Scythe faces uncertain future in Europe as insolvency proceedings begin

CPU cooler maker Scythe may be in deep trouble, as reports suggest the company’s EU division is potentially on the verge of shutting down. According to German tech portal Computer Base, CPU coolers from the manufacturer have been in short supply. The primary reason given is that the company's EU division has run out of money and filed for insolvency.

As noted by the Consumer Protection Forum, on April 17, 2025, the district court in Reinbek, Germany, issued a "provisional insolvency administration" for Scythe EU GmbH. This is a temporary step in the insolvency process designed to safeguard a company's assets and oversee their proper management while full insolvency proceedings are still pending.

This measure is usually triggered when a company is experiencing severe financial strain and is at risk of becoming insolvent. It is said to usually last two to three months, and during this time, a court-appointed administrator steps in to oversee the company’s finances and make sure no assets are lost or misused before the formal process begins.

In short, Scythe EU is going through a critical period where its finances and business operations are being audited, and possible changes are being planned to try to save or reorganize the company structure.

Scythe, originally a Japanese company, operates its European business through Scythe EU GmbH, based in Oststeinbek, Germany. The past few years has witnessed a sharp increase in budget CPU coolers from lesser-known or unbranded Chinese manufacturers. Many of these offerings, often clones or knock-offs of established brands including Scythe, present a growing competition in the entry-level and value segments. These coolers often mimic the design, styling, and even the model names of premium CPU coolers, at a fraction of the price. This makes them attractive for budget PC builders and casual gamers who don’t want to shell out $50–100 for a branded CPU cooler.

Some of these coolers actually perform well, especially for users who don’t push the limits of their CPU. They rarely match top-tier coolers in thermal efficiency or acoustic performance, but are often good enough for casual users. Additionally, online marketplaces like AliExpress, Banggood, and even Amazon are filled with listings for these clone coolers, often with inflated ratings and staged reviews, which further boosts their visibility and sales.

While there's no clear evidence yet, this wave of budget clones has possibly put a lot of pressure on Scythe, forcing the regional division to file for insolvency. We have reached out to Scythe for an official statement on the matter but haven’t received a response as of yet.

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Kunal Khullar is a contributing writer at Tom’s Hardware.  He is a long time technology journalist and reviewer specializing in PC components and peripherals, and welcomes any and every question around building a PC.