Cooler maker Scythe files for bankruptcy of European division

CPU cooler maker Scythe is in serious trouble. The company’s European division is reportedly at risk of closure. According to Computer Base, the company’s coolers have been in short supply lately. The main reason for this is that the European division has run out of money and has filed for bankruptcy.

According to the German Consumer Forum, on April 17, 2025, the district court in Reinbek issued an order for an “interim insolvency administration” for Scythe EU GmbH. This is a temporary step in the bankruptcy process, designed to protect the company’s assets and ensure their proper management while all bankruptcy proceedings are pending.

Interim administration measures are usually applied when a company is in serious financial difficulties and is at risk of becoming insolvent. Typically, a potential bankrupt is in this state for two to three months. During this time, a court-appointed external administrator takes over the management of the company and controls its finances to prevent the loss or misuse of assets before the formal bankruptcy process begins. In short, the company’s European office is in a difficult situation: its financial and business operations are being audited, and rescue and reorganization measures may soon be taken.

Scythe, originally a Japanese company, operates its European business through Scythe EU GmbH, based in Oststeinbek, Germany. Over the past few years, the market has seen a surge in CPU coolers from lesser-known or unbranded Chinese manufacturers. Many of these offerings are clones or knockoffs of well-known brands, including Scythe, and are a growing competitor in the entry-level cooling segment. These coolers often copy the design, style, and even model names of premium CPU coolers, but at a fraction of the cost. This makes them attractive to budget PC builders and casual gamers who aren’t willing to spend $50–$100 on a branded cooler.

Some of these clone coolers actually offer decent performance and are of interest, especially for users who are not looking to squeeze the most out of their CPU. While they rarely match the top-end solutions in terms of thermal efficiency or acoustics, their capabilities are often sufficient for everyday tasks. These coolers can often be found on various online marketplaces, including AliExpress, Banggood, and even Amazon.

There is no clear evidence that the wave of budget clone coolers has put direct pressure on Scythe and caused its regional division to file for bankruptcy. Tom’s Hardware reports that it has sent a request to the company but has not received a response at the time of publication.