Whither Audio Research

[Bill Hart]

This subject is wearing on me and this comment may be a sign of that but at the end of the day there is no evolution, no advancement of the state of the art to be had with tube amps. There is little left after gimmicks, convenience, and reliability. "Whither Audio Research" is a very clever title but can just as aptly used with "Whither Conrad-Johnson" or "Whither Manley Labs" (which credit to EveAnna does not mess with proven designs and does not play the "SE" and successive number game) or "Whither Lamm" or "Whither BAT" game. I say all this as someone who always longed for ARC and eventually, and with little regret, went all-in with ARC. I have little regret too.
Amps do sound different from one another and no perfect amp exists. I always think of Charley Hansen who only towards the end of his far-too-short life discovered that tubes do offer a magic not normally achieved with SS gear.
Like it or not this hobby of ours has a commercial industry side to it and like it or not the commercial side thrives on selling what is largely slight of hand, perception-over-reality, sell the sizzle and not the steak illusions. And.....the audio press is all too happy to dispense the news of the illusion like so many doctors selling what the pharmaceutical rep pushes.
I sense a wave toward solid state gear like CH Precision, DaRTzeel, Pilium and similar capturing the confidence game that is part and parcel of so-called critical listening over the next 6-10 years. I sense this just from going to shows and reading the press. There are many factors involved including perceived technological advances combined with ease of maintenance. As the audiophiles with money to spend slide over to a previous segment of aging demographics there are less and less inclined to believe in the "magic of tubes" or to be willing to spend time with equipment failure or maintenance.
I suspect Ralph Karsten saw this coming when he decided to advance Class D gear and he is not alone.
So yes, the much vaunted Audio Research Corporation has faced a perfect storm of adverse elements-inflation, supply chain issues, lower priced competition, a market shift away from tubed gear, and dare I say it, less consumer based adoption of the magic myth and mystery (alliteration intended) in tubes.

I certainly won't argue about how you feel- that would be presumptuous in the extreme. Ironically, it was ARC that pointed the way originally b/c the "advances" at the time weren't really.
Maybe now they are- I'll confess to not having heard much of the newish solid state or Class D, so I'm not going to challenge that either. But who is to say that even a big company can't withdraw from the market? And most of the high end is, as far as I know, more cottage industry than big industry.
I know my beloved Lamm ML2 was not more technologically advanced- but it imparts something special I still enjoy (and of course, Vlad Lamm's passing has had a real impact on that company).
True NIB, NOS tubes are harder to find than ever. It's almost masochistic in some ways, I guess.
Punchline: I "feel ya" as they say in some parts. Something like this sends waves through the industry even if one doesn't own ARC gear.
Respectfully,
Bill

 

[gleeds]

Bill, et, al. Yes, it is indeed sad to have a legendary brand pass from the scene. GM-70 tubes are pretty scarce these days so I feel you regarding keeping the Lamm's humming.

There are newer companies that bring innovation and tons of tube magic and deserve our support. I also feel solid state has advanced to a level that may cause tube amplifier lovers to consider SS alternatives. My view has always been a great tube pre-amplifier can bring much of the magic and often pairs beautifully with better SS designs.

A few examples of tube amplifier innovators doing some pretty interesting work.
Trafomatic
Aires Cerat
Alieno

With examples like these and many more in the works I remain optimistic about our small industries future. You cannot kill the passion for sound reproduction that lives within designers with the guts and determination to build limited production, high-end audio for us all to enjoy. We are in a new golden age of performance audio and have much to look forward to ahead.

 

[Another Johnson]

You fellows who are holding the wake for ARC must have interpreted the post on page 2 by Commish differently than I did.

It is too early for the wake. Let the new buyer step out of the offing and give them a chance. You can trot out the obituary later if it’s needed.

 

[Whbgarrett]

I think he means 1% of the audiophile community.
I wonder if Clearence Thomas 'patrons would buy him a Wilson WAMM?

LMAO

 

[Bill Hart]

You fellows who are holding the wake for ARC must have interpreted the post on page 2 by Commish differently than I did.

It is too early for the wake. Let the new buyer step out of the offing and give them a chance. You can trot out the obituary later if it’s needed.

Fair comment.

 

[Big Dog RJ]

No tears for ARC shed by me!

What a pathetic statement to make. Ah... some people
Hope you feel better, get well soon.
Best, RJ

 

[Big Dog RJ]

JasonBourne is active on the audio-gear-seller site and he espouses nonsense over there dominated by negative snark towards anything that does not measure well or meet his affordability requirements. It's like the spread of an invasive species.

The Bourne identity... this goose actually tarnishes the real Jason Bourne! That was a true crime, drama plus thriller classic! Also goes to show that you can't trust anyone once you've signed up in this game.

As far as ARC is concerned, their back-end is still running: production, testing, packing and processing orders for shipment, plus tech support and after sales service. It's only their front-end that requires new leadership/ ownership, once that's sorted out, business as usual.

ARC is such a huge American icon, it's far too valuable to ignore or not want it to sustain. ARC started up quite a few others companies, like Magnepan, they were really able to take off with ARC's help. Bill Johnson is a legend and so was his trusted team of audio engineers. It's what they stand for- Audio Research!

I'm sure they'll sort it out, not to worry maties. If not, I'll buy the company!
Until then, do enjoy those fine tunes on that fine tube gear.
Woof! RJ

 

[Pacha]

I read this with some sadness and hope. I've been an ARC customer since the late 70s and have owned many of their wonderful products including my current system. I have always found their customer service excellent, affording me, the client, with the best outcomes. I wish them the best in resolving this situation and continued success with future products and sales.

 

[Dave Gordon]

I would not be too quick too write-off Audio Research. They have bounced around with different owners, some coming froma background, some perhaps not quite a good fit. McIntosh was a direct competitor. They have had outside people and impositions put upon them as a result of that -- management decisions no longer came out of Maple Grove, outward facing design came out of Italy. TWS LLC was created by former sales director Trent Suggs to return the company to in-house ownership but Suggs had no financial backing behind him But ARC continues with a core group. I expect them to survive. As a previous owner of multiple ARC products over the last two decades I see no reason, apart from business managment, they cannot hook-up with a financier who will let ARC be ARC.

Having been with ARC since WZJ's ownership, it has been an interesting ride. We were happy that Bill sold to Fine Sounds (in 2008 when he was 81), which owned Sonus faber and no other audio companies at the time. FS understood exactly what made ARC special, invested in the company (engineering, infrastructure), and ARC grew.
After other companies joined the fold (Sumiko, Wadia, McIntosh) and new group management took the reins, ARC was no longer the apple of their eye (the group's name changed from Fine Sounds to the McIntosh Group), and the support deteriorated. By 2020 it was time for new ownership. Enter Trent, who loved and had wanted to own ARC one day.
Purchasing a company can be like buying your dream home; knowing what to expect and being prepared for it is a lot easier if you have owned a couple of homes previously. The roof can leak, or you might need a new furnace, and you need to be prepared for that. The house is still standing, it has good bones, which is a good thing for everyone who cares.

 

[Big Dog RJ]

This is not a phenomenon of ARC alone. It can happen to any company, especially highend audio brands. How many have come and gone... and those other ones who've been taken over by large corps who know diddly squat about audio, let alone the highend. Quad ESL's take over by IAG is one plum example.

This could be a true wake up call for many others, so I wouldn't be surprised to see VTL, Manley Labs, Jadis, VAC and even CJ further lessening their product lines. Just focus on the top tier gear and do it well, harness reasonable profit margins and production is secure for a while longer... I think that's the safest bet. Unless you were huge like, McIntosh or Dali, they sell across to the widest regions of the globe, including the Nth pole. Eskimo Joe is enjoying those big Mac's with blue meters and keeping warm to some fine tunes!

Cheers to that fine tube gear, whichever brand you own.
RJ

 

[Gregadd]

I think Mcintosh has changed hands a few times.
It reminds of what a plastic surgeon said. He went to medical school so he could fix clef palates, hair lips and rebuild the faces of teenage girl car accident victims. But to stay in business he has got to suck a lot of fat and inject a lot of Botox.

 

[Big Dog RJ]

I was just going through Trent Suggs history and his passion for the company and the brand itself. Seems like he was a great chap. Always put his "associates" first, never referred to his staff as employees. He believed in relationship management, something that I'm very very passionate about and it's the soul of key account management! I did my Masters degree in the damn thing!

So what on earth did Trent do so badly to cause ARC in a financial pickle? There's always two sides of the story... I'll be very intrigued to hear his side directly from him of course. He must be feeling awful, especially after they've given him the flick, damn... something else must have caused this financial strife. Surely, a person with such genuine intentions, he loved the company! He won't want to run down the place... let alone set fire to it. In which case then you must hate the company or the place you work at (I've felt like this many times working for those corporate greeds in several past jobs...)

In Trent Suggs case he was really genuine and who really cared for the brand. What on earth went went wrong ..
Interesting times ahead for ARC, I truly hope they find the right person or company to take over.

Cheers to ARC!
RJ

 

[Lee]

You fellows who are holding the wake for ARC must have interpreted the post on page 2 by Commish differently than I did.

It is too early for the wake. Let the new buyer step out of the offing and give them a chance. You can trot out the obituary later if it’s needed.

+1 million

 

[Gregadd]

For me ARC died a long time ago.

 

[Another Johnson]

For me ARC died a long time ago.

And this adds???

@Big Dog RJ, I think it was just a casualty of the current monetary policy. Debt service has increased dramatically due to rising interest rates in the last six months.

I’m not willing to participate in the wake yet. My heart goes out to those who are living with the uncertainty at Maple Grove. My heart goes out to TS and his family.

I’m willing to wait before starting the autopsy. There may be clarifications at the next court date (5/17, Syttende Mai in Minnesotan).

 

[Gregadd]

I think in death ARC could be like a rock star. there existing products could increase in value.
Let's face it. When was the last time ARC released a must have product?

 

[Another Johnson]

I think in death ARC could be like a rock star. there existing products could increase in value.
Let's face it. When was the last time ARC released a must have product?

In my case, all four products I currently own were on the level of “must have.”

I’m sure there are many great alternatives… but ARC are special to my ears. I must hear like Warren Gehl.

I accept that ARC is dead to you.
I think it is sad that people talk about the patient in the patient’s presence. The patient isn’t dead yet. There does appear to be a course of treatment that may lead to full recovery.

ARC started the modern era of evaluating gear by how it actually sounded in your home. It is worth rooting for their survival.

 

[Nathanu]

I have been monitoring the case file. There were several filings yesterday, most notably including an updated list of creditors and a brief in support of the receiver’s motion to extend the court ordered stay (which creates a status quo to block collection efforts by creditors, among other things) and to approve the continuing appointment of the receiver. The current stay order expires on June 3, 2023; the motion asks for an extension to August 3, 2023. At this early stage, I would not expect the motion to be controversial

The following statements in the brief are of particular interest:

• “While the company can still be profitable, Audio Research faced financial hardships resulting from market changes due in part to Covid, which unfortunately occurred at a time during which Audio Research had sought to expand and develop a new product line. The timing of the market slow down at a time of increasing costs and leverage rendered the company unable to pay debts to creditors as they became due.” I had speculated in an earlier post that the I/50 did not work out for the company; sadly this seems to be correct.
• Audio Research has a secured loan payable to Minnesota Bank & Trust (the “Bank”) which holds a security interest in substantially all assets of the company which was perfected by the filing of a financing statement on December 29, 2021. The secured obligation to the Bank is approximately $1,600,000. In addition, Audio Research has unsecured current liabilities of at least $1,000,000.”
• “To Assignee’s current knowledge, all payroll and sales taxes are current, and all employee wages and benefits are current.”

I suspect that the receiver is working cooperatively with the secured creditor, Minnesota Bank & Trust, to identify and find the right buyer. In the meantime, based on the fact that “all payroll and sales taxes are current, and all employee wages and benefits are current”, either the company is still cash flowing from operations, the Bank is still allowing draws on the company’s line of credit, or both. The Bank would not likely fund draws on the line if the company was not cash flowing. Therefore, for now it seems that it is business as usual except that unsecured creditors will most likely be selling goods or providing services on a cash only basis only.

Please note that I am merely speculating based on clues from the court filings.

 

[Gregadd]

To be clear I was not referring to insolvency but the quality or products. For example, Marantz survived.
I hope they return to their glory days. There certainly are enough hedge funds and private equity firms to bail them out.

 

[Another Johnson]

To be clear I was not referring to insolvency but the quality or products. For example, Marantz survived.
I hope they return to their glory days. There certainly are enough hedge funds and private equity firms to bail them out.

A Marantz style survival would be better than disappearance, but it would be a hollow survival. It would be like Honda saving Harley Davidson.

Marantz’s current status might please Saul, but I don’t think it would. Ken Ishiwata’s spirit is not at peace with it either.

And there have been some post Saul Marantz products that have also been “must have” for me. In fact, I think Marantz provides the mechanical transport for my McIntosh MCT500.