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The encyclopedia · Marketing & Brand · Strategic decision · 1956–2025

E. Gluck sold Armitron watches for 65 years — a smartwatch bet killed the company

E. Gluck Corporation, owner of the Armitron watch brand for 69 years, filed Chapter 11 in December 2025 after a failed attempt to enter the smartwatch industry.

E. Gluck Corporation · 2025-12

What happened

E. Gluck Corporation was founded in 1956 by Eugen Gluck in Little Neck, New York. Through its flagship brand Armitron, the company became one of the largest watch manufacturers in the United States — by 1999 it held the fifth-largest share of all watch purchases by brand in the country. Armitron was known for reliable, affordable watches sold through mass retailers, not for cutting-edge innovation.

The company also manufactured watches under license for fashion brands including Anne Klein, Nine West, Juicy Couture, Vince Camuto, and Badgley Mischka. It remained privately held by the Gluck family throughout its existence, conservative in its approach and steady in its returns.

At some point in the early 2020s, E. Gluck decided to enter the smartwatch industry. The move was a radical departure from the company's core competency — Armitron had always been about simple quartz watches at accessible prices, not wearable technology. The smartwatch attempt failed, and the costs of the failed pivot eroded the company's finances. In December 2025, E. Gluck Corporation filed for Chapter 11 bankruptcy protection, citing the failed smartwatch bet as the cause.

Why it happened

  • A 65-year-old analog watchmaker tried to enter smartwatches — a market dominated by Apple, Samsung, and Garmin, companies with electronics experience E. Gluck did not have.
  • The company's entire business model — manufacturing simple quartz watches for mass retailers — left it with no R&D in software, sensors, or connectivity required for wearables.
  • Unlike fashion-brand watches needing only design and assembly, smartwatches demanded ongoing software support, app ecosystems, and firmware updates a family-owned manufacturer could not deliver.
  • When the smartwatch bet failed, the core business could not absorb the losses — it was already declining as affordable analog watch demand shifted to wearables.
What it costChapter 11 after failed smartwatch pivotcostly

The lesson

A company that built its name on reliable basics risks everything by chasing a trend it doesn't understand. The smartwatch bet didn't just fail — it took down the entire business.

Sources

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