UK: The Lincolnshire-based audio manufacturer has two new directors following a recent assets purchase agreement, writes David Davies. Cash-flow problems exacerbated by the demise of exclusive retail dealer Sound Control and the banking crisis are said to have presaged Logic System Pro Audio's entrance into administration on September 24.
A mere four days later, however, the core assets of Logic System Pro Audio were acquired by Dr Gurbakhash Sanghera and Shameer Sacranie, who have established a new company called Logic Systems Pro Audio (UK) Limited. Whilst all 17 staff (including Logic System founder Chris Scott), intellectual property, customer lists and many outstanding orders have transferred to the new operation, the old company's debts - as yet unspecified - have not been purchased.
Both of the new directors have existing interests in audio and related technologies. Dr Sanghera is CEO of digital jukebox manufacturer NSM Music, and is also the owner of two circuitry companies. Sacranie, meanwhile, has investments in NSM Music and iMedia Broadcast, but is a corporate lawyer by trade and is best-known for founding multinational law firm SFS Legal.
Speaking to PSN-e, Sacranie says that the opportunity to get involved with a premium audio product and help it to grow was "not to be missed. Beyond that there are synergies in combining the skill set and manufacturing capability at Logic to help other group companies."
NSM had been looking for a suitable audio system to complement installations of its music provision in bars and pubs worldwide for some time, adds Sacranie. Accordingly, he confirms that one of the priorities for the new company will be to create a range of systems that will complement NSM Digital music sources. A retail-oriented product line is also set to be launched building on "Logic's heritage of providing pro-audio products to the professional working musician".
"There is a huge demand for the professional product range that they already have in place," he notes. "In the first phase of the new company, the onus will be on providing the resources to fund current requirements and re-establish relationships with suppliers and customers. Beyond that we can start to think about other areas of the market, including retail and perhaps a focused range targeted at the installation sector."
Reflecting on a turbulent year, Chris Scott (pictured here with Henry Ang from dealer Showtec) tells PSN-e that the fundamentals underlying the business were always sound. "Our orders were building and building all the time," he recalls. "The problem was that we had no cash-flow because of the situation with Sound Control and the fact that the banks were not being supportive of or helpful to the manufacturing industry."
Now overseeing export sales and technical developments in the new company, Scott is optimistic of a bright future for the brand. "The company now has a chance to go forward," he says. "We have synergies [with NSM Music and the related circuitry companies] and we will have additional marketing support. We will also be working with the same suppliers and the same dealers. Finally, in this day and age with many of the existing UK brands in foreign ownership, I think the marketplace is in need of a strong UK manufacturer - a role to which we are dedicated."