Newton-based audio equipment manufacturer Systematic Audio, LLC has filed for Chapter 11 bankruptcy protection. Systematic Audio, LLC, known for its speakers, amplifiers, and subwoofers sold under the Sundown Audio brand, filed the petition on June 9.
Court filings indicate the company intends to continue operating while pursuing debtor-in-possession financing and seeking approval to use cash collateral.
Systematic Audio, LLC Seeks Chapter 11 Protection
Case filings, as available on PACER, show that the company submitted its petition on June 9, 2026. CEO Scottie Johnson signed the bankruptcy petition on behalf of the company. Attorney Eric Steven Goodheart of DLA Piper LLP (US) is representing the company in the case.
Filing details add that the company currently operates under the business name Sundown Audio. The Newton, North Carolina-based company primarily develops and sells a wide range of vehicle audio products. Its product lineup includes subwoofers, amplifiers, speakers, wiring, and installation accessories.
What Led to the Filing
Case records show that the governing body of Systematic Audio, LLC has evaluated the assets, liabilities, and liquidity of the company. After the review, the governing body decided that a Chapter 11 filing was in the best interest of its creditors, employees, and other stakeholders.
The document also shows that company management can negotiate emergency debtor-in-possession (DIP) financing. In addition, it can request court permission to use its cash collateral to maintain day-to-day operations.
Highlights from the Petition
Case filings show that the company has included a list of creditors with the largest unsecured claims in its petition. Out of these, Primary Subwoofer Factory is the largest unsecured creditor. Other names on the list are U.S. Customs and Border Protection, Raymond Handling Solutions, Inc., US Coil Factory, TWC Inc., Estes Express Lines, and more.
According to the company’s corporate ownership statement, XS Investment Intermediate, LLC holds 100% equity in the company.
XS Investment Intermediate, LLC also holds 100% membership interest in the company, as given in the list of equity security holders.
A summarized version of the Chapter 11 petition is shared here:
- Filing Date: June 9, 2026
- Court and Jurisdiction: U.S. Bankruptcy Court for the Western District of North Carolina
- Type of Filing: Active, Voluntary Petition
- Chapter: 11
- Case Number: 26-50236
- Estimated Assets: Between $10,000,001 and $50 million
- Estimated Liabilities: Between $10,000,001 and $500 million
- Estimated Creditors: Between 100 and 999
- Reason for Filing: Restructure business under court supervision
The filing places Systematic Audio under court supervision as it works through the Chapter 11 restructuring process. Additional details about the company’s restructuring efforts and creditor negotiations could emerge as the bankruptcy case progresses.
