EKWB is experiencing financial problems, reports Gamers Nexus. Research shows, among other things, that the water cooling manufacturer has not paid its staff, suppliers and freelancers for months. The company is said to be facing liquidity problems and excess inventory.
Gamers Nexus bases its research on stories from thirteen sources, including (former) employees and suppliers of EK Water Blocks. The YouTube channel said it also received legal documents, cost statements, screenshots of instant messages and emails, contracts and information about the manufacturer's tax status. During its investigation, Gamers Nexus found traces of unpaid invoices and wages, in some cases as old as four months.
According to Gamers Nexus, the problems are partly caused by the company's irresponsibility and negligence regarding payments. The company is said to have excess inventory worth millions of dollars. The company generally offers many different types of products. According to Gamers Nexus, EKWB's range consists of more than 230 different water blocks, 40 complete water cooling sets, 85 reservoirs, 40 pumps, 73 radiators and 212 other accessories.
EKWB outsources the manufacture of these products to external manufacturers , which often apply a minimum quantity for orders. This means that EKWB has to order too many products, which are then not sold for a long time. This leads to the liquidity problems mentioned.
Unpaid workers and suppliers
Gamers Nexus' investigation follows reports from former EKWB product manager Dan Henderson. He shared his experiences on LinkedIn, where he writes that he is owed four months of back wages from the manufacturer. The team in Texas, where EKWB subsidiary EK Cooling Solutions is located, would also have been reduced to a skeleton crew with only a limited number of employees. EKWB then sent Henderson a cease and desist letter, in which the company demanded that he remove his message. According to EKWB, Henderson must also pay 70,000 euros to the company by April 25 for 'breaching his confidentiality agreement'.
Henderson's claims match the stories Gamers Nexus heard from its sources. For example, several employees report that they have not been paid for three to four months. In some cases, wage increases have not been paid for almost a year. EKWB would also not be clear about when they can expect those payments. The company 'operates in silence'. Four former employees allege that EKWB, or its subsidiaries, would 'scheme' overtime. The company would pay less to its employees after the work has already been done.
Gamers Nexus also spoke with an EKWB supplier who is owed four zeros by the manufacturer. The payment deadline for that invoice has already expired by three to six months, the source told the YouTube channel.
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