Two of the biggest premium audio brands sold in Australia, are facing serious problems one is up for sale, and the other is set to sell assets and brands in a desperate effort to cut losses and mounting debt.

Vox International the owners of the Premium Audio Company, and the former Sound United, now called Masimo Consumer are facing difficult times ahead, between them they own several key audio key premium audio brands sold i Australia especially when it comes to receiver brands such as Marantz, Denon, Pioneer, Integra and Onkyo.

Late last week meeting Vox held an online AGM that lasted just 60 seconds, the board holding the key meeting holds a massive chunk of the stock governing the business, so their decisions are the ones that get the nod.

Voxx directors hold 44.61% of all Class A stock and 96.6% of all Class B stock which is held by founder John J. Shalam and his son Ari Shalam.

There was no mention during the sixty second decision making of the 12.2% fall in sales or the net losses that have climbed 53% or the mounting debt and poor decision making by senior management.

In the 60 seconds they elected seven board members, approved the company’s 2024 Equity Incentive Plan, and appointed an independent registered public accounting firm to help them get out of the mess they are in.

Let’s remember this is the very sale board who thought they could grow sales in Australia after dumping Qualifi as a distributor with the establishment of the Premium Audio Company, which has as also gone pear shaped.

Executives claimed that an appropriate number of shares were present at the meeting to represent a quorum “for the purpose of conducting business” and the getting of their agenda through.

Sharers in the business are down over 68% during the past six months.

Parroting previous speeches of CEO Pat Lavelle, Ari Shalam, Co-Vice Chairman of the Voxx Board then read a script that some observers claim might as well have been written by Lavelle, that revealed that the Company is facing serious global economic headwinds, OEM production delays, inflation, rising interest rates and a retail environment that is cutting back on the ranging of Vox International brands including their Klipsch speakers.

Despite previously trying to spin ‘optimism’ in previous financial briefings the business has had no alternative but to admit the business in 2025 was facing “economic hurdles” with executives having no other options than to sell assets to reduce debt.

There were no apologies, no honest admissions of poor judgment such as investing in the manufacture of Integra, Pioneer and Onkyo receivers when the market was telling directors they were taking a massive risk.

In 2024 gross margins fell 80 basis points.

Now the Company is claiming that there will be “additional restructuring in fiscal 2025 “focused on driving business across higher margin more stable product categories, further reducing overhead and exiting non-core products.

The goal apparently is to free up cash and “management bandwidth” to reinvest in the business.

As we previously reported the Company has hired an outside Company Accordion, to Analise its business, some claim it could result in the sale of the business.

The company has admitted its debt level of $60 million is too high and that interest on the money is hurting the business who is also in a joint venture with Sharp in the production of receivers.

An adverse Court ruling and added mortgage costs in the Sea Guard lawsuit, saw Vox International add $42 million to its debt.

To address the dire situation the business is also selling down real estate they currently own.

In a hint of what is coming Shalam claimed that they are now in “advanced discussions” to sell a non-core brand to a competitor and that a deal is expected to be completed in the third quarter.

He claims the deal should generate several million dollars in proceeds that will further help to shore up our balance sheet.

Shalam admits, that the sale of brands will result in lower sales, but “they should also improve operating performance.”

As for now Vox International’s focus is clear – debt reduction, and right sizing the Company for future growth,

As for what the market thought of their ideas, Vox International stock hit a new 52-week low of US$2.43/share.

At the start of the year VOXX stock was trading at US$10.85/share.

Investors have seen their investment drop by 77½% year-to-date.

As one observer claimed Is this what “shrinking to greatness” means?