Sad News: Meadowlark Audio

Hogg · « **on:** 11 Apr 2005, 02:20 pm »

I saw this clip on another board about Meadowlark. I hope their problems are temporary.

"Meadowlark Audio overdue on loans; owner can't be reached.
Brian Kelly Watertown Times Saturday April 9, 2005

THe status of a small manufacturer's operations in Watertown is uncertain after several local economic development officials have been unable to contact the company's owner. Meadowlark Audio, a maker of high-end residential speakers, has not made a payment on a loan through the Jefferson County Industrial Development Agency in three months and also has fallen behind in rent payments to its landlord, the Watertown Industrial Center Local Development Corp., according to James P. Fayle, executive director of both JCIDA and WICLCC. Mr. Fayle said Friday there also has been no evidence of production in about the past month and a half at M's facility ...

He said the agencies have been unable to contact the owner, Patrick McGinty, to discuss the status of its operations. "We have to start legal action", Mr. Fayle said. "we've done outreact to them and that has been unsuccessful. A phone message left at the business Friday was not returned.

Mr. Fayle said the company has about $27,000 due on its loan through JCIDA. HE said the business also has payments past due on loans made by the Watertown Local Development and North Country Alliance. Times recordss indicate the WLDC, also known aka the Watertown Trust, gave the business a $75,000 loan in June 2001 and the alliance provided a $68,000 loan that same year. Watertown Savings Bank matched the public agencies' loans.

Mr. Fayle said the three agencies hold a proportional second position to the bank on the manufacturer's equipment and inventory, which remained in the Startbuck Avenue building. If the equip. were to be sold, the bank would have first rights to the proceeds with the three public agencies splitting any remaining proceeds proportionately.

McGinty moved the business to Watertown from Vista, CA. At the time, Watertown officials were negotiating the move, it was reported in the Binghamton Press and Sun Bull. the McGinty planned to locate the business in a vacant building there. .... He said he planned to employ more than 2O people over time.

He committed to locate the business in Watertown in July 2001 and started operations in Nov. 2001. Local economic dev. agencies took a chance on lending money to Meadowlark despite a previous experience with another Ca. speaker company that defaulted on a JCIDA loan before leaving the Watertown Center for Business and Industry w/o telling the agencies. Von Schweikert Research moved to Watertown from Hesperia, CA in 1996 and made high-end speakers employing about 35 people until it ran into financial trouble and then suffered damage in a flood at the Starbuck Ave. building. It closed in 1998 when owner Albert Von Schwiekert left Watertown owing JCIDA more than $143,000."

Source: Watertown, NY Times

skrivis · « **Reply #1 on:** 11 Apr 2005, 03:09 pm »

Quote from: Hogg

I saw this clip on another board about Meadowlark. I hope their problems are temporary.

"Meadowlark Audio overdue on loans; owner can't be reached.
Brian Kelly Watertown Times Saturday April 9, 2005

THe status of a small manufacturer's operations in Watertown is uncertain after several local economic development officials have been unable to contact the company's owner. Meadowlark Audio, a maker of high-end residential speakers, has not made a payment on a loan through the Jefferson County Industria ...

It's a shame, but you'd think he would have returned their phone calls and such....

Kevin P · « **Reply #2 on:** 11 Apr 2005, 03:47 pm »

You know the quickest way to make $1,000,000 in the speaker business?

Start with $2,000,000 and operate your business for about 12 months.

Charles Calkins · « **Reply #3 on:** 11 Apr 2005, 04:04 pm »

Yo Kevin!

Buy high. Sell low. Or just give it away!!

Cheers
Charlie

P.S.
If it's true about Meadowlark I'm sad. Shame to see somebody devote their life to something and have to go out of business.

Panelhead · « **Reply #4 on:** 11 Apr 2005, 04:47 pm »

Quote from: Charles Calkins

Yo Kevin!

Buy high. Sell low. Or just give it away!!

Cheers
Charlie

P.S.
If it's true about Meadowlark I'm sad. Shame to see somebody devote their life to something and have to go out of business.

Sad to say, but this is where 80% of start ups end. The future of audio is and has been HT.
There are only a couple companies making money in 2 channel High End Audio. Most consumers buy the cheap 5 channel recievers.

George

Music Maven · « **Reply #5 on:** 11 Apr 2005, 04:56 pm »

I sure would never have seen this coming that a high end manufacturer of this status, well-established and generally well-regarded by audiophiles, would disappear.

This is the Catch-22 of esoteric audio: if one purchases a component from a mass-marketed "top 10" manufacturer, they will certainly be around, in one form or another, but there's no great thrill for many of us in buying "the production line stuff" and we know our money is going to huge advertising campaigns, huge staffs and overhead - so presumably less to the product itself.

On the other hand, in this crazy but addictive world of "underground" sound it seems one must be not only an audio connoisseur but a tea-leaf reader as well, to try and fathom whether the "darling of the moment" will be around in five years.

If the product from such a company never needs service, that's one thing, but reselling a product from a company that vaporizes means taking something of a loss on it, because most audiophiles prefer the confidence of purchasing a used product from a company that still exists.

Jerry

Kevin P · « **Reply #6 on:** 11 Apr 2005, 05:27 pm »

Quote from: Kevin P

You know the quickest way to make $1,000,000 in the speaker business?

Start with $2,000,000 and operate your business for about 12 months.

Someone PM'ed me saying this sounded like a 50% profit.

The better quote would be:

"How do you make a small fortune in the audio business? Start with a big fortune"...

Thanks PhilNYC!

Rick Craig · « **Reply #7 on:** 11 Apr 2005, 06:05 pm »

Quote from: Music Maven

I sure would never have seen this coming that a high end manufacturer of this status, well-established and generally well-regarded by audiophiles, would disappear.

This is the Catch-22 of esoteric audio: if one purchases a component from a mass-marketed "top 10" manufacturer, they will certainly be around, in one form or another, but there's no great thrill for many of us in buying "the production line stuff" and we know our money is going to huge advertising campaigns, huge staffs and overhead - so pres ...

Many (if not all) of their drivers are off-the-shelf parts so if repairs are needed it shouldn't be a problem.

rosconey · « **Reply #8 on:** 11 Apr 2005, 06:09 pm »

hmmmm -one hour away and my van is empty-wonder if they have any security-lol

KKM · « **Reply #9 on:** 11 Apr 2005, 06:47 pm »

Quote from: rosconey

hmmmm -one hour away and my van is empty-wonder if they have any security-lol

Rosconey,

You wouldn't happen to own a white van...?

Soundbitten · « **Reply #10 on:** 11 Apr 2005, 07:03 pm »

I had the fortunate opportunity to take a tour of the Meadowlark plant a few years ago . It was a first class operation with some state-of-the-art machinery . I saw the Osprey in it's developmental stages . Upon meeting Pat McGinty it was obvious he had a great passion for music and his speakers. I hope everything works out for him.

rosconey · « **Reply #11 on:** 11 Apr 2005, 07:33 pm »

actually it is white

bought used so had no choice of color

eric the red · « **Reply #12 on:** 11 Apr 2005, 10:36 pm »

Take soundbitten with you rosconey as he knows the layout of the plant.

bundee1 · « **Reply #13 on:** 11 Apr 2005, 11:04 pm »

I know I sound like a dick, but when is the liquidation sale?

hmen · « **Reply #14 on:** 11 Apr 2005, 11:36 pm »

Quote from: bundee1

I know I sound like a dick, but when is the liquidation sale?

It sounds like they had the liquidation without the sale.

RooX · « **Reply #15 on:** 12 Apr 2005, 12:17 am »

its interesting that they are in this predicament as they seemed to have been making great progress in updating and enhancing their product line over the last few years.. They brought on a few new models as well as updated all their old models to the new style. Nice looking speakers, very nice sound. One thing i also noticed is everytime i would talk about them with my dealer it seemed as though their prices had gone up again and again.

muralman1 · « **Reply #16 on:** 12 Apr 2005, 01:33 am »

It may seem sacrilegious here, but I feel more sorry for Watertown. I don't know about Meadowlark, but would hope Von Schweikert will pay them back. Yourtown USA is hurting. Manufacturing has taken a big hit. They can't afford to throw away those dollars. These small audio companies would never have gotten their sweetheart deal in, say, California.

gary · « **Reply #17 on:** 12 Apr 2005, 01:40 am »

It's one thing for a business to take business development loans and fail. Happens every day and it's part of capitalism. To leave town and skip out on debt is unforgiveable though. I for one will never consider buying speakers from a company that did that, I've steered several people towards VR-1s before but never again.

Gary

Shamrock Audio · « **Reply #18 on:** 12 Apr 2005, 02:09 am »

I don't know the Meadowlark folks and have no intent to throw rocks at them or anyone else. Nevertheless, I operated Shamrock Audio for 11-years full-time without ever borrowing a nickle from anyone. That may well have been the second best decision I ever made.

Brian Cheney · « **Reply #19 on:** 12 Apr 2005, 02:19 am »

28 fulltime years here, no debt, made in USA, still going strong!