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Hobbico has Filed For Bankruptcy Protection

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Old 01-11-2018, 04:52 AM
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ForcesR
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Default 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
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Old 01-11-2018, 10:12 AM
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A refusal to buy from China means it can't compete. Damn shame too. I guess some of those HK haters will secretly have to change their tune.
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Old 01-11-2018, 10:13 AM
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One wonders how HobbyTown USA keeps in business.
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Old 01-11-2018, 10:51 AM
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Or Bannahobbies!
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Old 01-11-2018, 04:27 PM
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Quote:
Originally Posted by rgburrill View Post
A refusal to buy from China means it can't compete. Damn shame too. I guess some of those HK haters will secretly have to change their tune.
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.
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Old 01-11-2018, 04:34 PM
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Originally Posted by Hydro Junkie View Post
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.
Don't order it from the China warehouse instead of the USA warehouse Customs takes longer than actual shipping on some things.
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Old 01-11-2018, 04:37 PM
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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.
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Old 01-11-2018, 05:44 PM
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If their management team is any good it shouldn't effect business as usual, that's why they call it protection. Good luck Hobbico!
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Old 01-11-2018, 06:24 PM
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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 ;-)

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Old 01-12-2018, 06:24 AM
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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.

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Old 01-12-2018, 07:36 AM
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Quote:
Originally Posted by DaveHickey View Post
If their management team is any good it shouldn't effect business as usual, that's why they call it protection. Good luck Hobbico!
If their management team were any good, they wouldn't be in this position!
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Old 01-12-2018, 10:13 AM
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Quote:
Originally Posted by rgburrill View Post
One wonders how HobbyTown USA keeps in business.
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.
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Old 01-12-2018, 06:45 PM
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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.
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Old 01-13-2018, 01:52 PM
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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.
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Old 01-13-2018, 01:53 PM
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Quote:
Originally Posted by dionysusbacchus View Post
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.
Yes, I agree. Model aviation and general aviation have lost their luster. I think my last post can explain part of the reason. I had once hoped that R/C could help me practice my flying skills for full-scale. But it just didn't turn out that way. It's why I quit so many years ago.
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Old 01-13-2018, 02:40 PM
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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.
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Old 01-14-2018, 06:45 AM
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Hobbico will not be fine...
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Old 01-14-2018, 08:21 AM
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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
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Old 01-14-2018, 06:44 PM
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Quote:
Originally Posted by Hydro Junkie View Post
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.
If you need something "now" don't order from the International warehouse. They clearly state that it can take up to 39 days to receive your shipment. I ordered an item in Dec that isn't here yet....but it's 10 degrees and snow outside so who cares.
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Old 01-14-2018, 11:12 PM
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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
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Old 01-15-2018, 04:41 AM
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so who cares.
Unfortunately, that about sums it up. Too many folks with that attitude.
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Old 01-15-2018, 06:20 AM
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Quote:
Originally Posted by rgburrill View Post
A refusal to buy from China means it can't compete. Damn shame too. I guess some of those HK haters will secretly have to change their tune.
I think they do buy from China DLE and most of there ARFs
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Old 01-15-2018, 07:22 AM
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Quote:
Originally Posted by flyinwalenda View Post
Unfortunately, that about sums it up. Too many folks with that attitude.
I didn't realize I have an "attitude ". HK said it would take over a month to get the part and I'm OK with that because I won't be able to fly until March.
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Old 01-15-2018, 07:53 AM
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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!!!
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Old Today, 07:13 PM
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I ordered my items from HK on 24 Dec and received them today 18 Jan. That's 25 days....exactly as promised by HK when I ordered.
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