Echolab Goes into Liquidation

Posted by Joe Zaller
May 20 2010

Long-established broadcast production switcher vendor Echolab announced via email today that the company has been put into liquidation.   

Echolab, which has been in business since 1974, had been on the ascendance recently under the leadership of company CEO Nigel Spratling.   

Spratling revamped the company’s product line-up, which culminated in the launch of the Atem production switcher family.  At NAB 2010 Echolab announced that it had signed an OEM deal for the Atem line with the broadcast communications division of Harris (who has now removed the press release about the deal from their website). 

The email from Spratling said the company’s primary investor was no longer prepared to fund the company, and that the news was a great show to everyone.  

The full text of Spratling’s email is below:   


    

From:Nigel Spratling [mailto:nspratling@echolab.com]
Sent: Thursday, May 20, 2010
Subject:Echolab closureDear all (distribution list concealed for privacy),   

It is with much sadness that I have to tell you that yesterday (May 19th) Echolab was put into liquidation. Our primary investor who had negotiated the recent agreement with Harris was no longer prepared to fund the company through the transition and decided that this was his only course of action; it was a great shock to us all.    

I am truly sorry that this action leaves many unemployed, suppliers with unpaid bills and customers with unsupported products. The recent introduction of an expanded Atem switcher family look set to take us into growth and profit as the market reception was excellent and our sales funnel had grown by $2M as a result. We had been sustaining a run rate of about $5M and the addition of Atem was set to double that.    

I truly believe that our small team had created the very best of breed in small and medium sized production switchers and at a price point that provided exceptional value and margin, facing the loss of these efforts is difficult for everyone involved.    

The liquidation company will be trying to sell the companies assets, product IP and inventory in order to pay creditors over the next few weeks. Hopefully they will be successful in their efforts.    

Naturally there are now some good people looking for jobs (including me), so if anyone is hiring please let me know.    

Best regards,

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