Quality Won Every Test but the Last One

It held more than 20 percent of the American television market, sold its most profitable division for $511.4 million, and filed for bankruptcy a decade later.

Four Buttons and No Batteries

The remote was silver and surprisingly heavy. It had no batteries.

When you pressed one of its buttons, something inside clicked. The television across the room changed the channel.

The mechanism was not electrical. Tiny aluminum rods, struck by miniature hammers, rang at frequencies too high for the human ear.

A receiver inside the cabinet picked up the sound and obeyed.

The television itself was heavier still. Real wood, or close enough to pass.

Curved glass thick enough to knock on. A lightning bolt stamped in chrome on the bezel.

That was Zenith.

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The Profitable Division Was Not the Famous One

Zenith Radio Company was incorporated in Chicago in 1923. Two amateur radio operators had been building sets on a kitchen table since 1918. For six decades the company manufactured radios, then televisions, earning a reputation for hand-wired quality that outlasted nearly every competitor.

By the late 1980s, the television business was losing money. What kept Zenith alive was a division most customers never connected to the brand: a computer operation built from the 1979 purchase of the Heath Company for $64.5 million.

The computers sold to government offices, universities, and corporations. By 1988, the division was generating $1.4 billion in annual revenue.

Its profits subsidized the television side.

The company America knew for its picture tubes was quietly surviving on computers.

A Lightning Bolt on Every Fifth Screen

For two decades, Zenith and RCA split the American television market between them. By 1960, each held more than 20 percent of national sales. Twenty-five other manufacturers divided the rest.

Zenith's advantage was durability. Inside a Zenith, every connection was soldered by hand.

A repair technician could trace a wire and swap a single part. Competitors' circuit boards had to be replaced whole.

The slogan matched the method: "The quality goes in before the name goes on."

The company also invented the modern wireless remote control. The Space Command, introduced in 1956, used those ultrasonic rods instead of batteries or infrared. Zenith said the device increased television sales by 40 percent.

By 1962, the company employed 11,000 workers, at least 6,460 of them across seven plants in the Chicago area.

Cheaper Sets Crossed the Ocean

In 1960, more than two dozen companies built televisions in America. Through the 1970s and 1980s, Japanese manufacturers shipped sets to the United States at prices none of them could match.

Zenith joined a lawsuit alleging the imports were dumped below cost. The case reached the Supreme Court in 1986. Zenith lost.

The others left one by one. Magnavox, RCA, Admiral.

By 1988, Zenith was the last major American company still building television sets in the United States.

The quality held. The economics did not.

The company lost money in all but one year after 1985.

The Standard Arrived Without Its Author

In 1989, Zenith sold its profitable computer division to Groupe Bull, a French technology company, for $511.4 million. The cash funded a single bet: high-definition television.

For nearly a decade, Zenith engineers worked on digital transmission systems. In 1996, the Federal Communications Commission adopted Zenith's technology as part of the national standard for high-definition broadcasting.

The company had helped write the rules every television maker in the country would need to follow.

But Zenith had no money left to build the sets that would use them.

GoldStar, a South Korean electronics company later known as LG, had been buying in quietly. A 5 percent stake in 1991. A controlling 55 percent by 1995.

Zenith filed for Chapter 11 bankruptcy in 1999. The acquiring company converted about $200 million of Zenith's debt into full ownership. Existing shareholders received nothing.

The Signal Still Travels

Zenith still exists. It is a research subsidiary in Lincolnshire, Illinois, with fewer than a thousand employees.

It builds nothing. It licenses patents and develops broadcast standards.

Every high-definition signal in the United States travels on a system Zenith helped write. The company that could not survive making television sets helped define how every set after it would work.

The last set went dark.

The standard it wrote still runs.