Their website is down and there is a notice of meeting of creditors. I think it’s really sad that a U.K. business with such an emphasis on quality has gone under. From what I’ve heard they tried to expand into speaker cabinet work but it cost a great deal especially in these more difficult financial times and they struggled to follow through with the level of quality needed.
(I’m not sure if here or hifi corner was the best place to put this and I’m sorry if there is already a post on this somewhere I did a search and didn’t find anything)
I would suspect that the HiFi sector in general is currently in big trouble. It is way too inflated for what it is. Sign of the times. Even the used markets are stagnating from what i’m seeing recently.
Hopefully it’s simply a price correction, I agree affordability for much of the population for higher performing hifi has got out of step with reality other than for niche.
The very high end seems to not be in trouble. Hifi racks are not enough high end maybe and quite expensive for their build.
Critical mass, HRS, seem to be well sold, if I refer to Hifi shows.
But I am only speculating.
I was speaking to a dealer earlier, they are defo. not finding it easy just now. It’s the ‘bread and butter’ end of the market where the £ profit per item is moderate but the number of sales has shrunk from many to few that is biting apparently.
What, within the hifi industry?
My point is for the majority many hifi products become unaffordable. That will drive a price correction. Tesla luxury electric cars is an interesting case study to follow. Sure there is always a super wealthy minority that can afford what ever. In the UK for example wealth inequality has been in long term decline since 1900, but has been roughly constant since 2000, greater than a marked drop in inequality around mid 1980s to 1990 but a lot more equal than in the 1900s… however the UK is still one of the more unequal countries in terms of income in the developed world, with the US, China, Israel, India and Italy being more unequal, but in terms of wealth distribution we are roughly average across the OECD
If so; they will need some price correction. Most of it is in entertainment/performance terms. Back in the day where wealth distribution was more widespread, one could get away with it…
Sure, but greater wealth distribution was between the late 70s and late 80s… other than it’s been pretty consistent since 2000. I think the change in the hifi market pricing has been noticeable since 2000 where wealth distribution apart from extreme minorities has more or less been consistent.
Interesting in the US the stats show for general audio equipment there has been a -2.7% inflation per year between 1977 and 2024… which makes the hifi rise appear more marked.
While things are undoubtedly less unequal than the 1900s, and doubtless better than in Roman times, the scandal is that things have got much more unequal since 1980, and we all know what happened the year before that. Whatever, it’s an unnecessary diversion from the original topic. I can’t say I was a massive fan of Hifi Racks’ system supports but they were clearly popular and it’s always regrettable when a small business is forced to shut down.
Increasing use of the one box solution won’t help hifi rack manufacturers I fear. Not sure who hifi racks are/were but it’s a shame to see any decent business fail.
Actually I don’t think it’s a diversion at all, it’s an evolution of the observation of perhaps why a small and valued hifi business closed. The cost of quality or non mass produced hifi for many has become unaffordable during a time where wealth distribution has been reasonably consistent (since 2000) , therefore demand will reduce, and companies will fold… I hope there is a price correction for the sake of the business, otherwise we will, I suspect, see continued consolidation.
But between 1980 and 1990 wealth inequality was at its lowest for over the last 120 years in the UK… whether you want to politicise that or not I wasn’t as we don’t on this forum, just relaying the findings from the Inequality Trust.
I am just saddened that two firms that produced very good products that are definitely “keepers” in my book Witch Hat and HiFi Racks have gone out of business within eighteen months of each other
I also wonder if CV19 had an affect on the business cycle ?
Indeed, there is another tiny valued manufacturer that appears to be closing its doors, Something Sold stands. I understand it was a tiny business, the owner wanted to retire, and they either didn’t want to or couldn’t find anyone to carry the business on.
Regarding Covid, almost certainly there a disruption to the business cycle, and a very stressful time for many.
Folks there are new companies starting too, eg Lateral Audio started a few yrs ago selling beautiful stands. I’m surprised that I don’t see them on this forum yet.
Indeed - thanks for reminding us - I guess its harder to hear about these new entrants - but I will look up Lateral Audio, it appears my local retailer, Signals, stocks them.
in entertainment/performance terms. Back in the day where wealth distribution was more widespread, one could get away with it…