Studio trade group SPARS has announced that, in the wake of the closing and bankruptcy of tape manufacturer Quantegy, the organization is attempting to create a process by which SPARS members would call tape orders into the factory directly.
Richard Lindemuth, CEO of Quantegy, which entered Chap. 11 bankruptcy at the end of last year, said the SPARS initiative would act as a barometer to gauge the demand for pro tape. It will also act to curb speculators who have been auctioning off remaining stocks for as much as four to six times their retail cost, taking advantage of the shortage created by Quantegy’s factory closure in December.
New sales will come from existing coated formulation sheets that will be slit to order, depending on the required configuration. Pricing will remain stable, but Lindemuth expects to be able to increase prices going forward - in the range of nine to 10 percent, to cover increased costs.
“In terms of tape for pro audio, we’re it,” Lindemuth said. Currently, there are no plans to move the manufacturing plants offshore. Lindemuth said he hopes to have a new round of financing in place from investors within 30 to 60 days, allowing new tape stock to be manufactured again.
For more information, visit www.spars.com.