Distributor Weighs Up Struggling TEAC Brand As Losses Mount
ChannelNews understands that the brand could switch to a major appliance and consumer electronics distributor who already sells several Japanese branded products that are manufactured in China. The distributor has already met with TTA Group management in Singapore.
TTA has around seven years left on a 20 year licence that allows them to manufacture products under the Teac name.
The Company claims that during the past six months local management has struggled to get new products ranged at the likes of Harvey Norman, JB Hi Fi or The Good Guys.
The nett loss for the six months $4,400,115 compared to a profit last year of $653,838.
In September ChannelNews exclusively revealed that Teac Australia Product and Marketing Manager Peter Burnham was retrenched along with all Teac State Managers.
Also retrenched was Jason Carrick National Sales Manager, along with Michael Hoang National Support Manager along with the Company receptionist.
The Company admits that they are also suffering from margin erosion and that due to the conditions that prevail in the Australian consumer electronics market they are unable to lift margins.