EKWB has responded to recent reports revealing financial disarray within the company. CEO Edvard König issued a public statement affirming the company's faults and promising to rectify issues including outstanding payments to personnel and suppliers, as well as improving internal communication within the company.
König confirmed that everything previous reports discovered was true. He affirmed that EK's external contractors and business partners have experienced delayed payments. Since returning to his position as CEO in February 2024, König reports that he has been able to address several issues within the company, including the amended filing of U.S. taxes. But he states there is still "considerable distance to go" to address the company's ongoing problems.
At present, König states the company has begun cracking down on its most outstanding issues. These issues include delays and uncertainties regarding outstanding payments starting with personnel, and reconciling relations between all subsidiaries and entities of EKWB. He states the company is also working to improve transparency and internal communications with all of its employees regarding its current predicament, and resolving any outstanding pay for overtime work from its employees.
Gamers Nexus was the first outlet to report on EKWB's disastrous state of affairs. It uncovered serious financial issues as well as moral disarray within the company. EK was caught owing its suppliers, employees, and contractors a significant amount of funds due to a lack of revenue being generated from its product stack. Long story short, large volumes of high-end and expensive water-cooling parts take a long time to sell off.
Since GN's investigation began, EK has been scrambling to rectify its outstanding debts, going as far as selling one of its buildings to alleviate its financial stress. We are glad to hear that EK is owning up to its problems with Edvard König's latest statement. However, we expect these issues will have huge ramifications down the road that won't be washed away overnight. The full statement follows:
Dear Community, Media, and Partners,
First of all, I would like to say that we take this very seriously. It is true that some of EK’s external contractors and business partners have experienced delayed payments. We sincerely apologize for the difficulties this has caused them and the lack of adequate communication.
In February 2024, I, Edvard König, resumed the CEO position to return EK to its respected path. Several issues have already been addressed, including the amended filing of US taxes. We have realigned our focuses while our vision and strategic orientations have remained unchanged. There is still a considerable distance to go, and we immediately began by implementing the following key actions:
We appreciate the patience and understanding of our community, customers, and partners during this time. We are committed to fulfilling our financial obligations and regaining your trust. Our mission to elevate computers for a better world remains at the forefront of our focus as we move forward.
Thank you all for standing with us as we work through these challenges, just as you have supported EK for over two decades. We are dedicated to making things right and fostering a more responsible company culture.
—Edvard König, EK CEO
