hervé, if Roy is spreading false claims, deny them. It is very simple if not true.

. This is not true
. There is no pending liability
. There is no pending order not being delivered
. I have enough part in stock for servicing. And I can produce others if needed. I remind you that am the darTZeel founder, designer and creator
. I, Hervé Delétraz, own all intellectual properties, trade marks and patents
I never said that this community attacked me. The attack is coming from a single individual. No need to name him.
I highly respect this community, this is the reason I just registered to give explanations.
However I find a bit strange that I have to justify my integrity while the attack is coming from somebody who's telling lies and nobody ask him to justify. I think now it's time to put him onto the grill, don't you think?

 

[orenatt]

TO ALL MUSIC LOVERS

First of all, and I apologize for this, this post will not be as brief as I would have liked.

After this buzz, which has grown beyond my imagination - at least mine - I believe it’s time to put things into perspective.

Yes, darTZeel is undergoing a paradigm shift.
Yes, business is tough right now, but I am one of the few manufacturers who openly admits it, which may have led to some false rumors.

No, the darTZeel brand is not "out of business." We continue to serve our existing customers regarding after-sales service and updates.
We have launched our new homepage, which will evolve frequently in the near future, and on which our customers are invited to click on the Power Nose to enter their details.
Soon, any audiophile will also be able to register there to receive official information.
This will allow us to keep them exclusively informed about the new developments that will soon be implemented.

The production of the NHB, CTH, and LHC ranges is currently on hold, but we are not stopping it altogether. As I’ve said before, I find that people are tempted to read between the lines rather than focus on the whole message.
I will not comment on what has been claimed through this forum, which in my humble opinion should remain focused on what is dearest to music lovers: music itself.

A lot of ink has already been spilled in recent days about darTZeel, and two distinct camps seem to be forming.
However, as this debate progresses, I notice that the community is starting to realize the attack I am facing. This is a severe blow for me and my company.
For this reason, I will not go further into explanations that could be misinterpreted or distorted by the instigators of this attack.

I would like to clarify the following points, in case it’s not yet clear to everyone:
The happy owners of darTZeel instruments know me well, as I have been in direct communication with them since the beginning, in 2002.
They are part of the darTZeel family, they trust me, they know that the darTZeel brand will continue to exist for a long time. Thank you to them!
As of today, at the moment I am writing these lines, due to their increasing rarity, darTZeel instruments are gaining value.

Those who do not own darTZeel instruments can easily afford to make negative comments, whether about the prices, the sound quality, or my ability to offer something different in terms of musical reproduction, because they have never listened to them, seen them, or touched them long enough to understand. In my turn, I can understand that.
Please do not think that my words are pretentious or condescending, as this is not the case.
This is indeed true for any other brand on the market, as each one deserves attention, and if audiophiles buy them, it’s because they are worth it.
Criticizing without knowledge, slandering without proof, spreading false rumors, scheming to distort reality - these are the weapons used by cowards to achieve their goals.
Anyone reading these lines can contact me directly at rehve@dartzeel.com, and I will personally respond, with no bot replying on my behalf.

A small clarification for those who don’t know…
Here in Geneva, the official language is not German but French.

If what has been posted here is not clear enough, I’m sorry, but I will not say more.
Log in regularly to our website and follow the progression that our paradigm shift will bring.

Let the music play!
Hervé Delétraz

Dear Herve !

Good to hear from you and hope all is well !

darTZeel has always been my favorite company and only a few days ago I thought of purchasing the pair of perhaps the best amplifiers ever produced - The NHB-468 model.

I promise you that the rumors will not affect my decision !

Oren

 

[darTZeel]

After reading what Hervé said, I still don’t have meaningful answers to the key questions that are naturally raised in such circumstances:
• There is a claim that legal proceedings have been ongoing for a couple of months against the company, and it’s suggested that the company could go bust in a few weeks if the demands aren’t met. Is this true or not?
• From a management liability perspective, another important question arises: is Dartzeel solvent? In other words, can the company meet its short- and long-term liabilities? Hopefully you do understand these questions can have personal legal consequences.
• You mentioned that production has been halted for all products in the current line. I sincerely hope all existing orders have been fulfilled and that there’s enough cash for the company to survive this “paradigm shift.” Have they? There was a claim in this thread about some paid orders not fullfiled in Asia. Since the company announced new anniversary products at the end of June, some customers may have committed to these. Hopefully, the legal proceedings hadn’t started by then, as this could be seen as suspicious, like someone trying to boost short-term cash flow to extend the company’s life for a few more months.
• If production has stopped, does the company have enough parts in stock to service existing products for years to come? From past interviews, it was clear that many components are outsourced.
• If the company doesn’t survive this paradigm shift (which could happen if the information about legal proceedings is true), who owns the intellectual property (brand, schemes etc) and assets (tools etc)? If the company owns them, it could be that Dartzeel continues without Hervé with a new owner. Which I certainly would not like to see.
I won’t go on, as I don’t want to come across as attacking Hervé. No, I think we’re all waiting, almost begging him to clarify the situation. I have not seen any attacks on him or Dartzeel. I believe this community deserves better answers than the ones we’ve been given so far. And please Hervé, if Roy is spreading false claims, deny them. It is very simple if not true.

Mr. Gregory is spreading false claims. I do not know why.
It is extremely damageable. Not only for me, but for his own credibility.

 

[darTZeel]

Dear Herve !

Good to hear from you and hope all is well !

darTZeel has always been my favorite company and only a few days ago I thought of purchasing the pair of perhaps the best amplifiers ever produced - The NHB-468 model.

I promise you that the rumors will not affect my decision !

Oren

Thank you, Oren!

 

[Tbzc]

outsourced.
• If the company doesn’t survive this paradigm shift (which could happen if the information about legal proceedings is true)

. This is not true
. There is no pending liability
. There is no pending order not being delivered
. I have enough part in stock for servicing. And I can produce others if needed. I remind you that am the darTZeel founder, designer and creator
. I, Hervé Delétraz, own all intellectual properties, trade marks and patents
I never said that this community attacked me. The attack is coming from a single individual. No need to name him.
I highly respect this community, this is the reason I just registered to give explanations.
However I find a bit strange that I have to justify my integrity while the attack is coming from somebody who's telling lies and nobody ask him to justify. I think now it's time to put him onto the grill, don't you think?

Dear Hervé,

Thank you. This isn’t about putting you on the spot, but about providing clear answers. I’ve been trying to help you do this because it’s the only way to stop the false rumors. It’s unfortunate that it took three days to address these concerns. So far, you haven’t outright denied some very specific accusations, and I’m glad to hear this isn’t the case. Best of luck in resolving these issues and finding a new path forward!

 

[benito]

It’s unfortunate that it took three days to address these concerns.

Do you think that everybody read or must read "What's Best Forum," ?

 

[facten]

However I find a bit strange that I have to justify my integrity while the attack is coming from somebody who's telling lies and nobody ask him to justify. I think now it's time to put him onto the grill, don't you think?

Actually if you read the posts he has been asked by both me and Lee to produce documentation of the alleged legal proceedings that he referenced in one of his posts as if it exists that would presumably shed light on the reality of the situation.

 

[Tbzc]

Do you think that everybody read or must read "What's Best Forum," ?

And your point is?

 

[benito]

And your point is?

I believe that you think that Hervé must read WBF and quickly respond.

 

[Tbzc]

I believe that you think that Hervé must read WBF and quickly respond.

The original source of the rumor was a post by Roy on WBF. It then spread across other sites and YouTube, causing a lot of trouble for Hervé. I believe he quickly became aware of it. While not everyone follows WBF, in this particular case, I’m confident Hervé found out about it very quickly. And his quick response is very much in his own best interest.

 

[buzzlulu]

I find a bit strange that I have to justify my integrity while the attack is coming from somebody who's telling lies and nobody ask him to justify. I think now it's time to put him onto the grill, don't you think?

Mr. Gregory is spreading false claims. I do not know why.
It is extremely damageable. Not only for me, but for his own credibility.

Agree wholeheartedly
The lack of transparency and conflict of interest involving both Mr. Gregory and his wife is beyond the pale. Why is no one taking him to task and asking for public statements and explanations - just as they are asking of Herve'?
There is a definite double standard going on here.

After learning about these conflicts of interest I believe Mr Gregory would be well served participating in this thread and replying to some questions as well. Just saying.....

 

[Tbzc]

I also agree with this. While it is certainly about his conflict of interest, which he has been quite clear about, it’s more about the spreading of false claims. He should definitely provide more evidence to support his assertions; otherwise, his credibility and reputation will be at risk. And also possible legal claims.

 

[hogen]

Did you not read his initial statement?
Whether you choose to believe it or not is something else.
Do not accuse the man of not replying

Not only will the darTZeel brand continue to exist, but it will also change its paradigm by focusing on new concepts, which for now will remain undisclosed for obvious reasons.
What you need to know now are the following:
1. darTZeel is more alive than ever, and legendary customer service remains unchanged.
2. Current production of the NHB, CTH, and LHC series will now be made only on demand.
For existing customers: It is strongly advised not to sell off your darTZeel equipment on AudiogoN or elsewhere, because from now on, owning a darTZeel instrument is an investment.
3. A new line of instruments, aimed at a broader audience, is currently under study. Stay tuned!
darTZeel instruments are made in Geneva to last forever. Period.

The problem is maybe that this statement has no financial content, not even an attempt of proof of the company's economical status.