I was checking out the AV123 site and was a little surprised that they have announced a closure. I hate to see any business close as that usually means that people are out of a job, but I guess it was inevitable. Or will it just start up under some other name?

I think it's really gone. The company no longer has any reliable manufacturing partners, limited access to designers willing to work for them because of a habit of not paying, and a reputation that they've incinerated over the last several years through blunders and misdeeds. Heck, they spent the last six months promising new products (LS-4 and a full like of new "G2" Rockets that included at least two centers, two towers, a bookshelf, a surround, and a 12" sealed sub) while dumping everything in the warehouse through the B-stock sales page and preparing for today's closure. Mark Schifter was in court on Friday last week for the latest continuance of his court case - I haven't heard how it went, but it appeared his lawyer has been trying to hammer out a plea deal for over a month now. Even if he avoids jail time, he's likely going to be required to pay back the $150,000 he stole through the raffles. After that, there's a lot of other debts that will make it hard for him to start up a new company.

It's too bad that they did n't stick to a sound business plan. They had some good products at good price points - Rockets on "sale", the X series were a great bargain. But the "pay now-ship whenever" plans are never a good thing and then the "raffle" issues, and the perpetual sales - what is the real price?

I have to admit the G2 Rockets were interesting, but they could n't even post specs before offering them up for sale. How any company can consider selling something through the internet without first posting specs is beyond my comprehension.

I have to wonder if the reason why they started to build/manufacture domestically was because they could n't get partners. They never really cited the reasons for the change.

The idea of the G2 Rockets was interesting, but they couldn't post specs unless they actually had complete designs. The RSC-500 spent four or five years in design. The "Rocket II" line was first mentioned at least three years ago, and involved much more radical design changes than the G2 showed. What are the odds that they could rapidly develop an entire family of new speakers (even ones clearly borrowing heavily from old products) at a time when they had greatly reduced resources? Much more likely that they had a local woodworker build a series of cabinets, maybe veneer a couple of them, do a little Photoshop work on some pictures, and use them as a distraction while selling anything they could (including empty cabinets for LS6's when they still owed some people completed speakers and subwoofers that they didn't bother to put amps in)).

That's likely part of it, but I think that's an oversimplification. They never talked much about their mistakes. They had a Chinese manufacturing partner after Sound Art China cut them off - they built Rockets there for a couple years and got the ELT525's from China as well. Could they have kept buying product from them? No idea. If you can't find a Chinese manufacturer willing to extend you credit, how many US manufacturers are going to be interested in your business? I think they used US manufacturing to build a few prototype samples and some replacement power amps to help keep things moving a little longer.

When I really think about this, it is hard to believe the extent some will go to put on a good front. I have often wondered why when your name is attached to scandal/scams. People do not forget names associated with these type of practices. I would imagine the longer this raffle thing goes on, the more information people will find out about AV123 and their principals. As with any specialty profession/vocation, they become small worlds (I know mine is small with 3000. Make a critical mistake and it will stick with you beyond retirement). These fellows associated with AV123 have to wonder where they 'll working next. Who would want to hire them? Overall, it is really too bad - nothing good has come out of all of this. Not only did it hurt AV123 customers but I would imagine that is has some effect on legitimate ID companies.

I recieved this today. Don't know what to make of it, but I am curious.


Dear AV123 Subscriber,

At Legacy Audio, we're proud to carry on our 27 year tradition of creating the finest quality speakers.

Should you decide to upgrade your AV123 system, Legacy will offer you a trade in, as well as a discount, on our products.

The Backstage Pass

Signing up for our Backstage Pass, will give you special discounts and behind the scenes information on Legacy products, and also keep you updated on announcements for AV123 customers.

Please click here to join.



Let us show you why Legacy has been, and will continue to be, the choice for music industry professionals, audiophiles, and consumers alike.

If you have any questions, please call us at 800-283-4644.

I got that yesterday. It appears that Legacy has acquired at least part of AV123's mailing list. I think Zu Audio got a similar list at some point. Based on chatter in other forums, I think it was a customer database of some sort, not the forum member list or Mark's personal PayPal list.