fokker20planes

Anybody else besides me curious as to why all three bosses of a profitable company would sell out all their interests? I'd be scared if all the bosses of my company sold their stock and split!

poppy2

Is Hobbico on the stock market? What is the ticker symbol? Where do you get your information? Usually selling in its self isn"t a big deal. People need money. The time to pay real attention is when all the big wheels in a company are BUYING the stock.


Poppy2

iaclmac

I take exception with your remarks. Anytime there is a MAJOR shakeup in management, it is always a time of concern (weather the company is privately or publicaly held). However, I did do a little research and can find nothing to substantiate the the claim of a management change, shakeup or corporate sale. I could NOT find a ticker symbol for hobbico or any of its 4 divisions. I went to the Hobbico web site and found the following statement:

HOBBICO is the largest retail and wholesale distributor of radio-control hobby products in the world and one of the most progressive companies in the Champaign/Urbana area.

Hobbico consists of 4 basic divisions: Tower Hobbies, Great Planes Model Distributors, Hobbico Product, and Hobbico Administration. Each division has a different focus and excellent job opportunities exist in each one. Hobbico employs more than 600 people in these different divisions.

Being as large a firm at is appears, I feel it unlikely that it is experiencing financial troubles. At least I cannot find any documentation in any trade journal or website to substantiate such a claim. I would think that if there was something major brewing on the horizon, some of the industry "rags" would be talking about it.

TLH101

My Feedback: (90)

"However, I did do a little research and can find nothing to substantiate the the claim of a management change, shakeup or corporate sale."

Look here: http://www.towerhobbies.com/rcwnews/...bico-esop.html

mirwin

My Feedback: (1)

Here's the article:

Hobbico's employee stock ownership plan purchases distributor


By DON DODSON
© 2005 THE NEWS-GAZETTE
Published Online November 19, 2005
http://www.news-gazette.com/localnew...m?Number=19370

CHAMPAIGN – For the second time in recent months, a major Champaign employer has been sold to an employee stock ownership plan.
This time, it's Hobbico, the model hobby distributor that employs about 700 people in Champaign's Interstate Research Park.
Clint Atkins, who has co-owned the company with Bruce and Jeri Holecek since 1984, said employees were told of the transaction this week.
Last spring, Human Kinetics, a Champaign publishing company that employs more than 300 people, was sold to an employee stock ownership plan in a similar arrangement.
Atkins said the transfer by Human Kinetics founder Rainer Martens helped convince him a similar move would be good for Hobbico.
"I hope it has a positive impact," he said in a Friday interview with The News-Gazette. "The one thing I enjoyed the most is the relationship with a great product, a great facility and a great group of people. It's a lot of fun to walk through the plant, and I hope when employees drive by it, they say, 'That belongs to me,' and have that same pride of ownership."
Hobbico is the world's largest manufacturer, distributor and retailer of model hobby products, specializing in radio-controlled cars, boats and planes.
Atkins and the Holeceks, who live in Florida, will remain on Hobbico's board of directors. Joining them on the board will be longtime Hobbico President Wayne Hemming and Bill Muirheid, the company's senior vice president of finance.
Atkins said things should be "virtually unchanged" for employees – though he hopes they start thinking like owners and considering ways to reduce waste and inefficiency.
"All senior managers now think like owners," he said. "In reality, they really are."
The company traces its origins back to 1971, when Bruce Holecek founded Tower Hobbies in Champaign.
Two years later, Don Anderson founded a separate local company, Great Planes Model Distributors.
Hobbico was formed in January 1986 when Atkins combined the two companies, which he had acquired in 1984. The company became the leading retail mail-order firm selling radio-controlled models at discount prices.
Today Hobbico has facilities in Champaign and Urbana that encompass about 400,000 square feet. In addition to the headquarters in Interstate Research Park, Hobbico has a facility in Champaign's Apollo Industrial Subdivision and a manufacturing facility in Urbana. Functions handled locally include product development, sales, marketing and distribution.
The company also has a 200,000-square-foot distribution center in Reno, Nev., that serves West Coast customers. About 85 employees work at that center.
"This is an absolutely dynamic, great company," Atkins said. "The opportunity to share its future with who made it what it is today is too much to pass up."
Through the years, Hobbico has been approached "by multiple interests that wanted to buy us out," he said.
"It has never had an unprofitable month," he added.
The sale, which was completed Oct. 21, transferred 100 percent of the stock held by Atkins and the Holeceks to a plan held in trust for employees by GreatBanc Trust of Oak Brook.
"Bruce and Jeri and I are very pleased to turn the ownership of Hobbico over to the employees who helped us build the company," Atkins said. "Potentially, 785 employees will become owners of this successful and growing company."
Atkins said the transfer didn't come without some reservations.
"This is like a child, something so precious, something you've protected so long," he said. "It felt like a loss when the actual transaction occurred."
Atkins also operates The Atkins Group, a real estate development company that has developed residential subdivisions, commercial office parks and industrial subdivisions.
A Hobbico press release said more than 11,000 companies in the United States have some element of employee ownership. But only 2,000 of those are 100 percent employee-owned. Well-known employee-owned companies include Starbucks, Lowes, Anheuser-Busch and Southwest Airlines.
An employee stock ownership plan is a type of retirement plan that allows employees to share in the benefits of improved company performance and growth in value. The company makes contributions to the plan on behalf of eligible employees. Newly hired full- and part-time employees are eligible for the plan after a year of employment.

iaclmac

Now .. there is some good information. I wonder why I did not see it on the Hobbico site. No matter ... it appears for the best. I am wondering what stock they are talking about. I cannot seem to find a stock ticker. I wonder if this is "phantom stock". Any of you guys heard different??

Newc

In these sorts of companies the stock is privately held and therefore isn't listed or traded on any exchange. Think in terms of your local retail, construction and wholesale companies, including bars and restaurants, etc. These are in all likelihood set up where a number of family members have various percentages of the stock in that company. From time-to-time one family member will sell out his/her shares to another family member (or the remaining family members will buy the shares from the estate of a deceased member) or even a member of the public - if allowed by the articles of incorporation.

mirwin

My Feedback: (1)

It's a privately held corporation, not public, so financial disclosures to the public are not required by law. Hobbico will eventually get around to putting something on their website if for no other reason than to calm nervous. Of course, they'll put a marketing spin on it so we won't know the facts.

The only way we'll know for sure how this affects us is in future levels of customer service and product offerings.

Geistware

My Feedback: (16)

In any incorporated business when there is more than one owner, the ownership is usually stated in percent of ownership or shares. When the stock is set to a certain value, then you can say that one share equates to a fixed or variable dollar amount. If you belong to a credit union then you have shares in that credit union. Usually one share is equal to a fixed about. (usually one dollar) As the value of the credit union increases, the business gains additional shares and your interest is calculated in shares or fraction of a share.

poppy2

iaclmac-

You are correct in your post. If something major was brewing, you would know about it. Lets wish Hobbico all the success in the world. It is great to hear good news about a company, one that is working well, and will now probably work much better in the future. Generally, when you own something, you take better care of it. You go Hobbico.


Poppy2

fokker20planes

Thanks for all the input. My original info came from RCU itself from the home page. A special thanks to you mirwin for finding the newspaper article. Lets hope that Hobbico has a long and prosperous future being employee owned. Maybe I jumped the gun on panicking.