Native Instruments is in preliminary insolvency proceedings, meaning that it must liquidate assets in order to continue operating as a business.
Native Instruments (NI), a staple software and gear brand among electronic musicians, has entered into preliminary insolvency hearings with the German government.
Insolvency proceedings in Germany differ from those of bankruptcy in the US in a few key ways. For one thing, German firms found to be insolvent must liquidate their assets according to a process over which their leadership has limited control. These decisions are mostly overseen by a court-appointed administrator — and in the case of NI, that official is Prof. Dr. Torsten Martini, according to Create Digital Music.
A spokesperson on behalf of NI did not immediately respond to EDM Identity’s request for comment, and the company has not publicly offered any insight into the causes of its insolvency.
Native Instruments was formed in Berlin in 1999, although its founders, Stephan Schmitt and Volker Hinz, had used the name since 1996, when they developed a software synth called Generator. In the years since, it has expanded to oversee products like DJ software Traktor, sampler Kontakt, and controller-DAW combo Maschine.
This isn’t the first time NI has shown signs of financial strain. In 2020, it laid off 100 employees, or 20% of its staff, and in 2021, the company was acquired by US private equity firm Francisco Partners. Soundwide, the Francisco umbrella company in charge of NI, then laid off 8% of the employees of all the companies it owns, including iZotope, Brainworx, and Plugin Alliance.
Native Instruments’ preliminary insolvency proceedings have yet to offer any concrete answers as to how its various product lines will be affected moving forward.
