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legomaster
  • 18 months ago

Sad to say that CaseLabs has officially gone bankrupt Proof: https://twitter.com/CaseLabsUSA/status/1028064322079977472

Press f to pay respects

Comments

  • 18 months ago
  • 4 points

They already had problems in 2016. They had to shut down their custom orders back in 2016, and had back orders at the time of re-opening https://www.overclock.net/forum/380-case-labs/1614114-caselabs-custom-orders-open-again.html

Their product manager left in may 2016 to work on his own company https://twitter.com/caselabsusa/status/727285290465792000

So i don't really think the tariffs are the main cause and would love to see the numbers behind it but that won't happen.

Sad to see them go tho.

f

  • 18 months ago
  • 2 points

Your forum post isn't an example of them having "problems", at least not in a financial sense like those that caused them to shut down. They shut down custom orders back then because they were oversaturated with orders from government and resellers. AKA, they were doing too much business for their production capacity, so they shut down individual ordering in order to expand capacity and meet their business obligations.

A product manager leaving to start their own company is not an example of financial hardship for anyone.

The simpler solution here is that they are telling the truth, and the default of a large client + huge price increases in raw materials due to tariffs, is what shut them down.

  • 18 months ago
  • 1 point

The Parent Company went bankrupt as well.

That being said I am kind of surprised they didn't move over to Steel production alongside Aluminum, the majority of the sheet stock production of that comes from Canada and South America not China and you don't have the tariffs to worry about then.

[comment deleted by staff]
  • 18 months ago
  • 1 point

I’ve actually heard from a few people on Reddit that the tariffs haven’t even gone into effect yet. Can someone confirm this?

  • 18 months ago
  • 4 points

Yes and No there have been several groups of tariffs by both sides over both Steel and Aluminum.

Aluminum is the problem here China is one of the largest producers of recycled low grade sheet stock used for things like cases in the thicknesses needed.

Higher grades of sheet stock are short on supply and in high demand with military build-ups occurring across the globe.

  • 18 months ago
  • 2 points

Well, thanks Gilroar.

by the way, you’re in my phone’s autocorrect list somehow(0_o)

  • 18 months ago
  • 2 points

Besides the steel and aluminum tariffs from March/April, there were additional tariffs imposed on China on the 6th of July, and a forthcoming third group on China go into effect on the 23rd of this month.

edit for USTR posts about the two tariff groups I mentioned.

  • 18 months ago
  • 4 points

Honestly something as simple of the price of materials going up would not cause a company to go under if they were in good condition. But they weren't, As others have pointed out.

They made cases for a specific crowd. Mainly the high end enthusiasts that paid $300 for a case, Because they were spending $3000-$5000 on the entire build. And that market is small compared to the rest of the custom PC market. And with making cases for a small crowd at a high cost for both material and labor, Something was bound to go wrong eventually. And great cases have been getting much cheaper over the past few years. 2 years ago a decent case with a tempered glass side panel would have cost me over $150. Now I can get a decent case with TG on sale for $40. Companies like Corsair and NZXT adapted to the market by making good cases cheaper, While still having high end cases that were worth it if you were willing to spend that much. But Caselabs didn't have any lower end cases that they could sell in order to make profit and support their higher end cases. Companies like Corsair and NZXT don't make their profit off the $150-$200. Because not a lot of people buy those. They make money off the cheap $40-$80 cases. And by making those cases better, They make more people want to buy them, And they make more money, Allowing them to improve their products again, While keeping their higher end case market alive.

Yes CaseLabs made good products, But they made them for a niche market. And making products solely for a niche market rarely turns out well for a company. So this was just the breaking point.

I think a company like CaseLabs would have worked better as a smaller branch of a larger company. Like in a hypothetical scenario if Corsair owned CaseLabs and charged them with making the higher end cases. They would have the support from the lower market to keep them afloat to make the niche products.

Just my two cents on the topic.

  • 18 months ago
  • 2 points

f. It sounds like they weren't in the best shape to begin with since they also stated they defaulted on a large account, then the tariffs might have pushed them over the edge.

  • 18 months ago
  • 1 point

The default of a large account means they lost a revenue source from one of their large accounts.

Someone else stopped paying them, is what happened.

  • 18 months ago
  • 1 point

Gotcha, thanks for clarifying. I suppose that's part of being a small business, if you can't diversify the revenue streams enough losing just one of them can end it all.

  • 18 months ago
  • 2 points

They made good cases but extremely pricey. That didn't help either

  • 18 months ago
  • 3 points

And add to that the amount of cases they made. Its more simple when its only one case like the NCase M1.. Obviously there were other issues we might never know....

  • 18 months ago
  • 2 points

No real Fs really?

F F F F F

F

F F F F F

F

F

  • 18 months ago
  • 1 point

No real Fs really?

You might say that nobody gives a (real) F.

  • 18 months ago
  • 2 points

lol @everyone who is making excuses for the effects of the tariffs.

  • 18 months ago
  • 1 point

Pshhh....tariffs always work. History makes that very clear.

/s

  • 18 months ago
  • 1 point

f

  • 18 months ago
  • 1 point

F

  • 18 months ago
  • 1 point

f

  • 18 months ago
  • 1 point

F

  • 18 months ago
  • 1 point

F

  • 18 months ago
  • 1 point

F

  • 18 months ago
  • 1 point

Linustechtips blames it on the tariffs but they were already suffering. Sad to see them go.

[comment deleted by staff]

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