Native Instruments Enters Preliminary Insolvency Proceedings

The legacy firm’s future is very much in the balance as restructuring begins.

As first reported in CDM, official documents confirm Native Instruments is in preliminary insolvency proceedings in Germany. Its assets and business are now under restructuring, supervised by an insolvency administrator. 

What is insolvency and restructuring?

Restructuring during insolvency means a company must reassess its assets, debts, and operations because its current structure is no longer sustainable. This process can result in selling parts of the business, reducing staff, or renegotiating contracts, all with the objective of either stabilising the company under new terms or preparing it for sale or closure. The outcome directly impacts employees, customers, and product lines. 

It is also possible that the Native Instruments brand could continue in a reduced form, potentially preserving key products or teams under new ownership or as part of a streamlined business model. At this stage, outcomes remain uncertain.

The immediate concern is for the excellent team, developers, and creative minds who have helped drive the company to become the behemoth it is. Second to that, many of us will have sunk countless hours and dollars into their products over many years and will be wondering whether they will ever see further updates. All in all, worrying times. 

Prof. Dr Torsten Martini has been appointed as the preliminary insolvency administrator (“vorläufiger Insolvenzverwalter”), a role that typically focuses on stabilising company finances and preparing for either restructuring or asset realisation under German insolvency law. This process effectively places significant decisions – including potential sales of business units or intellectual property – under the control of the administrator rather than the company’s existing executive leadership. 

The majority stake in Native Instruments has been held by private equity firm Francisco Partners since 2021. While the insolvency filings do not specify the firm’s current intentions, the appointment of an external administrator signals that the company’s future structure and ownership are likely to change. 

Native Instruments has not yet issued a public statement. Early insolvency often allows a company to stabilise operations with creditor oversight rather than proceed directly to liquidation, but it also marks a significant transition point for a firm of this scale.

A storm years in the making

Native Instruments has weathered multiple shifts in ownership and strategy over the past decade. After a brief period under the Soundwide brand – a consolidated parent for NI, Plugin Alliance, iZotope and Brainworx – the group retired the Soundwide name in favour of the Native Instruments identity in 2023, citing stronger brand recognition. From the outside looking in, it seemed like confusion reigned.

This was perhaps best exemplified with one of the major disappointments of recent years – Sounds.com, a sample subscription service that struggled to gain traction before closing for good in 2023. Perhaps the writing was on the wall. 

Despite the recent release of fan favourite Absynth 6 last month, the question remains – “How much have you used Native Instruments in the past decade compared with the decade before?” Did they simply run out of innovation and lose imagination with their huge growth? 

Fingers crossed for the best possible outcome. Sad times for us all. 

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