EFA files for bankruptcy

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clipped this from the 313 list. wonder if any small labels will get screwed?

Dear Business Partners,

with deepest regrets we herewith must let you know that we have been forced
to file bankruptcy today.

This is based on the developments of the recent weeks during which we have
tried everything to avoid this step by downsizing our staff, restructuring
all distribution methods and channels, negotiating with third parties,
particularly with several groups of possible investors, yet - sadly - to no
avail. All our attempts to find any other means to keep afloat in times of
collapsing markets have remained unsuccessful. Since it has not been
possible to reach possible solutions and it has become obvious that we were
no longer able to stay in business when relying on our own strength.

We expect the relevant court to name a receiver within the very future. We
do hope that jointly with that receiver we may be in a position where EFA´s
key business areas can be saved and restructured. However, it is unclear if
our desire to reestablish EFA will be rewarded by the receiver´s
perspective.

We thank you for all the years of cooperation and the trust in EFA.

Yours sincerely

EFA Medien GmbH

william (william), Thursday, 4 March 2004 00:31 (twenty-one years ago)

damn :(

Barry Bruner (Barry Bruner), Thursday, 4 March 2004 00:34 (twenty-one years ago)

Very unfun, they seemed to be able to directly/indirectly support a lot of good labels -- including In the Nursery, who used them as distributors for their own two decades worth of efforts now.

Ned Raggett (Ned), Thursday, 4 March 2004 00:56 (twenty-one years ago)

that news is SO bad for anyone that likes german techno

i wonder who will pick up tresor, the basic channel family, klang elektronik, disko b, force inc, kanzleramt, perlon, playhouse ...

not to mention the rest of the world: subvoice, source, rise robots rise, rephlex ...

vahid (vahid), Thursday, 4 March 2004 01:11 (twenty-one years ago)

haha thank god we have slsk (ironic)

vahid (vahid), Thursday, 4 March 2004 01:12 (twenty-one years ago)

int'l dj gigolos, chicks on speed recs, kitty-yo..

the surface noise (electricsound), Thursday, 4 March 2004 01:14 (twenty-one years ago)

pinnicle went under this summer. I hate to say it, but the dance music business is genuinely in a state of crisis. If EFA cannot stay in business that says a lot.

Born-Again Pubescent Undercover Pocket Nihilist Crochet Ninja (mjt), Thursday, 4 March 2004 02:11 (twenty-one years ago)

for the smaller labels...let's see who survives this as i am sure many are owed $$ from EFA. not trying to be pessemistic[sp] but i am sure some of them fund their next release on the profits of the previous.

william (william), Thursday, 4 March 2004 02:14 (twenty-one years ago)

Extremely sad.

Alex in SF (Alex in SF), Thursday, 4 March 2004 02:15 (twenty-one years ago)

Rough Trade USA pt 2

jack cole (jackcole), Thursday, 4 March 2004 02:52 (twenty-one years ago)

What is EFA, exactly? German distributor of dance vinyl?

JoB (JoB), Thursday, 4 March 2004 18:27 (twenty-one years ago)

here is their distribution list

they also do cds!! chances are, if you've bought a european techno cd in the last several years, it had a little sticker or imprint on the back somewhere that said EFA.

vahid (vahid), Thursday, 4 March 2004 18:35 (twenty-one years ago)

whoops! link doesn't really work right. anyway, if you click on the big red efa it navigates you back to the front, and you can pick "research : labels" from the menu on the left to see the list ... it's pretty exhaustive.

vahid (vahid), Thursday, 4 March 2004 18:38 (twenty-one years ago)

This is very very very fucking sad.

Andy K (Andy K), Thursday, 4 March 2004 18:39 (twenty-one years ago)

Mondo sad.

Barima (Barima), Thursday, 4 March 2004 19:07 (twenty-one years ago)

EFA actually is an abbrevation for Energie für Alle. energy for everyone.

egon krenz (slaytrack), Thursday, 4 March 2004 19:55 (twenty-one years ago)

But, despite the innate sadness of the event, is it relevant outside of Germany? I'm just asking.

JoB (JoB), Thursday, 4 March 2004 20:34 (twenty-one years ago)

well - if nobody picks up their distribution contracts, how am i going to find the music?? i suppose the buyer at the local record shop could spend the time to order seperately from all these different labels, but in reality he's probably not going to have the time or the ability to keep track of all that. i imagine some company will step in and pick up some (if not all) of the contracts, but even if it breaks into two - that doubles the paperwork - and the time spent picking through catalogs - and it makes it that much less convenient for the record buyers. so they may just end up restocking these labels less - so out here in california i may never end up seeing superlongevity 3 in a store. (i'm not a big internet shopper). until we had watts distribution or submerge it was impossible to find detroit techno out where i live. i guess it's just a matter of convenience, but i like having record stores - they're more fun than internet shopping, too.

william is also OTM.

vahid (vahid), Thursday, 4 March 2004 20:43 (twenty-one years ago)

Hell yes, I'm not sure about the percentages but loads of German techno/house cds I own were distributed by EFA.

Omar (Omar), Thursday, 4 March 2004 20:43 (twenty-one years ago)

sorry JoB - i didn't realize maybe you were just wondering about the numbers ... almost 100% of the german stuff i have access to is from EFA.

vahid (vahid), Thursday, 4 March 2004 20:44 (twenty-one years ago)

I was just wondering what EFA is about. I gather they distribute labels' releases to the rest of the world as well. I would have thought there are local distributors in several different countries taking care of that. In fact, I'm sure there are (to a certain extent).

JoB (JoB), Thursday, 4 March 2004 20:57 (twenty-one years ago)

here is the most detailed article I can find on he EFA bankruptcy, as it is in german I will try to give the important parts.
http://www.taz.de/pt/2004/03/04/a0239.nf/text.ges,1
they filed for bankruptcy (which was rumoured already weeks ago) that doesn't mean they are necessarily out of business. it is a bit similar to chapter 11 in the states. they made be able to continue if their creditors agree to a new downsized business plan.
already a year ago basic channel, kitty yo and scape changed to another distributor in the recent weeks thrill jockey, Crippled Dick Hot Wax followed suit. that's only relevant for distribution in germany, if i am right. EFA couldn't pay most labels since months as revenues were declining.
especially very small labels, with only few releases are hit hard by this and will have difficulty finding another distributor, as Indigo, the other independent german distributor won't accept "micro-labels". EFA had the philosophy to support those small labels too. also EFA organized the production for many small labels and now can't pay the bills of the production facilities, who obviously doesn't want to send out the printed vinyls, cds.
bigger labels left the sinking ship in time or won'T have much trouble finding another distributor (probably INDIGO), but the small ones are fucked.

egon krenz (slaytrack), Thursday, 4 March 2004 21:25 (twenty-one years ago)

correction: they might be able to continue, but from the tone of the article that's not very likely

egon krenz (slaytrack), Thursday, 4 March 2004 21:27 (twenty-one years ago)

EFA is pretty much the flagship distributor for dance music from europe.
They handled it better longer than anyone else have. Big Respect.

That is really sad that they are going down, jeez with Pinnacle out too its going to be near impossible to get stuff out here. I am not that big a fan of buying on the internet either but at this point I guess I am going to have to start getting used to it.

Vahid are there any good internet resources out here on the west coast for techno?

hector (hector), Thursday, 4 March 2004 23:05 (twenty-one years ago)

hector my favorite source for techno vinyl is actually a french online store called nuloop. the shipping is very quick and the selection is very, very good. also, it's reasonably priced IF you wait, save up, and buy 100-200 bucks worth of stuff at a time. if you're buying one or two records at a time then you'll probably get screwed for shipping over the long run, though.

i don't know of any good online californian stores (not to say they don't exist), or really any storefront that compares to nuloop.

vahid (vahid), Thursday, 4 March 2004 23:10 (twenty-one years ago)

Re: other distributors, does Neuton only handle vinyl, or is it possible that they will take on some of EFA's contracts?

Barry Bruner (Barry Bruner), Thursday, 4 March 2004 23:15 (twenty-one years ago)

Thanks for the info, I have heard about nuloop but try to order stuff domestically if i get the chance, cause I only seem to buy things one or two at a time.

I would have thought that I would have been suffocated under the wealth of stores out here but find myself frustrated more often than not.

The euro is killing me these days too, the price of european music just goes up and up.

hector (hector), Friday, 5 March 2004 00:29 (twenty-one years ago)

the other thing to remeber is that even Watts is struggling right now. I have a close friend who runs a label out here who was doing 1500 units a release a couple years ago and getting paid within 60 days is now doing 600 units a release and they withheld payment for 6 months. According to them, their business died after 9/11 and it never came back, in fact it has declined.

Dance music is a mess right now, Integrale went under as well this summer, which means that a lot of hard techno labels in the UK lost their distributor. Those records are not my cup of tea, but it still worries me. I was talking with PJ from S://kimo awhile back and he said that his business died after 9/11 as well. Basically, he said that his standby's were still selling, autechre and BoC are moving 100 12"s but everybody else is just moving a handful of records if they are lucky.

I wonder why it has declined so much in the last few years. I think the decline in the cool-factor of electronic music coupled with the increase in product because every kid with a laptop is a "producer" because he has a crack of Reason is what is killing it right now. I think it has lost so much audience because of the sheer amount of crap out there; as much time as I have invested in electronic music I almost do not feel like wading through a glutted market full of lukewarm product anymore.

Filesharing does not help either, but I don't think that is the problem. I think what is killing sales is that consumers don't have to take chances with crap product anymore. When I think of how much money I have wasted on bad records over the years because I had to order them unheard it makes me sick. I have only recently started buying physical media again, and then it is only with albums I have already heard and know I am getting value for my money. That also means that I spend about 75% less than I would have if I just had to take a leap of faith with new releases. Your shit has to be pretty hot if you want me to shell out 14 bucks for it. ;)

Born-Again Pubescent Undercover Pocket Nihilist Crochet Ninja (mjt), Friday, 5 March 2004 09:15 (twenty-one years ago)

I am also tired and highly caffinated so pardon the grammar and spelling boo-boo's.

Born-Again Pubescent Undercover Pocket Nihilist Crochet Ninja (mjt), Friday, 5 March 2004 09:17 (twenty-one years ago)

the (final, and surprisingly so) death of vinyl might be a factor. many many labels that deal largely in vinyl can barely sell 200 copies of anything.

the surface noise (electricsound), Friday, 5 March 2004 09:18 (twenty-one years ago)

Not just dance labels, btw - EFA distributed/released loads of great 'lounge' and indie type stuff (Bungalow label for example)

zebedee (zebedee), Friday, 5 March 2004 11:28 (twenty-one years ago)

As the Taz article pointed out, this wasn't unexpected (internal problems/lack of focus). As many other distributors aren't doing bad at all, I'm a bit hesitant to blame it on an industrywide decline in demand. But the days of the market growing breakneck pace are certainly over.

Siegbran (eofor), Friday, 5 March 2004 13:48 (twenty-one years ago)

If it does end in them going, I would not be at all surprised to see Kompakt distribution picking and choosing from the list. Whether that would be wise of them, as their distribution side is growing rapidly, is another question.

___ (___), Friday, 5 March 2004 13:56 (twenty-one years ago)

There is also some more talk on this in a couple of threads at the discogs forum. Adam X and Frankie Bones from Sonic Groove NYC have been on that forum for a few months and its often interesting to get their perspective as dance shop owners & label owners in these sort of discussions.

I must say it is a little scary seeing other distibutors like Integrale and Prime going under the past year as well. And I hear the Force Inc label may be following shortly. Not sure what to make of it at this point, but I hope this trend doesnt get any bigger....

pete from the street, Friday, 5 March 2004 14:54 (twenty-one years ago)

Although I don't object to file-sharing when it comes to the material released by behemoth labels (as most of their albums are 70-80% filler and their loss in revenue probably has more to do with that and the fact Internet-savvy folk buy used/promo copies at eBay and/or Half.com and/or bricks-and-mortar shops), BUT I bet - hell, I'll bet my entire CD collection - that file-sharing's impact on smaller/indie labels is considerably more significant - and trickles up to distributors like EFA.

nader (nader), Friday, 5 March 2004 15:51 (twenty-one years ago)

Significance of file-sharing's impact on smaller labels = "...purchasing 75% less than I would have if I just had to take a leap of faith with new releases..."

So the preview factor is there, certainly.

One of the greatest 9/11-related impacts on my buying habits has been the US Dollar's downward spiral since. When I first began buying Kompakt discs, for example, I bought direct and would have continued to buy frequently. But the Euro's climb has made me extremely cautious and whereas I had been in the habit of buying ~4-5 discs/month generally (with the occasional overseas purchase), I've scaled that number back to 1-3.

A weak dollar's a bitch on imports.

nader (nader), Friday, 5 March 2004 16:54 (twenty-one years ago)

two months pass...
As an artist distributed by them, I need to say this is horrible. My label is now in jeopardy as well. All I can say is BUY YOUR MUSIC. what would you do if all your favorite artists stopped producing because they couldn't afford to go on?

I doubt any of you work for no pay.

There will be a few labels left standing and the independent scene will be dominated by them just like the mainstream is.

thanks

angry, Wednesday, 5 May 2004 16:43 (twenty-one years ago)

Kanzleramt.... noooooooooooooooooo!

tylero (tylero), Wednesday, 5 May 2004 16:54 (twenty-one years ago)


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