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Hobbico’s demise and how it affects the Hobby industry


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#1 oyoy5

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Posted 22 February 2018 - 04:34 AM

Was speaking with a Hobby Town store owner and he was stating how much money Hobbico owes a lot of different folks as well as retired employees. He stated based on what he has heard he does not feel there is much chance they survive and his fear is the ripple effect it will have overall to the model train planes and RC. He feels they will sell of the decent lines and close up the others, just hope Revell Germany keeps on doing hat they are doing once a new buyer is found.

#2 vince14

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Posted 22 February 2018 - 08:00 AM

Revell Germany is completely seperate to Hobbico and is not affected by their problems.


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#3 Guest_The Southern Bandit_*

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Posted 22 February 2018 - 08:12 AM

Would hate to see Revell go, who will this effect in our hobby I wonder?



#4 Rick Griewski

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Posted 22 February 2018 - 11:53 AM

IIRC there is already a discussion covering this topic with all angles covered. With no access to the legal paperwork we all just get to wait and see.
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Posted 22 February 2018 - 01:52 PM

I would worry about those peoples jobs before I worried about my hobby. 


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#6 oyoy5

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Posted 22 February 2018 - 02:15 PM

Yes they have 700 employees and that’s the most important aspect in all of this.
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#7 Old Dog

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Posted 22 February 2018 - 02:18 PM

While it may not effect ROG directly if ROG kits are distributed in the US by Hobbico it may effect their availability here !



#8 Dave Williams

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Posted 22 February 2018 - 03:05 PM

Either this has an effect on getting new kits from RoG, or it doesn’t. No way to know until it plays out, and no value in worrying about it. If people want to hoard P-51s or whatever, more power to them. I know that I have enough kits and there are enough other manufacturers out there that I can easily survive if no more kits are ever made by a Hobbico company.

I see no value in worrying or guessing about something that I have no control over. Better things to do.

Edited by Dave Williams, 22 February 2018 - 03:08 PM.

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#9 Adam Maas

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Posted 22 February 2018 - 03:52 PM

Revell Germany is completely seperate to Hobbico and is not affected by their problems.

Unfortunately that's not the case, RoG is a subsidiary of Hobbico. There's two effects on RoG.

1. Distribution - Hobbico is the distributor for North American markets (the good news is that RoG has to keep shipping to Hobbico regardless of any payment issues)
2. Ownership - Hobbico owns RoG and any split up of Hobbico assets would indeed affect RoG.


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#10 Out2gtcha

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Posted 22 February 2018 - 04:36 PM

Unfortunately that's not the case, RoG is a subsidiary of Hobbico. There's two effects on RoG.

1. Distribution - Hobbico is the distributor for North American markets (the good news is that RoG has to keep shipping to Hobbico regardless of any payment issues)
2. Ownership - Hobbico owns RoG and any split up of Hobbico assets would indeed affect RoG.

 

 

While number 1 is possibly true (even that remains to be seen yet), number 2 is however not true.

 

Revell of Germany has put out a direct press release stating unequivocally that ROG is not effected by the US filing of Hobbico for Chapter II.

 

https://thekitbox.wo...ss-operations/ 

 

 

"Because Hobbico’s bankruptcy filing was made in the United States and is strictly limited to the company’s U.S. operations, Revell-Germany is unaffected. Additionally, Revell-Germany suppliers, vendors and customers will not be impacted by the process. 
“Our Revell-Germany operation is not filing for bankruptcy protection,” said Louis Brownstone, President of Hobbico, Inc. “It will continue to provide the same high-level of service to our customers. We are optimistic that the filing will better position the U.S. operations for future growth.” 
“Most important for all of us at Revell-Germany, we continue to operate ‘business as usual’ moving forward,” said Stefan Krings, President of Revell-Germany. “Looking ahead, our top priorities remain continuing to build our business with our high-valued vendors and suppliers, while simultaneously providing the same high-level of product support to our customers.” "


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#11 BiggTim

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Posted 22 February 2018 - 04:44 PM

I prefer to wait 2 years, then comment. It makes me look smarter.


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#12 Out2gtcha

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Posted 22 February 2018 - 05:37 PM

I prefer to wait 2 years, then comment. It makes me look smarter.

 

 

Im simply passing on a direct quote from ROG


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#13 Adam Maas

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Posted 22 February 2018 - 05:39 PM

While number 1 is possibly true (even that remains to be seen yet), number 2 is however not true.

 

Revell of Germany has put out a direct press release stating unequivocally that ROG is not effected by the US filing of Hobbico for Chapter II.

 

https://thekitbox.wo...ss-operations/ 

 

 

"Because Hobbico’s bankruptcy filing was made in the United States and is strictly limited to the company’s U.S. operations, Revell-Germany is unaffected. Additionally, Revell-Germany suppliers, vendors and customers will not be impacted by the process. 
“Our Revell-Germany operation is not filing for bankruptcy protection,” said Louis Brownstone, President of Hobbico, Inc. “It will continue to provide the same high-level of service to our customers. We are optimistic that the filing will better position the U.S. operations for future growth.” 
“Most important for all of us at Revell-Germany, we continue to operate ‘business as usual’ moving forward,” said Stefan Krings, President of Revell-Germany. “Looking ahead, our top priorities remain continuing to build our business with our high-valued vendors and suppliers, while simultaneously providing the same high-level of product support to our customers.” "

Please read that announcement again, they are very clearly stating that there are no OPERATIONAL effects on RoG. Revell of Germany can continue to operate while Hobbico is under Chapter 11, as they are an independent subsidiary operating in a different country. The only potential operational effect is on their North American distribution, and that is not guaranteed..

However Hobbico remains the owner, and any divestment of Hobbico assets, either as part of operating under chapter 11, exiting chapter 11 or moving to chapter 7 and a shutdown could potentially effect RoG as it is a Hobbico asset. As such, my previous statement #2 is most certainly accurate and not contradicted at all by the press release.


Direct from the Press Release

 

Although Revell-Germany is not part of the filing in the United States and will continue to operate its business, the sale of Hobbico could have future implications for Revell-Germany. The decision by Hobbico to file for bankruptcy and pursue a sale of the company allows Hobbico the opportunity to reduce their debts, restructure their liabilities, attract new capital investment and position the overall company for future growth.

Edited by Adam Maas, 22 February 2018 - 05:43 PM.


#14 Out2gtcha

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Posted 22 February 2018 - 05:51 PM

Please read that announcement again, they are very clearly stating that there are no OPERATIONAL effects on RoG. Revell of Germany can continue to operate while Hobbico is under Chapter 11, as they are an independent subsidiary operating in a different country. The only operational effect is on their North American distribution, and that is not guaranteed..

However Hobbico remains the owner, and any divestment of Hobbico assets, either as part of operating under chapter 11, exiting chapter 11 or moving to chapter 7 and a shutdown could potentially effect RoG as it is a Hobbico asset.


Direct from the Press Relea

 

 

Take what you want from it, but as stated in the press release, the US chapter 11 is wholly separate from ROG, and when the company themselves state "Revell-Germany is unaffected" that means just that.

I am not pretending to know what will happen in the future, but when that same company also states "suppliers, vendors and customers will not be impacted by the process" I take that as they will be unaffected; IE no customers will be effected by the chapter 11 process.

 

Future sell off of the assets nor anything ROG does in the future does not mean ROG is going anywhere, and anyone's knowledge of what the future will hold is moot. In answering the OPs question as to "how it effects the hobby" is currently effectively answered by ROG, in that it currently does not effect them. 

 

I should clarify, that Im only speaking how this effects ROG here  and not the overall scope of the hobby in general, as obviously other assets including model rockets trains and R/C stuff as well as Revell USA will most definitively be effected in some way currently. 


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#15 BiggTim

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Posted 22 February 2018 - 06:21 PM

Im simply passing on a direct quote from ROG

 

I know, buddy, I was just being a smartass! :)


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Completed in 2017: Trumpeter Bf109E-4, 1/16 Waffen SS figure

Previous Completions: Hasegawa F6F-3 Hellcat, Hase Me-163 Jagerfaust , 1/16 Fokker DVII Scratchbuilt Wooden Skeleton

 





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