DAK Industries
| Company type | Private |
|---|---|
| Industry | Electronics retail, mail-order |
| Founded | 1966 |
| Founder | Drew Alan Kaplan |
| Defunct | 1994 |
| Headquarters | Canoga Park, Los Angeles , United States |
Area served | United States, Canada |
Key people | Drew Alan Kaplan (founder) |
| Products | Electronics including radar detectors, stereo speakers, security lighting systems, handheld photocopiers, compact televisions |
Number of employees | 400 (late 1980s) |
The DAK Catalog was issued by DAK Industries, a U.S.-based discount electronics importer named after its founder, Drew Alan Kaplan.
Founding
Established in 1966, DAK Industries evolved into a mail-order electronics company during the 1980s, headquartered in Canoga Park, Los Angeles, California. Kaplan, passionate about gadgets, initiated the enterprise while pursuing psychology studies at UCLA, initially dealing in reel-to-reel tapes and stereo installations.
After spending five years at UCLA without completing his degree, Kaplan committed fully to the business in North Hollywood, Los Angeles, concentrating on selling recording tapes. The Los Angeles Times once characterized DAK as "the L.L.Bean of consumer electronics," highlighting Kaplan's reserved personality and his avoidance of media interviews.
1980s
Prior to the rise of the Internet, DAK depended heavily on printed catalogs and advertisements to generate sales, which resulted in substantial expenses for printing and mailing. In 1985, amidst a legal dispute with a former printer, Kaplan ordered 3.8 million copies of the catalog.
By the late 1980s, DAK's annual revenue reached around $120 million, supported by approximately 400 full-time employees. Their product lineup featured items such as radar detectors, stereo speakers, security lighting systems, handheld photocopiers, and compact televisions.
The DAK catalog was notable for its thickness—about a quarter-inch—and was distributed throughout the United States and Canada. It showcased Kaplan’s distinctive first-person marketing approach, with some pages containing up to 1,400 words.
DAK was also responsible for introducing several electronic products to the American market for the first time, including early bread-making appliances and the Epson PX-8 Geneva laptop computer.
Bankruptcy
In 1992, following Tokai Bank’s sudden termination of an $18 million credit facility, DAK Industries filed for protection under Chapter 11 of the U.S. Bankruptcy Code. The company continued operations until December 1994 when the case shifted to Chapter 7, resulting in liquidation of its inventory.
Kaplan admitted to losing control over DAK in 1994 due to challenges in sustaining banking partnerships amid the Asian financial crisis and difficulties obtaining credit from U.S. banks because of the company’s high-volume, low-margin business strategy.
During bankruptcy proceedings, DAK’s valuable mailing list and customer records were sold to VentureDirect Worldwide and managed by Xactmail.com. Kaplan clarified that this list was not identical to his original customer database but rather a merged compilation of former clients combined with additional data.
Microsoft litigation
Amid bankruptcy proceedings, Microsoft faced a major legal defeat against DAK Industries related to a non-exclusive licensing contract primarily involving Microsoft Word.
The core issue revolved around bankruptcy law distinctions: liabilities incurred after filing are given priority to facilitate ongoing credit and operations, whereas debts existing before filing are treated equally. DAK continued to utilize Microsoft's license without remitting royalty payments, categorizing the outstanding amounts as unsecured claims.
The Ninth Circuit Court determined that Microsoft's demands did not meet the criteria for administrative expense priority. As a result, DAK was not required to pay administrative fees for license usage following bankruptcy, a decision that had considerable implications for software licensing and copyright enforcement within bankruptcy cases.
Revival and continuation
Following a period of inactivity, Kaplan established a new venture online named DAK 2000. He successfully reclaimed the dak.com domain from Drew Kaplan Agency, Inc. through arbitration in May 2000. In 2012, at 66 years old, Kaplan transferred ownership of DAK 2000 to longtime colleague Sol Harari and retired. Under Harari’s leadership, DAK maintains its focus on marketing electronics, preserving Kaplan’s unique, personal, and highly expressive style. The company now operates out of Brooklyn, New York.