GN video on EK seemingly in financial difficulties

[HomerJ]

 

[SpyderTracks]

I saw this, it's unclear weather this damage was before the ex CEO was forced out, or down to the new management that's taken over. But EK have been around a long time, and were highly regarded for many years, so I tend to hold the Ex CEO in higher regard than these unknown new guys. I could be entirely wrong, perhaps the ex-ceo fell on difficult circumstances that made him resort to dodgy things to recuperate some losses.

There's something odd in the way the founding CEO was forced out, something very odd about that.

I have a feeling these new management figures are embezzling revenue. That's the only thing that makes sense.

These reports of manufacturing partners not having been paid 5 figure sums, Manufacturers aren't stupid, and credit lines for a company that's been around this long will be based on trust of previous orders, they don't give them by default and they're constantly reviewed. If non-payments have amounted to 5 figures, they must have been large orders and done recently, otherwise the manufacturers would have revoked their credit line.

Reneging on staff salaries though is quite frankly utterly criminal and with no communication either. That's always a sign of dodgy goings on.

It also sounds like Steve has a lot more information that he's not sharing at this time and is giving the management time to make amends to staff and partners. Steve always does this, he's extremely fair even if it's obvious they're scum.

 

[SpyderTracks]

Jay has offered his insight, it's worth a watch, he has personal experience also, if you know Jay, he has been one of the go to guys on YouTube since the early days for custom watercooled systems, and all his personal systems have majorly extreme custom loop setups, and he's had a partnership with EK in that respect for a long time, around 9 years.

He's saying his experiences started around 5 years ago, just before the pandemic hit.

Jay is owed 6 figures for the videos he's done for them, he cut contact with them earlier this year.

Be aware, he does swear in this and it's not bleeped like normal, think he wanted to get a point across.

 

[SpyderTracks]

I was interested in the founder after what Jay said, he's the one Jay was referring to as Eddie

From what I'm seeing, he was forced out of the American operations only but is still heading up the Slovenian operations

But my god, rather tone deaf update on his LinkedIn page 2 days ago:

"Reflecting on more than two decades of growth at EK, from our first product to our latest release this year, the journey has been nothing short of remarkable. I am proud of our evolution from humble beginnings to becoming pioneers who set industry standards. Here's to the past, present, and the limitless possibilities of the future."

Edvard König on LinkedIn: #ekwb #ek | 27 comments

Reflecting on more than two decades of growth at EK, from our first product to our latest release this year, the journey has been nothing short of remarkable… | 27 comments on LinkedIn

www.linkedin.com

It seems that Kat Silberstein was made the CEO of American Operations in 2019, which coincides with when Jay said his experience started going downhill, she's still showing as the active CEO of American branch

Yet again, extremely unusual activity on her LinkedIn, totally silent for months until 5 days ago when she's been added to the board on a software company called "MassLuminosity", I wouldn't be surprised if she publicly announces she's no longer CEO of EKWB within a matter of weeks:

Kat (Marquez) Silberstein - EKWB d.o.o. | LinkedIn

Seasoned professional with over 20+ years experience in high tech corporate, channel, and… · Experience: EKWB d.o.o. · Location: San Francisco Bay Area · 500+ connections on LinkedIn. View Kat (Marquez) Silberstein’s profile on LinkedIn, a professional community of 1 billion members.

www.linkedin.com

She confirmed 4 months ago that they'd be at CES, according to Jay a booth is 6 figures, and she hasn't said it with any reticence, she's very proudly promoted it. Again, extremely odd for a CEO who must have known of the issues at her company.

This suggests to me that the Slovenian Team, despite being run by the Founding CEO of the company have completely devolved from the US operations. It's all very strange.

I'm really interested to hear more. I don't think Steve has given us the full picture yet, think he has a lot more to go into.

 

[SpyderTracks]

Update from GN on YouTube

 

[SpyderTracks]

EK founder released a video

EK admits fault for financial issues facing employees and business partners: 'We are committed to fulfilling our financial obligations and regaining your trust'

EK's CEO and founder, Edvard König, has released a statement on the financial difficulties alleged by various reports over the previous five days.

www.pcgamer.com

 

[SpyderTracks]

And a public statement from Der8auer who is one of the worlds most respected overclockers, plus the founder of Thermal Grizzly which is again hugely respected

Points to note: When Der8auer does a partnership where he lends his name "Der8auer" to the product, he never charges for that which gives him freedom to back out if there are any issues. In this case he's pulled his partnership with EK as a result of what's come to light.

At 07:34 "Everything that Steve has published is only the tip of the iceberg".

 

[SpyderTracks]

So here it is, GN's update, just starting it now.

The word corruption looks interesting

I have a feeling these new management figures are embezzling revenue. That's the only thing that makes sense.

Was I right I wonder??? More will be revealed

And it seems they're directly calling out the US operations CEO:

It seems that Kat Silberstein was made the CEO of American Operations in 2019, which coincides with when Jay said his experience started going downhill, she's still showing as the active CEO of American branch

 

[HomerJ]

link for anyone interested and to add to @SpyderTracks above

 

[SpyderTracks]

Blimey, this is proper dodgy!

There will unquestionably be some arrests out of this, I'm afraid Kat doesn't stand a chance being in the US, I have no idea what the Slovenian corporate law approach is.

 

[HomerJ]

Blimey, this is proper dodgy!

There will unquestionably be some arrests out of this, I'm afraid Kat doesn't stand a chance being in the US, I have no idea what the Slovenian corporate law approach is.

not looking great

 

[SpyderTracks]

not looking great

It depends what those 3 main "partner" companies mean related to EK, if it turns out those are actually just branches of EK under dubious company filings, and there has been repetitive money funnelling between them over an extended period, and it turns out those companies have been doing their own business with money being fed back to EK or vice versa, then that's pretty serious implications.

But EK Solutions to EKWB is serious enough

 

[HomerJ]

It depends what those 3 main "partner" companies mean related to EK, if it turns out those are actually just branches of EK under dubious company filings, and there has been repetitive money funnelling between them over an extended period, and it turns out those companies have been doing their own business with money being fed back to EK or vice versa, then that's pretty serious implications

sounds about right from hearing what the lawler has to say

 

[SpyderTracks]

A personal interview with Eddie Konig, the main CEO by KitGuru

This seems to be just a blanket denial of each criticism.

It's also the timeline, the complaints about deterioration of general company operations goes back to 2019, which coincides with customers views that quality and relations started going downhill. This coincides with Edvard and Mateusz taking back ownership from Dan Henderson in 2018.

And again, why oh why off the back of all this did they stick to their guns in taking out a 6 figure show stall at Computex when they had such large outstanding debts.

Kit Guru also followed up with Dan Henderson shortly after the above interview for his take on Eddie's statements:

So there still seems to be a polar opposite viewpoint between Dan Henderson's and EKWB US staff's accounts and manufacturing partners, and the owner, Eddie's accounts. To me, Eddie's words still appear to be extremely empty gaslighting.

 

[HomerJ]

A personal interview with Eddie Konig, the main CEO by KitGuru

This seems to be just a blanket denial of each criticism.

It's also the timeline, the complaints about deterioration of general company operations goes back to 2019, which coincides with customers views that quality and relations started going downhill. This coincides with Edvard and Mateusz taking back ownership from Dan Henderson in 2018.

And again, why oh why off the back of all this did they stick to their guns in taking out a 6 figure show stall at Computex when they had such large outstanding debts.

Kit Guru also followed up with Dan Henderson shortly after the above interview for his take on Eddie's statements:

So there still seems to be a polar opposite viewpoint between Dan Henderson's and EKWB US staff's accounts and manufacturing partners, and the owner, Eddie's accounts. To me, Eddie's words still appear to be extremely empty gaslighting.

EK - it wasnt our fault and even if it was it wasnt

 

[TonyCarter]

Deny, lie & obfuscate as if your life depended on it.

 

[SpyderTracks]

Serious deep dive, GN have been investigating this for the last 5 months, this is well worth a watch

 

[SpyderTracks]

First part of this roundup is about EKs brand new 2023 tax filings. Skip to 4:00 in to miss the intro

Its the first real picture of how the company is doing in reality from a financial standpoint. But the shift from 2022 to 2023 is pretty telling!