Onkyo files for bankruptcy
The Hi-Fi company, which has been operating since 1946, has reportedly filed for bankruptcy at Osaka District Court on Friday, with total liabilities of around JPY 3.1 billion (USD 24 million).
The company has been unable to navigate the rapid changes in how people consume media and music, as users shift from the company's core products such as compact stereo systems to more mobile devices such as smartphones for streaming, the Nikkei reports. The company was delisted back in August 2021.
The company's subsidiaries that took care of the original equipment manufacturing – ergo assembling speakers for other brands – as well as sales of audio equipment filed for voluntary bankruptcy in March.
The company told Nikkei that it tried to maintain business on a smaller scale, "but could not stop cash-flow problems from worsening." The company continued to say that it has explored every possible way to continue the business – but that it has been unable to pay off its debts.