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Author Topic: [Hobbico] Files For Bankruptcy Protection 1/10/18  (Read 827 times)

Offline Gadgetron_3000

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[Hobbico] Files For Bankruptcy Protection 1/10/18
« on: January 12, 2018, 10:34:06 am »
Hi, Everyone!

Troubling news for the hobby industry...Hobbico filed for bankruptcy protection two days ago.

Hobbico says will try to avoid layoffs and will continue operating throughout the bankruptcy process, but it does plan to sell the company.

In regards to the hobby we all here love, Hobbico owns Revell-Monogram which it acquired in May 2007 and also Revell Germany which was acquired in 2012.  Hobbico is also the parent company of Great Planes Model Distributors and Tower Hobbies.

According to Wikipedia: "The company distributes over 150 brands of hobby products including about 30 proprietary product brands.  Proprietary brands include: Axial, ARRMA, Dromida, Team Durango, dBoots, Revell, Monogram, Top Flite, Great Planes, AquaCraft Models, FlightPower, Heli-Max, SuperTigre, O'Donnell Fuel, Duratrax, RealFlight, MonoKote, Carl Goldberg Products, ElectriFly, Coverite, Dynaflite, Flyzone, MuchMore Racing, LiFeSource, Tactic, VS Tank, Estes Industries, Proto-X, TrakPower and others.  It is the exclusive distributor for Futaba radio control products in North and South America, for O.S. Engines in North America and HPI Racing, Italeri, Novak Electronics and Nine Eagles in North and South America."

Lets hope Hobbico can get things straightened out, and that a future buyer can move the company into profitability.

A local news report about this can be read here: http://www.news-gazette.com/news/local/2018-01-10/hobbico-files-bankruptcy-layoffs-next.html.

Stay tuned...
"They've done studies, you know.  60% of the time, it works every time."

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Offline starsiegeplayer

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Re: [Hobbico] Files For Bankruptcy Protection 1/10/18
« Reply #1 on: January 12, 2018, 01:06:52 pm »
Not good news  :o

Offline ImWolf

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Re: [Hobbico] Files For Bankruptcy Protection 1/10/18
« Reply #2 on: January 12, 2018, 03:23:33 pm »
I read a report a couple of days back that bankruptcy filings are up 107% by businesses here in the US compared to the same period one year ago.

Depending on who's metric you trust, there are between 94 and 102 million (normally employed) people out of the work force. This has been steadily growing over the last ten years.

Because of this, credit card dept is skyrocketing since these people still need to eat and pay bills, but don't have the income they used to and are charging the expenses.

Mass quantities of these poor folks are eventually going to default on their loans, (and once again) have any real assets they own seized to pay the debts.

Where I live I see empty strip malls and closed down restaurants all over the place.

Just think how bad things might be if we were not in this "turbo-charged, fantastic recovery".

Good luck to Hobbico, Sears, Kmart, Ford, GM, Macy's, Best Buy, etc, etc, etc.....
Just think of what my life might be.....   In a world like I have seen!

Offline Gadgetron_3000

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Re: [Hobbico] Files For Bankruptcy Protection 1/10/18
« Reply #3 on: March 30, 2018, 04:28:38 pm »
Hi, Everyone!

There's been an update on the bankruptcy protection developments for Hobbico which filed for Chapter 11 back in January 2018.

This past week, Horizon Hobby has agreed to buy several of Hobbico's RC business units for a combined $18.8-million.  The deal would get Hobbico's Great Planes and Tower Hobbies divisions and brands including Axial and Arrma.  Horizon will also not assume any of Hobbico's debts or other liabilities.

Hobbico's model rocket business, Estes Industries, which it acquired back in 2010, also received a $6-million purchase agreement bid.

Unfortunately, neither of these purchase agreements include United Model, Revell North America, or Revell Germany, so the fates of those businesses are still up in the air.

Let's all hope that some other company will eventually swoop in and save the day for those units.

You can read a little more about the updates here:

http://www.news-gazette.com/news/local/2018-03-24/horizon-hobby-agrees-make-188m-bid-hobbico-units.html

"They've done studies, you know.  60% of the time, it works every time."

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Offline LynnInDenver

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Re: [Hobbico] Files For Bankruptcy Protection 1/10/18
« Reply #4 on: March 31, 2018, 10:38:13 am »
That's kind of concerning that there hasn't seemed been a lot of interest in purchasing either Revell; each one basically comes with a distribution network, which was part of why Hobbico had bought them to begin with. Unless someone wants to do a "pick it clean" purchase and basically shear off the distribution from the scale model IP. Is it just that the hobby is so much less than it was that a notable brand is no longer worth purchasing? The  Northern hemisphere Star Wars and European Star Trek licenses not worth it in the sale? Although on the former, I could see Bandai having interest in the regional Star Wars licenses, but not in the rest of the Revell baggage, and hence might be more worth taking the risk of Revell folding versus being bought by someone else in order to negotiate with Disney for it (hey, we just happen to have more kits ready to go, and a willingness to sell to that market much more directly...).

Offline Bierce Mountain

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Re: [Hobbico] Files For Bankruptcy Protection 1/10/18
« Reply #5 on: April 09, 2018, 06:11:03 am »
The  Northern hemisphere Star Wars and European Star Trek licenses not worth it in the sale?

I can't speak to the Star Trek license, but I wouldn't be surprised if the Star Wars license is nontransferable and would need to be renegotiated. Lucasfilm was tough enough on their own, and I can't imagine Disney being more accommodating.

A friend of mine knows the guys at Atlantis Models who are planning on attending the auction where Hobbico is going sell all their molds. That was a few weeks ago and the auction might have already taken place.

Paul
My favorite model is the one I haven't bought yet.

Offline Gadgetron_3000

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Re: [Hobbico] Files For Bankruptcy Protection 1/10/18
« Reply #6 on: April 15, 2018, 05:56:24 pm »
Hi, Everyone!

There's been an update on the bankruptcy protection developments for Hobbico which filed for Chapter 11 back in January 2018.

  • Auction for Hobbico's remaining assets - including United Model, Revell North America, and Revell Germany - was temporarily suspended during the final week of March 2018.
  • One group submitted a bid for Revell Germany during the first week of April 2018.
  • Another group submitted a bid for both Revell North America and Revell Germany during the first week of April 2018. This German financial investment entity calls itself "Blitz 18-313 Gmbh" (also "Quantum Capital Partners") and its $3.9-million bid was approved during the second week of April 2018. This may seem like a low amount or even a bargain, BUT...Blitz will be required to pay $1.3-million in unpaid licensing fees (of which $1-million goes to Disney) and they will also have to repay up to $41-million in inter-company loans that Hobbico made to Hobbico Germany and Revell Germany.
  • Blitz 18-313 Gmbh / Quantum Capital Partners' $3.9-million approved price included $800,000 in shares for Hobbico Germany, about $50,000 for intellectual properties and trademarks, about $3-million for existing inventories, and about $50,000 for tools and molds. Yes, it is REALLY sad that all of Revell and Revell Germany's tools and molds were worth only $50,000!

Stay tuned...
« Last Edit: April 15, 2018, 10:36:40 pm by Gadgetron_3000 »
"They've done studies, you know.  60% of the time, it works every time."

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Offline starsiegeplayer

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Re: [Hobbico] Files For Bankruptcy Protection 1/10/18
« Reply #7 on: April 15, 2018, 09:43:59 pm »
Thanks for posting the news on this.

Offline Gadgetron_3000

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Re: [Hobbico] Files For Bankruptcy Protection 1/10/18
« Reply #8 on: April 16, 2018, 12:32:27 pm »
Hi, Everyone!

Here are more updates on the bankruptcy protection developments for Hobbico which filed for Chapter 11 back in January 2018.

From German news today, it looks like the following will happen with Revell...

  • With Quantum Capital Partners being a German company, Revell Germany will continue to operate normally.  Hobbico's bankruptcy proceedings "does not affect the operating business in any way," according to a company statement.
  • Since Quantum Capital Partners acquired pretty much all assets and trademarks from Revell North America with their $3.9-million approved bid, Revell Germany will consider this as part of an expansion process for them.
  • Quantum Capital Partners and Revell Germany intend to continue having a presence in North America, but I'm sure new business ties will have to be made and existing ones would have to be renegotiated.

Also, according to court documents filed during the second week of April 2018, once the Quantum Capital Partners deal closes, Hobbico has less than a week to remove all references to Revell.  At that rate, I doubt a U.S. branded Revell under Hobbico will survive past the end of this spring or into this summer.

Stay tuned...
"They've done studies, you know.  60% of the time, it works every time."

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Offline greg

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Re: [Hobbico] Files For Bankruptcy Protection 1/10/18
« Reply #9 on: April 25, 2018, 01:40:09 am »
Revell USA thought they could just churn out the same old outdated model kits over and over again, believing in this business model. They would repackage kits from other companies, such as in terms of Star Wars the Fine Molds kits and the Zvezda Star Destroyer. But their own stuff was lacking. Airfix has been releasing new P-40 Warhawks, while Revell keeps repopping the same old Monogram P-40 molds from the 1960s.

According to this article on FSM, North American distribution for Hasegawa and Italeri are up in the air...

 




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