Looks a lot worse than some are saying:
Hobbico files for bankruptcy; layoffs next? News-Gazette.com
Hobbico has also closed it's Reno wharehouse
It has nothing to do with young people being lazy. Airplanes have lost their luster and what young person wants to go to an old folks home meeting (RC club meeting)? The hobby is dying in many ways, but it's not just the fault of young people. I had to bust out of the old folks home myself, quit my local club.
Maybe someone that knows more than I do can make better sense of this, but the full scale side of things is dying as well.