2024-04-22 20:08:00
Vladimir Chijevski
Liquid cooling company EKWB is having difficulty meeting its financial obligations, according to former and current employees. At the same time, the company’s warehouses are overflowing with unclaimed products.
Image source: EK Cooling
Slovenian developer and manufacturer of cooling systems EKWB is facing a series of accusations of non-fulfillment of contracts. The company’s employees and partners complain of several months of payment delays and flaws in its strategy which have led to the current situation. Investigation of the situation I have been busy Gamer’s Nexus YouTube channel.
The root of the problem appears to lie in the excessive breadth of the EKWB range, consisting of 230 water blocks, 40 liquid cooling kits, 85 reservoirs, 40 pumps, 73 radiators and 212 accessories. The company does not have its own production facilities and places orders from contract manufacturers. However, they impose minimum supply volumes, while components for liquid cooling systems are far from the most popular product. As noted in a survey conducted by Gamer’s Nexus, EKWB sales have dropped recently and some expensive and specific products are being sold in one-time quantities.
All this led to the accumulation of unsold and sometimes even illiquid expensive products in EKWB’s warehouses. As a result, EKWB began having difficulty paying for fulfilled production orders, accumulating five-figure debts, and suppliers began working with it exclusively on an advance payment basis.
At the same time, the company’s employees began to complain regarding delays in the payment of salaries. Gamer’s Nexus cites extensive evidence of salaries and commissions delayed by three to four months and delayed pay raise promises that have been piling up for nearly a year.
Due to the company’s financial difficulties, the internal climate was seriously affected. For example, EKWB’s headquarters and the company’s U.S. branch became mired in petty squabbles, trying to accuse each other of theft. At one point, the parent company even closed its warehouse and office in Texas, something its employees only discovered when they arrived at work.
However, according to a report from Gamer’s Nexus, EKWB is trying to find a way out of the situation and pay off accumulated debts. The company sells liquid hardware, including EK Fluid Works and EK Fluid Gaming computers, and is also seeking buyers for some of its real estate. Additionally, EKWB will participate in Computex 2024, where it hopes to attract attention to its products and establish new sales channels.
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