EXCLUSIVE: In a shock move US sound Company Klipsch has terminated their distribution agreement with Adelaide based Powermove.
The business worth approximately $10.5M is now under review with Klipsch US management due in Australia next week to meet with both Powermove and other potential distributors.
ChannelNews has confirmed the move with Powermove management.
According to sources Powemove are still confident that can retain the brand for the Australian market and are due to hold discussions next week with Klipsch management.
During the past year Powermove has extensively marketed the Klipsch brand in Australia with both mass and specialist dealers stocking the brand.
According to Klipsch sources the US Company is looking for expanded sales of their commercial sound offering in Australia with insiders tipping that the brand could be split among two separate distributors.
Last year Powermove said that they were looking to invest over $1M into the Klipsch brand and that they were looking to expand the speaker range into pubs clubs and entertainment locations that they believed would help to drive sales of the consumer range of Klipsch sound systems while also allowing consumers to “hear firsthand just how good the Klipsch sound products are”.
Klipsch is a USA leading loud speaker company that produces loudspeaker drivers and enclosures, as well as complete loudspeakers for high end, high fidelity sound systems, public address applications, and personal computers.
The company’s Klipsch consumer products are ranged at several Australian retailers, including the Klipsch Pro Media 2.1, the 2013 PC Speaker of the Year, the Quintet, the world’s highest selling sub satellite surround system, the new range of consumer portable Bluetooth speakers, Gig, KMC1 and KMC3 and the brand’s category leading high quality sound bar and soundstage products.
Last year the award winning Klipsch headphone range also got a facelift with an additional focus on the fitness category.