EdisonReport can confirm that Kobi Electric, once a fast-growing and prosperous lighting company, has closed their doors. Originally we were told that a few salesman had not been paid, but as we began our investigation, we learned that it was much worse. We are told that there entire sales team is owed money–significant money, as are many of their vendors.
We have further learned that that Kobi recently increased their line of credit and a bank audit did not go well. The bank made the decision to close the business and has appointed a receiver to liquidate the assets.
Kobi Electric first appeared on our radar at LIGHTFAIR 2017, where we learned that they were targeting Acuity Brand distributors. Kobi would sell similar product as to Acuity (some by the same manufacturers in China) at lower prices. It is ironic that today, Acuity Brands reported a 5% increase in sales and their stock soared as much as 19% in early morning trading.