What could be argued as a terribly handled business decision, we spoke with both Powermove and the rumoured new distributor, QualiFi at the time who both confirmed that discussions were taking place.

Powermove, who were shocked by the decision were informed by a posted letter from the U.S. early last week.

Klipsch themselves asked StereoNET not to run a story on the distribution change as contracts were not yet finalised and Klipsch key personnel were to be travelling to Australia in early April to clarify the distribution changes.

Klipsch have today confirmed that “the company will sever ties with some current distribution partners, including technology distributor Powermove”, in order to streamline its efforts with a single source continental platform."

Klipsch purchased the Jamo speaker brand in 2005, which is distributed in Australia by QualiFi.

Vince Bonacorsi, Klipsch General Manager for Asia Pacific told StereoNET:

Klipsch will begin the process of consolidation to a single Australian distributor immediately.

Despite Powermove’s heavy investment in local marketing, extensive logistics operations and representation within the marketplace for the Klipsch brand, it hasn’t been enough to satisfy Klipsch Audio’s expectations for the Australian and New Zealand market. Support for the Klipsch brand by local specialist outlets has not been strong with some reporting the brand had been damaged by a previous retailers slashed pricing and online discounting.

Bonacorsi continued:

A core tenet of Klipsch Group’s global strategy is to increase focus in all markets. When we assessed our strategy in Australia, it was apparent to us we needed to simplify the business and streamline our distribution.

This will allow us to create a more effective brand image with business partners and consumers.

The official press statement offered no recognition to Powermove for their efforts promoting the brand previously, nor any thanks as the outgoing distributor.

Michael Henriksen, QualiFi CEO told StereoNET:

With the recent changes in the traditional loudspeaker market we are very excited to now represent both Jamo and the full suite of innovative Klipsch products which we believe has a huge potential in the Australian market.