Krell Moves to new location

@srace1 said:

The case citation from jea48 is from 15 years ago and while it shows a litigious past for Krell, it has no bearing on the current situation.

@srace1 did you by chance read any of the other Links I provided?

I am not a Lawyer but as a layman, jmho, Dan and Rondi D’agostino sold Krell Audio to KP Capital Partners in 2009. Thus the new name Krell Enterprises LLC.

Imo, I believe, somewhere in the chain of events over the years JB Bicking & Co. acquired Krell enterprises from KP Capital Partners . Don’t know that for sure...

JB Bicking & Co.

Wil Buhler

Experienced Chief Executive Officer with a demonstrated history of working in the management consulting industry, and venture capital. Currently run a Holdings company specializing in startups and industry disruptor companies. Takes a hands-on approach with the companies we manage and partner with.

Proof? I didn’t dig deep enough. But reading this...

Q -When can we expect Krell to reopen? And upon reopening, when can staff be expected to return to the factory to resume work?

"WE" technically never closed just our facility, "we’ve tried" as best as possible to make "Ourselves" available via "our Firm" and email. 610 894 0692 or Service@krell.industries. Here’s the less annoying part of my answer.

As an attempt at full transparency after much delay due to the courts insistence on a particular family member’s involvement in the matter, approximately 3 weeks ago the courts gave us permission to proceed ahead with the probate process without the individual.

Note:

"WE" , we’ve tried , Ourselves , our Firm.

As an advisor to Krell industries would those be the words you would use? To me they show ownership, jmo...

As an attempt at full transparency after much delay due to the courts insistence on a particular family member’s involvement in the matter, approximately 3 weeks ago the courts gave us permission to proceed ahead with the probate process without the individual.

JMHO, just a guess, the family member does not have any claim to Krell Industries.

As of three weeks ago the court is proceeding with the Probate proceedings.

Not sure what you think Mr. Buhler can do at this point. I assume, He got their lawyer’s to argue to the judge the family member does not have a valid claim.

Now you just gotta wait for the Judge... Note, Mr. Buhler didn’t say the judge lifted the asset lock down of the company assets, and no doubt records... Like the one(s) for your amp(s)... If the Judge did I would think Mr. Buhler would have mentioned that. ,Don’t you?

Jmho, Mr Buhler wants, just as much as you do, to get Krell Enterprises up an running again. Time is money...

.

Reading this thread is sad for me.  There have been so many missed opportunities to support brand goodwill by simple communications.

Can such destruction of value be deliberate?  For the experienced legal minds among us, I ask Which parties benefit from having a lower valuation for Krell assets?  If the value of Krell goes to zero, who avoids inheritance tax or . . . ?

Jea48 I didn’t wanna make the communication on this form very personal since I didn’t want to come off as any sort of know at all. However, perhaps some of my work background will be appropriate and give some perspective on why I have made the comments i have. I ran a number of large consumer products companies earlier in my career. I tired of that and then did turnarounds for private equity and venture capital portfolio companies for over a decade. Subsequent to that I started a hedge fund focused on small ( under $1B market cap) public companies in some stage of turnaround. I took a number of client companies through bankruptcy. I have a pretty good idea of the situation if not the specifics facing Krell and Buhler. 
 

As I have outlined, there is much to be desired with the communication from Bicking. I realize Krell and Bicking are both private companies and won’t have the disclosure  mandates of public companies.. What I am about to write is based on some level of conviction of the situation at Krell despite a lack of knowledge of the facts. I have researched Bicking and there is no indication that they hold an equity position in Krell or any other company. They are strictly an advisory firm and as such they are likely trying to turnaround Krell. It is unclear who hired them or for that matter who they report to. I agree it is curious that Buhler used terms like “we” or “our firm” when referencing Krell but you need to understand I suspect he is the management of the company at this point probably largely through default. Again a suspicion on my part, but this has been going on so long that personnel has dispersed and he is of the last men standing at the company. While perhaps a bit sloppy, Buhler’s note to this forum was casual and not official so the terms he used are understandable. Nevertheless he has missed some self imposed deadlines for communication on the situation. Also while not mandated, in a situation of a consumer products company communication with “stakeholders” becomes paramount in preserving brand equity. 
 
While I am not at the point of suggesting Krell is a failed company it certainly would meet my definition of being in the “zone of insolvency”. I am not a lawyer either, but I have worked clients through the bankruptcy courts, and when a company finds itself in that situation the people running the company need to take care of the debtors first and the equity holders second. Basically they need to run the company so that debtors get their money or in my case my property back. Frankly anyone who has equipment in at Krell for repair, warranty or upgrade is supposed to get their equipment back since it isn’t part of the Krell estate. 
 

I don’t want to speculate on outcomes but even if Bicking is an equity holder in the company at this point I SUSPECT their focus to shift from protecting the equity holders interests to protecting the debtors interests. I agree this whole situation is odd and it appears Buhler has had a relationship with Krell for sometime. Given the financial trials and tribulations I am not surprised Bicking has had a relationship with the company for sometime. However based on what I have seen and on some likely assumptions, the nature of their advisory services  has probably changed over time.  Unfortunately not much we can do other than rely on the better Angels doing the turnaround.

@jwei 

You asked "For the experienced legal minds among us, I ask Which parties benefit"?

My answer: Lawyers and liquidators.

Srace1 can probably chime in here, but if memory serves, the order of payoff when a company is dissolved is:

1. Back pay for former employees. This is a matter of state, not Federal, law, and state attorneys pursue this matter on behalf of the employees. Some states (like California) are quite aggressive on behalf of former employees, others aren’t.

2. Federal, then state, then local taxes, in that order. Pursued by the IRS and state attorneys.

3. Banks, then other stakeholders, including customers with equipment in for repair. Owners of equipment in for repair might pursue a class action lawsuit; this is easy in some states, and quite difficult in others. Depends on state law. And yes, the reason class action lawsuits are rare is that lawsuits are often (much) more expensive than any potential gain. It’s the duty of an ethical lawyer to warn their clients of the potential costs of a lawsuit.

4. Bond and stock holders are paid last. The value is usually zero at this point.