Horizon Hobby sold!
12-11-2013, 12:09 PM
#51
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Horizon Hobby has been a big part of my modeling life for a very long time. I hope that they survive a come out on the other side a better company.... I hope.
I sold a company 15 years ago to a very large corporation because they would allow me to continue to stay on with nearly unlimited capitol to grow the company. It sounded good but in reality it"s about the bottom line and really has to be to some degree.
I did grow the company about 25% within the first 6 months then the corporate guys wanted costs cut and bam....game over. I put in my 3 months notice and saw them Bankrupt in less than 6 months. Now, I'm not saying this is what is going on at Horizon, I hope not. Horizon has set a standard that may be difficult to administer in a corporate environment. The bottom line is we don't know what's going to happen at Horizon all we can do is hope that things will get better for them and they stay with us.
I sold a company 15 years ago to a very large corporation because they would allow me to continue to stay on with nearly unlimited capitol to grow the company. It sounded good but in reality it"s about the bottom line and really has to be to some degree.
I did grow the company about 25% within the first 6 months then the corporate guys wanted costs cut and bam....game over. I put in my 3 months notice and saw them Bankrupt in less than 6 months. Now, I'm not saying this is what is going on at Horizon, I hope not. Horizon has set a standard that may be difficult to administer in a corporate environment. The bottom line is we don't know what's going to happen at Horizon all we can do is hope that things will get better for them and they stay with us.
12-11-2013, 03:10 PM
#52
Wow, some of the comments are not even related to the subject!
They company changed hands, but it happens that heading one of the two (2) investor's groups you have the prior CEO of Horizon. While some companies were purchased for their assets, and then, run into the ground (Mitt Romney knew how to do that!), I do not think this is the case here. Only time will tell, but I do not think he would invest in an operation that is destined to be destroyed... This is not a manufacturing operation after all...
They company changed hands, but it happens that heading one of the two (2) investor's groups you have the prior CEO of Horizon. While some companies were purchased for their assets, and then, run into the ground (Mitt Romney knew how to do that!), I do not think this is the case here. Only time will tell, but I do not think he would invest in an operation that is destined to be destroyed... This is not a manufacturing operation after all...
12-11-2013, 03:17 PM
#54
12-11-2013, 03:44 PM
#56
Hey,
Look on the bright side: 'IUA' (Inappropriate Use of Apostrophes) is covered as a preexisting condition now!
Last edited by Shaun Evans; 12-11-2013 at 03:47 PM.
12-11-2013, 03:55 PM
#57
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This is a sad day. No matter what the marketing hype is a sale to a financial group inevitably leads to being run by bean counters, not product enthusiasts. That means support for discontinued products goes out the door. And just when I busted up a Hangar-9 P-51 PTS and am waiting for some money to fix it.
Last edited by j.duncker; 12-11-2013 at 05:18 PM. Reason: Political comment
12-11-2013, 04:32 PM
#58
Raise your hand if you remember what happened to Kraft back in the 70's? They were the number 1 manufacturer of RC radios. Phil Kraft sold them to an investment company and the company is now history.....
Doesn;t mean it will happen here, but the odds are it will not be for the better.....
Doesn;t mean it will happen here, but the odds are it will not be for the better.....
12-11-2013, 05:37 PM
#60
I hope the CEO reads this thread. I have had nothing but incredible and great service from their repair division when I have sent radios or engines back for service. I will continue to buy products distributed by Horizon as long as their service center remains untouched.
12-11-2013, 07:42 PM
#62
The company was purchased by management running the company. The transaction puts Horizon in an even better position and is expected to bring new opportunities. I've flown both JR and Spektrum (from day one with the DX-6) and have seen Horizon products benefit so many modelers at indoor and outdoor events. I am very excited about their commitment to continuing investment in developing innovative products. Looking forward to Horizon updates as soon as they have more information to share.
Regards,
Don Szczur
Team Horizon Sponsored Pilot (Air)
Regards,
Don Szczur
Team Horizon Sponsored Pilot (Air)
Dear Valued Partner,
I am very pleased to announce that our board of directors has signed an Agreement under which Horizon Hobby will be sold to an investor group led by myself. The transaction is expected to close sometime in early January. The investment group includes Armory Capital, LLC, a local, family-owned Champaign company, and Mill City Capital L.P. located in Minneapolis. These two investors have deep experience with management-led acquisitions.
I’m excited to share this news with you, because it’s all about growth and continuity and a bright future. Both Armory Capital and Mill City Capital are long-term investors who are uniquely aligned with Horizon’s culture, core values and strategy. This transaction will give us a capital structure that will enable us to manage through industry-wide challenges and grow well into the future. The company you have come to know and rely on is not changing. The management team will remain in place through this transaction and there are no planned layoffs with this transaction.
You can expect that this change will be seamless to you. Our commitment to investing in developing exciting, innovative products that have the potential to grow the hobby has never been greater. I’m especially proud of the fact that our new investors agree with our approach to business and will enable us the best opportunity to stay true to our values and culture.
We appreciate your business and your continued support very much. Together, we can help even more people have fun with hobbies. We will update you as soon as we have more information to share.
If you have any questions, please contact your sales rep or any of the sales management team.
Have a prosperous and enjoyable December.
Sincerely,
Joe Ambrose
CEO of Horizon Hobby Inc
I am very pleased to announce that our board of directors has signed an Agreement under which Horizon Hobby will be sold to an investor group led by myself. The transaction is expected to close sometime in early January. The investment group includes Armory Capital, LLC, a local, family-owned Champaign company, and Mill City Capital L.P. located in Minneapolis. These two investors have deep experience with management-led acquisitions.
I’m excited to share this news with you, because it’s all about growth and continuity and a bright future. Both Armory Capital and Mill City Capital are long-term investors who are uniquely aligned with Horizon’s culture, core values and strategy. This transaction will give us a capital structure that will enable us to manage through industry-wide challenges and grow well into the future. The company you have come to know and rely on is not changing. The management team will remain in place through this transaction and there are no planned layoffs with this transaction.
You can expect that this change will be seamless to you. Our commitment to investing in developing exciting, innovative products that have the potential to grow the hobby has never been greater. I’m especially proud of the fact that our new investors agree with our approach to business and will enable us the best opportunity to stay true to our values and culture.
We appreciate your business and your continued support very much. Together, we can help even more people have fun with hobbies. We will update you as soon as we have more information to share.
If you have any questions, please contact your sales rep or any of the sales management team.
Have a prosperous and enjoyable December.
Sincerely,
Joe Ambrose
CEO of Horizon Hobby Inc
12-11-2013, 11:40 PM
#63
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The company was purchased by management running the company. The transaction puts Horizon in an even better position and is expected to bring new opportunities. I've flown both JR and Spektrum (from day one with the DX-6) and have seen Horizon products benefit so many modelers at indoor and outdoor events. I am very excited about their commitment to continuing investment in developing innovative products. Looking forward to Horizon updates as soon as they have more information to share.
Regards,
Don Szczur
Team Horizon Sponsored Pilot (Air)
Regards,
Don Szczur
Team Horizon Sponsored Pilot (Air)
12-12-2013, 03:54 AM
#64
I have to say, I don't understand all of the pathetic diatribe. I wish Mr. Ambrose and his new team success, I realize the verdict is not in, however; It might be a little premature or childish to vilify and condemn anyone or any group before the results are known. Thank God there are still private individuals willing to risk there own money (in support of our hobby)....geez, what a concept...good luck guys!
I wish them the best as well, however based on historical evidence chances are change is coming for that company that might be detrimental for many concerned. Hopefully it will be good change for all concerned, however historical facts show that it rarely is good for all concerned when money is a driving force and normally money does drive the changes. Not many companies pop cash out of their pockets and change for the betterment of all concerned just for the sake of changing.
12-12-2013, 05:50 AM
#65
I think some grown up people are quite naive if they fail to realize that what drives ALL business IS money. Unless you have a non-for profit organization. Change of ownership sometime fail, but in most cases it does grow business, or brings business back to life. Having the ex-CEO of the company investing in it as a investor group leader, seems to be a good thing in my opinion. He knows what he is getting into, and he did lead a company that was successful, he would not invest in something if he would think it will fail. There is a place in the market for Horizon, and they have a nice share of this market. They will be around, no doubt.
Gerry
Gerry
12-12-2013, 06:23 AM
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It could go either way, look at Ford, they bought Jaguar, Land Rover and Volvo and got rid of them because they were money pits, Tata took over Jaguar/Land Rover and is now making heaps of cash. BMW couldn't make money out of Rover/Jaguar neither, but kept the Mini brand which does very well.
12-12-2013, 07:30 AM
#68
Well the problem with the "investment group" is that profits are topline priorities usually to the detriment of the company's CS. The bean counters don't care about the company reputation and doing the kind of support work that Horizon has grown well known for, costs money. It can be viewed as an investment in the company future or as an unneccessary extravagence by the new owners. Just because a member of the investment group is a current honcho with Horizon, does not mean he'll get to run the company as he sees is best.
You don't see guys like QQ and John Redman abandoning ship for no good reason and who knows how many other employees have left, I only know a couple but there's probably more?
No I think this will be similar to what happened when Hobbico picked up the rights to Futaba in the USA. You can still buy the stuff and there is a service center but if you think they are going to do anything extra for you, you are mistaken. I think Horizon will be headed the same way and it's a shame....
You don't see guys like QQ and John Redman abandoning ship for no good reason and who knows how many other employees have left, I only know a couple but there's probably more?
No I think this will be similar to what happened when Hobbico picked up the rights to Futaba in the USA. You can still buy the stuff and there is a service center but if you think they are going to do anything extra for you, you are mistaken. I think Horizon will be headed the same way and it's a shame....
12-12-2013, 03:06 PM
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The company was purchased by management running the company. The transaction puts Horizon in an even better position and is expected to bring new opportunities. I've flown both JR and Spektrum (from day one with the DX-6) and have seen Horizon products benefit so many modelers at indoor and outdoor events. I am very excited about their commitment to continuing investment in developing innovative products. Looking forward to Horizon updates as soon as they have more information to share.
Regards,
Don Szczur
Team Horizon Sponsored Pilot (Air)
Regards,
Don Szczur
Team Horizon Sponsored Pilot (Air)
12-12-2013, 05:24 PM
#72
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Business 101. "We love the way the company is doing things and we are not going to change anything." "I'm from the govenment and I am here to help you!" Slogans, both. It's a good company with some great products. Who knows how it will shake out. Hobby KIing and the like have really put the pressure on people in the biz. I remember working in a hobby shop a few years back and listening to the owner howl because Sig insisted on a minimum order. Part of the biz. Lets wish them the best and hope for same. wallace.tharp
Last edited by wallace.tharp; 12-12-2013 at 05:26 PM. Reason: boo boos
12-12-2013, 05:37 PM
#73
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Well. I know what I see. I see Horizon's product line of ARFs quickly shrinking. 30cc P-47 - gone. 1/4 scale cub - gone. Pulse XT120 - gone (yet ironically, still advertised on their web site). 1/4 scale pt-19 (Seagull) - gone. 1/4 scale Taylorcraft - gone. Plenty more examples that just don't come to mind at the moment. On top of that, I never seen so many products out of stock. I was curious since these types of issue are atypical of Horizon, but things are starting to make sense. They don't seem to be as healthy as they have been. I hope things don't get worse.
12-12-2013, 06:40 PM
#74
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Well. I know what I see. I see Horizon's product line of ARFs quickly shrinking. 30cc P-47 - gone. 1/4 scale cub - gone. Pulse XT120 - gone (yet ironically, still advertised on their web site). 1/4 scale pt-19 (Seagull) - gone. 1/4 scale Taylorcraft - gone. Plenty more examples that just don't come to mind at the moment. On top of that, I never seen so many products out of stock. I was curious since these types of issue are atypical of Horizon, but things are starting to make sense. They don't seem to be as healthy as they have been. I hope things don't get worse.
12-13-2013, 04:31 AM
#75
It wasn't too long ago when modelers were complaining about there being too many arfs, not enough kits. The phenomena that you are describing is not unique to HH. You can see the same thing going on with Tower and the smaller guys like Extreme Flight...they get inventory...it sells out....they get inventory...it sells out. You save your coins and jump in before it sells out. Good luck with the world conformed to what might be optimal for you. We might be close to modelers Utopia here and now in 2013....never so many products available...electrics, gas, glow, radials (glow and gas), contra-rotating, inline, horizontally opposed, arfs, plans, kits, balsa, fiberglass, and composite, 72mhz, 2.4ghz, synthesized, DSMx, DMSS, FASSTest, ect, ect, ect. Amazing stuff coming out every year. What did we have for products 20 years ago. We have had a revolution in products and yet there are those who insist the cup is half empty and getting smaller all the time.....hilarious!
No one is as blind as the person that does not want to see...
Gerry