Premium Audio Says Onkyo Japan Bankruptcy Filing Doesn't Include Its Assets

Onkyo Home Entertainment’s bankruptcy filing Friday with the Osaka District Court in Japan didn't include assets bought by Premium Audio Co. and Sharp in September (see 2109090028), said Voxx International subsidiary PAC Monday, responding to what it called misleading media reports. The PAC-Sharp joint venture acquired the Onkyo and Integra brands, including all intellectual property, and took responsibility for product development, engineering, sales, marketing and distribution of Onkyo's home entertainment business, PAC said. The joint venture also assumed all manufacturing of those products, including stereo receivers, amplifiers and hi-fi components under the Onkyo and Integra brands. PAC, through its 11 Trading Co. (11TC) subsidiary, began as a distributor of the Onkyo, Integra, Pioneer and Pioneer Elite brands in July 2020. In April 2021, 11TC became the exclusive U.S. distributor of the Teac and Esoteric audio brands, and in September, PAC, through its joint venture with Sharp, acquired the Onkyo and Integra brands, and established a licensing and distribution agreement with Pioneer, it said. Sales of the branded products are all through 11TC, which grew from $13.7 million in revenue in fiscal 2021 to $59.4 million in fiscal 2022, said PAC CEO Paul Jacobs. He said demand for Onkyo and Integra products has been “very high” and expected to “intensify in the coming years.” PAC has been working with Sharp to ramp up production and has grown the business since the acquisition, he said. “We have big plans for Onkyo and the other brands sold through 11TC and as we build production and expand distribution, believe sales will more than double in the near-term,” Jacobs said: "Rumors or any statements to the contrary about the Onkyo brand are simply unfounded and misleading." During the COVID-19 supply chain shortage, Integra receivers were particularly hard hit by supply shortages, dealers told us in April (see 2204060057).