EKWB Struggles: Salaries Unpaid, Debts Mount

EKWB, a renowned Slovenian manufacturer of PC water-cooling systems, enjoys a strong reputation in the DIY market. However, in recent years, the company has faced significant challenges. On one hand, it has been impacted by drastic changes in the global market environment; on the other, it has been beleaguered by its product development issues and financial difficulties.

According to a report by Gamers Nexus, EKWB appears to be mired in unending financial woes, with liquidity issues and surplus inventory leading to months of delayed salary payments to employees and outstanding debts to suppliers and contractors. Consequently, some products have languished in warehouses for extended periods.

EKWB operates two entities: its headquarters in Slovenia and a subsidiary in the United States, EK Cooling Solutions. It has been reported that EKWB’s irresponsible and negligent payment practices have forced partners and employees to bear the brunt of poor management. The root of these issues began with EKWB’s over-expansion of its product line, leading to product surplus. The company boasts an extensive range of water-cooling products, including over 230 water blocks, 40 cooling kits, 85 reservoirs, 40 pumps, 73 radiators, and 212 various accessories.

EKWB does not own manufacturing facilities; instead, it outsources production. Due to the long sales cycles and high pricing of EKWB’s water-cooling products, combined with a decline in sales volume by 32% over the past year, the company’s financial situation has worsened. Even though the manufacturing partners accept orders at minimum quantities, they struggle to meet sales targets. EKWB’s warehouses now hold millions of dollars’ worth of unsold inventory, with the company facing difficulties in paying its bills.

The issue of months without salary payments is dire, but internal management issues exacerbate the situation, with frequent disputes, verbal abuse, and blame-shifting among departments. EKWB’s management seems incapable of addressing these issues effectively.

EKWB has closed its offices and warehouse in Texas, sold a building to pay off debts, and outsourced the production of workstations and gaming PCs under the names “EK Fluid Works” and “EK Fluid Gaming” to SwiftTech, hoping to generate additional cash flow.

Two years ago, EKWB was already facing financial difficulties, leading to layoffs to cope with a sharp decline in sales.