EK is Imploding: Not Paying Employees, Partners, & Suppliers - Investigative Report
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Date: 2024-04-21
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Comments and reviews: 20
XionEternum
I'll be honest, I'm not surprised.
For almost a decade now I've seen this unsustainable rush to be the premium go-to for watercooling while getting undercut by other companies that are just as good if not better. Happened to Monsoon as well, but at least they didn't pull these illegal stunts just to stay afloat.
EKWB - You cannot sustain being the premium go-to by buying in bulk. If you want to be the premium, then you have to price like Gucci while choking on material costs. There is no middle of the road anymore. Nobody wants it. Most want the cheapest that looks decent. Only those with too much money and not enough sense to invest will buy the true premium brands; the hand-crafted stuff that someone with a CNC mill, and direct access to the parts being crafted for, and small-quantity material suppliers. Yes, this means your prices may have to go up two or three fold, but you have too much supply and not enough demand right now to do that. Your only hope to dig out of this - and you may need to refinance anyway - is to firesale your assets for liquidity to push back into true boutique premium made-to-order product. Let the rest fight for the scraps that low-margin-high-volume offers. And speaking frankly, you may also need to rebrand after doing so as well. The brand image is ruined now. Oh, and pay your staff and suppliers before you push that shift. Shouldn't need said, but... no trust.
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I'll be honest, I'm not surprised.
For almost a decade now I've seen this unsustainable rush to be the premium go-to for watercooling while getting undercut by other companies that are just as good if not better. Happened to Monsoon as well, but at least they didn't pull these illegal stunts just to stay afloat.
EKWB - You cannot sustain being the premium go-to by buying in bulk. If you want to be the premium, then you have to price like Gucci while choking on material costs. There is no middle of the road anymore. Nobody wants it. Most want the cheapest that looks decent. Only those with too much money and not enough sense to invest will buy the true premium brands; the hand-crafted stuff that someone with a CNC mill, and direct access to the parts being crafted for, and small-quantity material suppliers. Yes, this means your prices may have to go up two or three fold, but you have too much supply and not enough demand right now to do that. Your only hope to dig out of this - and you may need to refinance anyway - is to firesale your assets for liquidity to push back into true boutique premium made-to-order product. Let the rest fight for the scraps that low-margin-high-volume offers. And speaking frankly, you may also need to rebrand after doing so as well. The brand image is ruined now. Oh, and pay your staff and suppliers before you push that shift. Shouldn't need said, but... no trust.
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kajerlou
Before I graduated college (online school) I was a truck driver. I worked for several companies but, the worst was Western Express. My driver manager, and their fleet manage in-turn had a habit of remotely changing our e-logs if it didn't work to their convenience. This is highly illegal beyond merely being unethical. Aside from how this was done to make me work beyond my 11-14-70 rules along with the 10 hour breaks--between driving--they absolutely manipulated my logs to get out of providing money for things such as detention & layover pay. Luckily for me, heh, nearly every truck company is always, 100% absolutely desperate for drivers. So, I was able to get a new job at a slightly less bad company the same day I quit.
I imagine, that a lot of these niche factory workers, are probably not looking at such a wide open job market with a whole recruiting industry built around finding them like truckers have. It pains me to think about how for some of these people they must feel utterly trapped and obligated to persevere.
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Before I graduated college (online school) I was a truck driver. I worked for several companies but, the worst was Western Express. My driver manager, and their fleet manage in-turn had a habit of remotely changing our e-logs if it didn't work to their convenience. This is highly illegal beyond merely being unethical. Aside from how this was done to make me work beyond my 11-14-70 rules along with the 10 hour breaks--between driving--they absolutely manipulated my logs to get out of providing money for things such as detention & layover pay. Luckily for me, heh, nearly every truck company is always, 100% absolutely desperate for drivers. So, I was able to get a new job at a slightly less bad company the same day I quit.
I imagine, that a lot of these niche factory workers, are probably not looking at such a wide open job market with a whole recruiting industry built around finding them like truckers have. It pains me to think about how for some of these people they must feel utterly trapped and obligated to persevere.
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C-M-E
May the employees and contractors finally be granted solace when the opportunity to piss on EK's flaming tombstone presents itself, perhaps sooner than later.
I wish it still shocked me how many companies operate exactly like this, with employees and vendors held hostage as collateral. I can't imagine showing up to a job that treats you like that month after month and further insults your entire life by not paying you. WTAF...
Add: In the event anyone at GN sees this, since the law firm threatening 'enforcement of NDAs' I would think has committed them to 'engaging in the protection of reputations', I would enquire with them if that attorney has registered as a Foreign Agent under FARA, particularly if EK's HQ in Slovenia is footing the bill. If not, the DOJ would very much appreciate a tip off, which would set back that firm's legal abilities A Long Time.
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May the employees and contractors finally be granted solace when the opportunity to piss on EK's flaming tombstone presents itself, perhaps sooner than later.
I wish it still shocked me how many companies operate exactly like this, with employees and vendors held hostage as collateral. I can't imagine showing up to a job that treats you like that month after month and further insults your entire life by not paying you. WTAF...
Add: In the event anyone at GN sees this, since the law firm threatening 'enforcement of NDAs' I would think has committed them to 'engaging in the protection of reputations', I would enquire with them if that attorney has registered as a Foreign Agent under FARA, particularly if EK's HQ in Slovenia is footing the bill. If not, the DOJ would very much appreciate a tip off, which would set back that firm's legal abilities A Long Time.
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gamersnexus
Isn't this a classic try to go big move, they saw some form of a jump and make the niche market bigger than it really is, or a grp of investors demanding that they grow the company. I am not excusing the action of EK but it seems that companies today for some reason can't just be profitable but always seem to have to grow. Why can't companies just make due with what they have and not jumping head over heals to be HUGE. I know that the investors are to blame for that most of the time, it's just that i have seen so many companies just go down the drain because they grew to big and could not keep up. It's a shame really EK has always been the cream of the crop when it come to water cooling, ppl use to buy specific build's just to accommodate what EK had on offer.
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Isn't this a classic try to go big move, they saw some form of a jump and make the niche market bigger than it really is, or a grp of investors demanding that they grow the company. I am not excusing the action of EK but it seems that companies today for some reason can't just be profitable but always seem to have to grow. Why can't companies just make due with what they have and not jumping head over heals to be HUGE. I know that the investors are to blame for that most of the time, it's just that i have seen so many companies just go down the drain because they grew to big and could not keep up. It's a shame really EK has always been the cream of the crop when it come to water cooling, ppl use to buy specific build's just to accommodate what EK had on offer.
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kajerlou
When any company has investors, those companies are legally obligated to priotize their investor's interests over all else. I often muse over this, thinking what the end game for lots of corporate executives are. Eventually, you'll have cut expenses to the point of collapse with nothing left to cut, with new projects that promise growth to investors dangling off a dead stem constructed almost entirely by what will either literally or practically be temporary employees. Well, late stage capitalism, right You can only grow so far for so long in any given market, if only a company could settle down into their tidy profitable rut without being forced to grow for investors.
Not saying that's EK's case, just made me think about it.
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When any company has investors, those companies are legally obligated to priotize their investor's interests over all else. I often muse over this, thinking what the end game for lots of corporate executives are. Eventually, you'll have cut expenses to the point of collapse with nothing left to cut, with new projects that promise growth to investors dangling off a dead stem constructed almost entirely by what will either literally or practically be temporary employees. Well, late stage capitalism, right You can only grow so far for so long in any given market, if only a company could settle down into their tidy profitable rut without being forced to grow for investors.
Not saying that's EK's case, just made me think about it.
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erufenrito66
My dad runs his own business, servicing other businesses. Some places have taken a similar stance, by which I mean they take out a loan and choose not to pay for months at a time. I suggested my dad add a clause describing late payment fees. Lo and behold, the same asses who would constantly go months at a time without paying, kept doing it. When the new updated past-due invoice arrived, he got angry calls demanding an explanation. Simply read clause # on the contract YOU signed. it is right there.
He lost a few customer this way, but the majority stopped doing that shit right away.
I have a special breed of hate for companies that stiff their suppliers and/or employees this way.
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My dad runs his own business, servicing other businesses. Some places have taken a similar stance, by which I mean they take out a loan and choose not to pay for months at a time. I suggested my dad add a clause describing late payment fees. Lo and behold, the same asses who would constantly go months at a time without paying, kept doing it. When the new updated past-due invoice arrived, he got angry calls demanding an explanation. Simply read clause # on the contract YOU signed. it is right there.
He lost a few customer this way, but the majority stopped doing that shit right away.
I have a special breed of hate for companies that stiff their suppliers and/or employees this way.
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jasonlange780
What I find interesting is that Gamers Nexus turned out to be not only investigative journalism but also the morality police when it comes to these situations, in normal investigative journalism, you should present a facts Only opinion free report but I do love the passion that Steve brings to this and the morality when in the industry do the wrong thing. Steve is there to name and shame the wrongdoing. I think we need more institutions like Steve out there to protect us against. These corporate assholes that think they are above the law and above society and can do whatever they want . go get them. Steve nail their butts to the wall. protect the small guy with your voice
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What I find interesting is that Gamers Nexus turned out to be not only investigative journalism but also the morality police when it comes to these situations, in normal investigative journalism, you should present a facts Only opinion free report but I do love the passion that Steve brings to this and the morality when in the industry do the wrong thing. Steve is there to name and shame the wrongdoing. I think we need more institutions like Steve out there to protect us against. These corporate assholes that think they are above the law and above society and can do whatever they want . go get them. Steve nail their butts to the wall. protect the small guy with your voice
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ChrisM541
Top down rot isn't that uncommon, unfortunately. There's an even bigger top down scandal currently ongoing across the pond...
Have you covered the ongoing Horizon computer system Post Office enquiry on-going in the UK at the moment There's daily live broadcasts of this enquiry, where they put questions to everyone involved. Fujitsu are the software supplier (they're also heavily embedded in the UK). Shocking what so many in the Post Office from the top down, including their in-house lawyers did, resulting in the false convictions of hundreds of sub postmasters due to a massive cover up of buggy accounting software. So many lives ruined. Some took their own lives.
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Top down rot isn't that uncommon, unfortunately. There's an even bigger top down scandal currently ongoing across the pond...
Have you covered the ongoing Horizon computer system Post Office enquiry on-going in the UK at the moment There's daily live broadcasts of this enquiry, where they put questions to everyone involved. Fujitsu are the software supplier (they're also heavily embedded in the UK). Shocking what so many in the Post Office from the top down, including their in-house lawyers did, resulting in the false convictions of hundreds of sub postmasters due to a massive cover up of buggy accounting software. So many lives ruined. Some took their own lives.
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TyneGuitar
I don't wanna be THAT guy, however, I've consistently had issues with their products as it is. Mounting issues, manufacturing tolerance problems, leaks. Their blocks have killed two of my cards. While losing competition always sucks, it perhaps will pave the way for other companies to pick up and make the niche products they make for partner cards/other use cases, etc. Personally I'm rooting for Corsair. Their designs are more aesthetically pleasing (in my personal opinion) and their mounting solutions are far superior.
So yes, I'm being that guy saying Nothing of value will be lost, even though I'm wrong. I still don't particularly care.
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I don't wanna be THAT guy, however, I've consistently had issues with their products as it is. Mounting issues, manufacturing tolerance problems, leaks. Their blocks have killed two of my cards. While losing competition always sucks, it perhaps will pave the way for other companies to pick up and make the niche products they make for partner cards/other use cases, etc. Personally I'm rooting for Corsair. Their designs are more aesthetically pleasing (in my personal opinion) and their mounting solutions are far superior.
So yes, I'm being that guy saying Nothing of value will be lost, even though I'm wrong. I still don't particularly care.
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tylergibbs3869
This is not World war 1. Watch your history, This Sucks,. let both companys crash. The whole world (well from a AI view) is dependent on this teck. The whole fight is above many of the humans walking the earth. I only carry a Two year degree, and Im worried, but this entire Ai concept depends on the same industry to keep moving forward. This whole thing sucks. I.E. The thing is, I see most is humans go about laughing at those they think can not see a spin or a Misinformation Or what-ever the new tag is . So sad....But dont get me wrong. Your reporting in looked at by me for quality. Good reporting.
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This is not World war 1. Watch your history, This Sucks,. let both companys crash. The whole world (well from a AI view) is dependent on this teck. The whole fight is above many of the humans walking the earth. I only carry a Two year degree, and Im worried, but this entire Ai concept depends on the same industry to keep moving forward. This whole thing sucks. I.E. The thing is, I see most is humans go about laughing at those they think can not see a spin or a Misinformation Or what-ever the new tag is . So sad....But dont get me wrong. Your reporting in looked at by me for quality. Good reporting.
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bobcamoh.a.f.2874
glad you guy's are covering stuff like this since soooo many are really... sheltered...(saying it THAT way to be nice.) so they think this stuff doesn't ever happen especially at these kinds of companies and bigger companies. my working life in general is more of this kind of stuff and illegal crap being pulled on a daily... small towns and retirement towns in the US seem to be WAY more often of these illegal, iffy and skeevy things going on... lived in many of them, it's... really bad...
anyways, thanks for covering this and i hope this get properly situated.
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glad you guy's are covering stuff like this since soooo many are really... sheltered...(saying it THAT way to be nice.) so they think this stuff doesn't ever happen especially at these kinds of companies and bigger companies. my working life in general is more of this kind of stuff and illegal crap being pulled on a daily... small towns and retirement towns in the US seem to be WAY more often of these illegal, iffy and skeevy things going on... lived in many of them, it's... really bad...
anyways, thanks for covering this and i hope this get properly situated.
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chielvoswijk9482
I really like how GN is genuinely feared by the industry. Like the mere mention of the GN team snooping around will induce panic and send them scrambling to control damage before it is too late. For they know GN carries weight in the industry, ain't afraid to expose as investigative journalists should and that that whatever they put out will almost certainly get featured on many PC news outlets.
Such a shame. EK has always had some of the nicer looking blocks, but if they are THIS bad Guess i will avoid them from here on out.
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I really like how GN is genuinely feared by the industry. Like the mere mention of the GN team snooping around will induce panic and send them scrambling to control damage before it is too late. For they know GN carries weight in the industry, ain't afraid to expose as investigative journalists should and that that whatever they put out will almost certainly get featured on many PC news outlets.
Such a shame. EK has always had some of the nicer looking blocks, but if they are THIS bad Guess i will avoid them from here on out.
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TheBatracho
Two separate points: water cooling, in general, while popular, isn't technically worth it, so EK is already targeting customers that are willing to spend more money for tinkering or aesthetics. That's fine, I got a custom loop myself. Problem is, every time I look at watercooling products (especially GPU/CPU blocks), EK's prices are so much higher than, say, bitspower. I've used bitspower for years now without any issues, why should I overpay for something that's already not worth it from a performance standpoint.
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Two separate points: water cooling, in general, while popular, isn't technically worth it, so EK is already targeting customers that are willing to spend more money for tinkering or aesthetics. That's fine, I got a custom loop myself. Problem is, every time I look at watercooling products (especially GPU/CPU blocks), EK's prices are so much higher than, say, bitspower. I've used bitspower for years now without any issues, why should I overpay for something that's already not worth it from a performance standpoint.
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xTopCityx
Tangent: I bought an EKWB 360mm aio in the past year for a bud through New Egg. I was excited. He was excited. He installed it, and a week later the pump died. (I hounded him and made sure it wasn't installed incorrectly)
We were so disheartened.. and I was really confused. Like, these are top competitors in the game, and this just happened to us Now it makes more sense when apparently your company is a mess, though maybe New Egg could be blamed as well. At least it was fully refunded.
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Tangent: I bought an EKWB 360mm aio in the past year for a bud through New Egg. I was excited. He was excited. He installed it, and a week later the pump died. (I hounded him and made sure it wasn't installed incorrectly)
We were so disheartened.. and I was really confused. Like, these are top competitors in the game, and this just happened to us Now it makes more sense when apparently your company is a mess, though maybe New Egg could be blamed as well. At least it was fully refunded.
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lincolnsampaiobr
I really liked EK through the years, i was thinking about buying and block for a rtx4090(the double ones) that the price have reached a more palatable price(it was US$450 and now its close to US$300) but now im thinking if i bought it they will send, and if enough people think the same the company is going to fall really hard ...all that they done to the workers is despicable and should be punished ... but the company need to end ... i don't know this answers but time will tell
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I really liked EK through the years, i was thinking about buying and block for a rtx4090(the double ones) that the price have reached a more palatable price(it was US$450 and now its close to US$300) but now im thinking if i bought it they will send, and if enough people think the same the company is going to fall really hard ...all that they done to the workers is despicable and should be punished ... but the company need to end ... i don't know this answers but time will tell
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CrazyCat229
The owners were quite full of themselves when they visited our little shops in DFW. We are about 8 stores all over Texas and after they went to a few of our Dallas locations they completely pulled their stuff from our shelves saying that we weren't big enough to be selling their stuff. No big loss there... we had to go through the stuff they sent us to double-check their quality control anyhow before we put it on the shelf anyhow. LOTS of stuff got sent back to them.
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The owners were quite full of themselves when they visited our little shops in DFW. We are about 8 stores all over Texas and after they went to a few of our Dallas locations they completely pulled their stuff from our shelves saying that we weren't big enough to be selling their stuff. No big loss there... we had to go through the stuff they sent us to double-check their quality control anyhow before we put it on the shelf anyhow. LOTS of stuff got sent back to them.
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Dovahkiin27
It's pretty saddening to hear how far EKWB has fallen. The last couple years they had some really amazing deals that made let me get into watercooling.
Even though i hope EK can turn this around, the old ceo was only the tip of the problem iceberg and it doesn't sound like he's been making the right choices or inspired others to do the same. Addressing that problem iceberg will be costly but if EK doesn't want to pay that price, then the coming failure is deserved.
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It's pretty saddening to hear how far EKWB has fallen. The last couple years they had some really amazing deals that made let me get into watercooling.
Even though i hope EK can turn this around, the old ceo was only the tip of the problem iceberg and it doesn't sound like he's been making the right choices or inspired others to do the same. Addressing that problem iceberg will be costly but if EK doesn't want to pay that price, then the coming failure is deserved.
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gamersnexus
I always assumed that EK manufactured all their own waterblocks etc. This way they could create certain blocks etc on demand, if their current stock was out/low.
Hearing that they are outsourcing the crafting to other companies... baaaah...they are no longer a company that craft stuff... they are basically a reseller... just using their famous name to boost sales.
Not going to buy from them again.
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I always assumed that EK manufactured all their own waterblocks etc. This way they could create certain blocks etc on demand, if their current stock was out/low.
Hearing that they are outsourcing the crafting to other companies... baaaah...they are no longer a company that craft stuff... they are basically a reseller... just using their famous name to boost sales.
Not going to buy from them again.
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oxocanDOTcom
Wow, I would never have imagined that a prestigious company like EK would do this to its employees. Does the company know there are ways to raise capital from private and public investors in return for giving up a small portion of their company They would rather sink their business, shut it down and not pay their employees over giving up a 5-10% equity stake. CONGRATS TO EVERYONE COMING FORWARD!
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Wow, I would never have imagined that a prestigious company like EK would do this to its employees. Does the company know there are ways to raise capital from private and public investors in return for giving up a small portion of their company They would rather sink their business, shut it down and not pay their employees over giving up a 5-10% equity stake. CONGRATS TO EVERYONE COMING FORWARD!
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carlosfester
Its a hard choice: sending to all world reviewers samples and parts for marketing expecting sell a lot. On the other hand, people dont buy enought to cover the costs. EK parts are the more expensive, perhaps the bests ok, but the reality is that they didn't sell as expected and people are preferring AIOs - i see a lot of builders using AIOs for many builds and now i understand why
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Its a hard choice: sending to all world reviewers samples and parts for marketing expecting sell a lot. On the other hand, people dont buy enought to cover the costs. EK parts are the more expensive, perhaps the bests ok, but the reality is that they didn't sell as expected and people are preferring AIOs - i see a lot of builders using AIOs for many builds and now i understand why
reply
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