EKWB issues public apology regarding delayed payments — promises employees and suppliers it will change its ways

EK CEO Edvard König
(Image credit: EK)

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

Aaron Klotz
Freelance News Writer

Aaron Klotz is a freelance writer for Tom’s Hardware US, covering news topics related to computer hardware such as CPUs, and graphics cards.

  • eye4bear
    I have seen the YouTube video from Nexis about this and it should never have gotten anywhere near this state. Sounds like no one has been driving the bus, OK, the CEO has come out and made promises (he had no choice) but where is the CFO? Your article also mentions that the CEO returned in Feb. I would assume that within the first week (or less) he would have done a comprehensive review of the business' financials and thus known things were this bad and pro-active BEFORE now being forced to admit how things are. I can not see them being trusted at all.
    Reply
  • vanerous
    eye4bear said:
    I have seen the YouTube video from Nexis about this and it should never have gotten anywhere near this state. Sounds like no one has been driving the bus, OK, the CEO has come out and made promises (he had no choice) but where is the CFO? Your article also mentions that the CEO returned in Feb. I would assume that within the first week (or less) he would have done a comprehensive review of the business' financials and thus known things were this bad and pro-active BEFORE now being forced to admit how things are. I can not see them being trusted at all.
    It's always quite a laugh when someone who clearly is not fully caught up on the story or has knowledge of how business works in general makes an outrage post like this. This comment is no exception.
    Reply
  • Giroro
    PROFESSIONAL TIP: When a company stops paying you, you're unemployed.


    Reply
  • hotaru251
    I fully expected this "we got caught so we'll come out and admit its true ...but also we promise we are gonna be better" as its bar the course for any company caught in drama that could destroy your company.


    he's been there for 2 months & if they are that much behind on payments & they lack the $ to pay idk if selling a building will even matter as that 1 building aint affording all your bills ;|

    As well as doesn't seem like anything was stated about the toxic relationship against the US based branch and the main branch.

    even the "we've paid our taxes" was only paid after it was brought to light they hadn't paid em...meaning if this never got brought up they'd of never paid em.


    If your current model is unsustainable and you keep doing it....its just going to happen again.

    "promises" by companies hold no water. People don't care about promises they only care about actions and results.
    Reply
  • FoxtrotMichael-1
    I was just mentioning in a private conversation the other day that one of the reasons we can’t seem to collectively have nice things anymore is a complete and utter breakdown of regular moral standards. Yes, every generation has seen corruption, crime, and cheating. However, running a company like this is a shameful thing and it’s surprising how many people make little immoral decisions daily that add up to something like this. If I’m the old man yelling “get off my lawn” then so be it, but people need to take some pride in their behavior and get back to doing things right. *shakes fist at nothing in particular*
    Reply
  • The Historical Fidelity
    Giroro said:
    PROFESSIONAL TIP: When a company stops paying you, you're unemployed.


    “We fixed the glitch, so it will work itself out naturally” - Bob # 1
    Reply
  • doughillman
    vanerous said:
    It's always quite a laugh when someone who clearly is not fully caught up on the story or has knowledge of how business works in general makes an outrage post like this. This comment is no exception.
    Simmer down Edvard.
    Reply
  • cyrusfox
    Have owned many nice EKWB on my GPUs. They were quality and expensive. Hope they can right the ship as they have been a great resource for WB compatibility in the past and provided great long term support.
    Reply
  • btmedic04
    Too little, too late. It should not have taken a video by GN to force your hand to take these steps. They should've been started in March at the latest
    Reply
  • palladin9479
    From my understanding the head office and executives there were actively hostile towards the US subsidiary and did many underhanded and ethically questionable things in an attempt to get them shutdown. Revenue made from the US subsidiary was attributed to the head office's books in the EU but not the the liabilities causing serious budget problems until it started to fall apart. Notice all the unpaid entities are connected to the US subsidiary? Yeah now EK has to scramble to get enough cash on hand to pay all those liabilities that was being masked by the tactics of the head office.

    As for the business itself, as long as it's business model is sound, which it seems to be, then they'll be ok. Business's being cash short due to seasonal revenue is pretty common and there are many financial tools available to smooth that over. Unfortunately financial entities frown when you have a line of creditors due to late payments and are very hesitant to approve bridge and short term capital loans in that situation. These things really need to be arranged ahead of time and it looks like the EU office, in their attempts to shut down the US office, didn't have an arrangement.

    Also guys, the current CEO is the owner / founder, he previously hired a different CEO to handle the business side. That other CEO was sacked after this nightmare was brought to the attention of the owner / founder.
    Reply