Hobbico has Filed For Bankruptcy Protection
01-11-2018, 04:52 AM
#1
Thread Starter
Hobbico has Filed For Bankruptcy Protection
For those who are not yet aware, Hobbico filed for bankruptcy protection on Wednesday! Topflite is one of the brands owned by Hobbico! Delivery of the new F6F Hellcat maybe in peril...!
http://www.news-gazette.com/news/loc...offs-next.html
Brands under Hobbico banner.
https://www.hobbico.com/brands.php
http://www.news-gazette.com/news/loc...offs-next.html
Brands under Hobbico banner.
https://www.hobbico.com/brands.php
01-11-2018, 04:27 PM
#5
Not likely. Too many people have been burned by HK to ever go back. When someone has to wait over a month for something, holding up a project, they're not likely to go back to that vendor if they can get a similar item, usually with higher quality, from someplace else with much less wait time.
01-11-2018, 04:34 PM
#6
My Feedback: (28)
Not likely. Too many people have been burned by HK to ever go back. When someone has to wait over a month for something, holding up a project, they're not likely to go back to that vendor if they can get a similar item, usually with higher quality, from someplace else with much less wait time.
01-11-2018, 04:37 PM
#7
Yes, it's more than a stretch to try and compare Tower with HK. Tower with great customer service and HK with , well, customer no-service.
I remember Hobbico buying up a lot of small companies and not doing much to continue the product lines...probably to eliminate competition . So all of that really didn't turn out that well for them and especially for the companies they bought.
I hope someone can take over and keep them alive in some fashion as they along with Horizon are large players in keeping what's left of the local hobby shops alive.
I remember Hobbico buying up a lot of small companies and not doing much to continue the product lines...probably to eliminate competition . So all of that really didn't turn out that well for them and especially for the companies they bought.
I hope someone can take over and keep them alive in some fashion as they along with Horizon are large players in keeping what's left of the local hobby shops alive.
01-11-2018, 06:24 PM
#9
I was a bit alarmed initially, but after some light reading and conversation I am now less concerned. Hobbico will be fine and it is a pretty common business practice. I am not a businessman nor do I care that much to learn all the in and outs, but I do care about the hobby enough to investigate. It will take time to restructure and is allowed up to two years for the case to be settled. If there wasn't a way out they would't have filed chapter 11. The Hellcat release is not in peril and will be on our doorsteps soon enough! However, if they are unsucessful....I guess I'll plan on ordering some arf's this fall just in case ;-)
Last edited by spitfire66; 01-11-2018 at 06:26 PM.
01-12-2018, 06:24 AM
#10
We should be alarmed. With the downside being underwater -$450M ($50M in Assets & $500M in Liabilities)...that will be no easy hurdle to overcome. Somebody cash rich and with a different vision will have to jump in to make it succeed. Like all of you, hope the company survives in some way, shape, and form and the employees prosper.
Oriole
Oriole
01-12-2018, 07:36 AM
#11
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01-12-2018, 10:13 AM
#12
Hobbytown is not owned by Hobbico. Hobbytown is a private business with franchises across the US.
Most carry a lot of different things then just Rc airplanes and cars. The one nearby has been stocking mostly FMS and assorted things from Horizon as far as planes go. They'll of course order parts from Tower or Hobbico brands, but the majority of Rc related stuff is cars/4x4 type things and drones.
Our store also sells pool tables, plastic models, trains, etc.
Most carry a lot of different things then just Rc airplanes and cars. The one nearby has been stocking mostly FMS and assorted things from Horizon as far as planes go. They'll of course order parts from Tower or Hobbico brands, but the majority of Rc related stuff is cars/4x4 type things and drones.
Our store also sells pool tables, plastic models, trains, etc.
01-12-2018, 06:45 PM
#13
Hobbico also recently announced it will close its 200,000-square-foot distribution facility in Reno, Nev., on Feb. 28.
I recently talked to an employee in the local Hobbytown and he said the last 3 years have been brutal. The writing is on the wall, model aviation and aviation in general has lost it's luster.
I recently talked to an employee in the local Hobbytown and he said the last 3 years have been brutal. The writing is on the wall, model aviation and aviation in general has lost it's luster.
01-13-2018, 01:52 PM
#14
Has anybody looked at Tower Hobbies website lately? Very little is left in the way of model airplanes, and most parts and accessories are on back order. Stiff competition from drones, I believe contributed to much of this. It's only a matter of time before other companies end up in the same situation. Had the FAA granted my medical certificate back in 1995 instead of denying it, I would have embraced the R/C hobby and still be active today. Unfortunately, it lost most of its value because of the heavy-handedness of the FAA. I didn't want to play with what I thought were toys. I wanted to fly the real thing. Maybe I can get a Part 107 and fly a drone legally one day. But if I don't get that certificate granted, I guess I'm out forever. God speed, Hobbico and Tower Hobbies.
01-13-2018, 01:53 PM
#15
Hobbico also recently announced it will close its 200,000-square-foot distribution facility in Reno, Nev., on Feb. 28.
I recently talked to an employee in the local Hobbytown and he said the last 3 years have been brutal. The writing is on the wall, model aviation and aviation in general has lost it's luster.
I recently talked to an employee in the local Hobbytown and he said the last 3 years have been brutal. The writing is on the wall, model aviation and aviation in general has lost it's luster.
01-13-2018, 02:40 PM
#16
My Feedback: (2)
The RC demographic has been shrinking for years... The smart planners would have accounted for that and began to reduce the size of the business long ago as best they could.
Ultimately it's reached critical mass and big problems. Predictable to be sure.
I don't think Drones or any other product is the reason for tower's issues.
Look at the AMA Membership.. Look how its shrunk over the years..
Right there is the explanation.
Ultimately it's reached critical mass and big problems. Predictable to be sure.
I don't think Drones or any other product is the reason for tower's issues.
Look at the AMA Membership.. Look how its shrunk over the years..
Right there is the explanation.
01-14-2018, 08:21 AM
#18
One down side of being employee owned is the lack of capital reserves and deep pocket backing . Unfortunately there also seems to be a high level of mismanagement being that the Feds are investigating such claims
01-14-2018, 06:44 PM
#19
Not likely. Too many people have been burned by HK to ever go back. When someone has to wait over a month for something, holding up a project, they're not likely to go back to that vendor if they can get a similar item, usually with higher quality, from someplace else with much less wait time.
01-14-2018, 11:12 PM
#20
I WOULD CARE!!!!!!!!!!!!!!!!!!!!
When I order something, I expect prompt service. If I'm to a point that something I ordered two weeks ago is holding me up, Then I'm going to cancel that order and find someplace else to get it from
When I order something, I expect prompt service. If I'm to a point that something I ordered two weeks ago is holding me up, Then I'm going to cancel that order and find someplace else to get it from
01-15-2018, 07:53 AM
#24
You don't have an attitude Radford. Some people can plan ahead, such as yourself and I, and order stuff from HK knowing it might take a month to show up.
I just received a package from HK containing a new solder iron, some plug wires, etc. I can still work on my.... Wait for it... Top Flite 50cc Spitfire in the meantime. Yep... TF... From hobbico... Bought through my local Hobbytown awhile ago powered with batteries from.... Oh yeah HK!!!
I just received a package from HK containing a new solder iron, some plug wires, etc. I can still work on my.... Wait for it... Top Flite 50cc Spitfire in the meantime. Yep... TF... From hobbico... Bought through my local Hobbytown awhile ago powered with batteries from.... Oh yeah HK!!!