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Hobbico Chapter 11 Bankruptcy Filing

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  • Member since
    July 2004
  • From: Sonora Desert
Posted by stikpusher on Tuesday, January 16, 2018 10:26 PM

GMorrison

Plan to die here.

On the phone now with the kid.

I think the single biggest issue we have is health care.

Anyhow, life seems to be the ball in pinball these days.

 

I used to think that I would stay here the rest of my days as well. 

Health Care in CA is less of a problem than cost of living and taxes. 1/3 of my check goes to taxes. I mentioned that in Florida to some locals there and they were aghast. No income tax in that state. Their revenue comes from sales tax, property tax, and business taxes. And businesses are moving there.

Affordable places to live anywhere outside of a 1-2 hour commute each way is another big one...

and with Prop 47, Prop 64, and AB 109, crime will be back to where it was in the 70’s & 80’s prior to three strikes. Mark my words. Many felonies were downgraded to misdemeanors so that the bad guys can’t be kept in jail anymore. It’s catch and release revolving doors. The stats are skewed now because what was reported as a certain classification of crime no longer is. Magically it went away! The last few cop killers in this area should have still been in prison when they killed the officers, but were released under AB 109. I’m sure many citizens have suffered the same fate as well. These trends will not change until something does bigtime in Sacramento.

 

F is for FIRE, That burns down the whole town!

U is for URANIUM... BOMBS!

N is for NO SURVIVORS...

       - Plankton

LSM

 

  • Member since
    September 2012
Posted by GMorrison on Tuesday, January 16, 2018 10:03 PM

Well, California NG would swat you ll aside to get to the rail yards in Roseville.

 

 Modeling is an excuse to buy books.

 

  • Member since
    September 2012
Posted by GMorrison on Tuesday, January 16, 2018 9:53 PM

Plan to die here.

On the phone now with the kid.

I think the single biggest issue we have is health care.

Anyhow, life seems to be the ball in pinball these days.

 Modeling is an excuse to buy books.

 

  • Member since
    July 2004
  • From: Sonora Desert
Posted by stikpusher on Tuesday, January 16, 2018 9:48 PM

GMorrison

My daughter needs to pay for her own health care (with help from dad). Covered California is year round enrollment.

Property tax deduction will be upheld.

State will never go bankrupt.

But first and foremost, it's a beautiful and fullfilling place to live.

I've been all over the world. people say "where are you from?". 

"USA".

"Where in USA?".

"California".

"Oh, we went there. Great place".

DO you know that California's Constitution was bilingual? Why?

Well, first of all Spanish speaking people owned most of it until they got screwed in the courts, but also because the State took a position against slavery.

As a first generation CA native, I love my State like no other place on earth.

We have far more red counties than blue counties, but we have an incredibly diverse population.

The armed forces in the Pacific pass through here. Many return and never go farther.

California contributes more service personnel than any other state, respect offered to Texas as well.

 

 

Yes it is a wonderful place geographically... and the flora and fauna... the population, not so much... I do love the place as well.... 

as far as the red & blue aspects, well the numbers of people vs counties are the reason Sacramento is as it is now.

the armed forces do not pass thru here as much as they used to. Washington is the gateway to wherever now from the West Coast for the Army, Air Force, and a good portion of the Pacific Fleet. Only the Marines remain constant in their start and finish from here. But from fewer locations. Aside from training at Ft Irwin and in central California, the Regular Army is all but gone from here. Most of the Air Force is gone too. The Navy and Marine Corps footprint is much reduced as well. The Guard and reserves outnumber Regular forces in the state.

 

 

F is for FIRE, That burns down the whole town!

U is for URANIUM... BOMBS!

N is for NO SURVIVORS...

       - Plankton

LSM

 

  • Member since
    September 2012
Posted by GMorrison on Tuesday, January 16, 2018 9:28 PM

My daughter needs to pay for her own health care (with help from dad). Covered California is year round enrollment.

Property tax deduction will be upheld.

State will never go bankrupt.

But first and foremost, it's a beautiful and fullfilling place to live.

I've been all over the world. people say "where are you from?". 

"USA".

"Where in USA?".

"California".

"Oh, we went there. Great place".

DO you know that California's Constitution was bilingual? Why?

Well, first of all Spanish speaking people owned most of it until they got screwed in the courts, but also because the State took a position against slavery.

As a first generation CA native, I love my State like no other place on earth.

We have far more red counties than blue counties, but we have an incredibly diverse population.

The armed forces in the Pacific pass through here. Many return and never go farther.

California contributes more service personnel than any other state, respect offered to Texas as well.

 

 Modeling is an excuse to buy books.

 

  • Member since
    July 2004
  • From: Sonora Desert
Posted by stikpusher on Tuesday, January 16, 2018 9:05 PM

Likewise... my family has been in this state for generations as well... late 1800’s at least... but the lunatics are running the asylum now. Sacramento does not need my tax dollars to further it. And my pension will go farther elsewhere. 

 

F is for FIRE, That burns down the whole town!

U is for URANIUM... BOMBS!

N is for NO SURVIVORS...

       - Plankton

LSM

 

  • Member since
    July 2004
  • From: Sonora Desert
Posted by stikpusher on Tuesday, January 16, 2018 6:05 PM

Gerg

 

 
Despite the "red tape" and bothersome "environmental laws" and folks who don't care to have children with birth defects, California has the 6th largest economy in the world. Interesting huh?
 
 

All is not “milk and honey“ here in CA... let’s just say that when I retire in a bit over 2 years, it’s time to leave. The writing is on the wall for those who care to look and read it. This place is a shadow of what it was 30 years ago. Or 50... I keep seeing plenty of great companies and their jobs relocate to other states. 

As far as enamels go, I’ve been using them for nearly 50 years now with no ill health effects. And none of my kids had birth defects. 

 

 

F is for FIRE, That burns down the whole town!

U is for URANIUM... BOMBS!

N is for NO SURVIVORS...

       - Plankton

LSM

 

  • Member since
    November 2009
  • From: Twin Cities of Minnesota
Posted by Don Stauffer on Saturday, January 13, 2018 9:52 AM

The only thing constant in this world is change.  Ask the dinosaurs.

I love enamels, and will continue to use them as long as they are available.  I have used them all my (long) life.  I will be 80 in a few months, and believe I am not too old to learn.

So, I bought a bottle of Vallejo's acrylic metallizer, and tried it to compare it to my normal Alclad.  Worked okay- probably take a few more models to get it to where my Alclad work is, but I will try again.  I am starting to use other acrylics more, just to be ready for the enamel/lacquer apocalypse.

 

Don Stauffer in Minnesota

  • Member since
    January 2013
Posted by BlackSheepTwoOneFour on Saturday, January 13, 2018 9:18 AM

GMorrison

Hmm I have no problem ordering enamels through the mail or ups.

They can be disposed of by opening the jar and letting them get hard.

 

 

 

 

Same here. Never an issue having enamels shipped via Postal Service. However, they cannot be shipped via air. 

I have ordered lacquer paint from Japan BUT.... they are shipped by boat, not airmail.

Outside of the subject but did you know the FAA forbids lithium batteries shipped in cargo holds?

Watch and see why:

https://m.youtube.com/watch?v=kd0EzQaEiZQ

  • Member since
    January 2006
  • From: Pineapple Country, Queensland, Australia
Posted by Wirraway on Friday, January 12, 2018 11:48 PM

Truly sorry to hear this news. My stash is stacked with Revell/Monogram. Always found them better value for money than Tamiya. Time to circle the wagons, take inventory, and stock up while you can. On a side note, an Australian manufacturer of side-cast fishing reels (Alvey) announced its closure after 90 years in production. The resulting flood in orders from people trying to get in before the closure has given them somewhat of a new lease of life.

"Growing old is inevitable; growing up is optional"

" A hobby should pass the time - not fill it"  -Norman Bates

 

GIF animations generator gifup.com

  • Member since
    July 2004
  • From: Sonora Desert
Posted by stikpusher on Friday, January 12, 2018 7:07 PM

Some folks know better than the rest of us Blacksheep. And they will keep telling us that they do until we all live just like them under their rules. 

 

F is for FIRE, That burns down the whole town!

U is for URANIUM... BOMBS!

N is for NO SURVIVORS...

       - Plankton

LSM

 

  • Member since
    September 2012
Posted by GMorrison on Friday, January 12, 2018 7:00 PM

Hmm I have no problem ordering enamels through the mail or ups.

They can be disposed of by opening the jar and letting them get hard.

 

 

 Modeling is an excuse to buy books.

 

  • Member since
    January 2013
Posted by BlackSheepTwoOneFour on Friday, January 12, 2018 6:09 PM

modelmaker66

Enamel paint is bad for the enviroment. It is not "nuts" that are calling for them to be banned, It's people with common sense and a concience toward the planet. They will be unavailable comeletely soon, and for just cause. The times they are a changing friend, get on board.

 

 

And who to say lacquer isn't?  There's still enamel paints out there in all forms - rattle cans, etc... Let's not forget about the other forms of paint products - varnish, polyurethene, latex, etc... 

In all honesty, just how bad or harmful are they for the environment of all those small bottles of hobby enamel paints really are? Disposal of empty bottles? Easy, just take them to Waste Management where they know how to dispose of them properly. 

Don't get me wrong, I'm all for protecting the environment. But eliminating enamel hobby paint line is a bit of an overkill.

  • Member since
    July 2011
  • From: Armpit of NY
Posted by MJames70 on Friday, January 12, 2018 6:08 PM

Murphy's Law

From Revell USA on my Twitter feed:

We want to thank you for your concern regarding the recent news of Hobbico's chapter 11 filing. Revell will continue to run business as usual and continue to provide best in class model kits. We appreciate your support. Please stay tuned for the latest new product releases.

 

 

Typical spin doctoring from companies in trouble and their PR flacks. For what little it's worth, Revell Germany had a very similar statement on its Facebook page today. And it was just as vapid and empty. All it amounts to is 'Everything is fine! Please ignore the elephant in the room. Look, over there - Squirrel!'

  • Member since
    June 2016
  • From: Upstate South Carolina
Posted by Murphy's Law on Friday, January 12, 2018 5:55 PM

From Revell USA on my Twitter feed:

We want to thank you for your concern regarding the recent news of Hobbico's chapter 11 filing. Revell will continue to run business as usual and continue to provide best in class model kits. We appreciate your support. Please stay tuned for the latest new product releases.

  • Member since
    July 2013
  • From: Chicago area
Posted by modelmaker66 on Friday, January 12, 2018 5:12 PM

Enamel paint is bad for the enviroment. It is not "nuts" that are calling for them to be banned, It's people with common sense and a concience toward the planet. They will be unavailable comeletely soon, and for just cause. The times they are a changing friend, get on board.

  • Member since
    September 2005
  • From: North Pole, Alaska
Posted by richs26 on Friday, January 12, 2018 4:50 PM

Retired In Kalifornia

 

 
MJames70

It does make one question the state of the hobby in general, at least in the Western world. While things seem to be chugging along okay in the Far East/Asia, much less so once you hit Western Europe and the US. 

Hornby, owner of Airfix, Humbrol, and many other brands, is in serious trouble in the UK. In many ways Hornby is a UK analouge of Hobbico. Airfix just announced their 2018 releases - a grand total of three new tools. one of them a revision of a last year release (Phantom). All airplanes, too. Zippo if you're a ship, armor, car, scifi, or figure modeler. Not good times there. 

Besides the Hobbico news, Testors has been serious decline in the US as well, dropping product lines and colors, after years of buying up the competition. They have been probably hurt by the rise of 'micro' brands of paint that seem to be everywhere these days. But their response seems to be to just give up, or a general disinterest in the hobby market these days, when they used to be a category leader.

Regardless, it is interesting, if not good, times. 

 

 

 

Enamels are what I use, know they'll be out of production at some point. Am praying daily I'll still be able to get them till quit the hobby which don't expect to till I complete all my Regia Aeronautica Italia builds hopefully by 2020 at the earliest.

 

 

Actually it is environmental laws that are doing in the enamel paints driven in large part by the enviro-nuts in California.  They can't be shipped in the mail or UPS, etc which most hobby stuff is bought online rather in hobby stores, so they can only be shipped to stores with plenty of red tape.

WIP:  Monogram 1/72 B-26 (Snaptite) as 73rd BS B-26, 40-1408, torpedo bomber attempt on Ryujo

Monogram 1/72 B-26 (Snaptite) as 22nd BG B-26, 7-Mile Drome, New Guinea

Minicraft 1/72 B-24D as LB-30, AL-613, "Tough Boy", 28th Composite Group

  • Member since
    February 2014
  • From: Michigan
Posted by silentbob33 on Friday, January 12, 2018 12:51 PM
I think you make a good point there Fermis, it's what we got started with. My son is starting to get into the hobby and he's getting his start with Revellogram kits. I read a lot about people complaining about the hobby dying, but what do they think will happen if there are no beginner's kits? I show my son a Monogram 1/48 SBD Dauntless he's excited because it looks like something he could build,but if I show him an Eduard 1/48 Fw190A-8 and his interest drops because of all the small parts and confusing directions. Those old Revellogram kits still have a relevant place in the hobby today, even if they aren't relevant for an individual person. Plus, I really like the old Revellogram kits...

On my bench: Academy 1/35 UH-60L Black Hawk

  • Member since
    January 2009
  • From: hamburg michigan
Posted by fermis on Friday, January 12, 2018 12:24 PM

Don Stauffer

 

 
modelmaker66

Plenty other fish in the sea. Nothing that cannot be acquired from other mfg. Revell hasn't been meaningful since the 1970's

 

 

 

Not all of us feel that way.  I, and a number of my friends, really like the new stuff they have been putting out for the last three or four years- not  the repops but the new mold stuff.  They are now producing great molding with fine detail, at great prices. 

I can agree with Modelmaker, regarding all the re-pops...being from the 60's-70's. I cut my teeth on those kits as a kid, and recut my teeth on em again, upon my latest return to building. These days, I have zero interest in any of em.

However, I can't think of anything to really complain about any Revell kit (that I have built), that has been put out in the last 20 years. I do think some are a bit overpriced, but if you compare to some other companies, the price is decent.

  • Member since
    January 2013
Posted by BlackSheepTwoOneFour on Friday, January 12, 2018 11:55 AM

Hopefully, Hobbico will restructure or sell instead of closing shop for good. Filing Chapter 11 doesn’t necessarily mean the option is to close shop and go belly up. I think they will right themselves up somehow.

  • Member since
    July 2011
  • From: Armpit of NY
Posted by MJames70 on Thursday, January 11, 2018 7:44 PM

It does make one question the state of the hobby in general, at least in the Western world. While things seem to be chugging along okay in the Far East/Asia, much less so once you hit Western Europe and the US. 

Hornby, owner of Airfix, Humbrol, and many other brands, is in serious trouble in the UK. In many ways Hornby is a UK analouge of Hobbico. Airfix just announced their 2018 releases - a grand total of three new tools. one of them a revision of a last year release (Phantom). All airplanes, too. Zippo if you're a ship, armor, car, scifi, or figure modeler. Not good times there. 

Besides the Hobbico news, Testors has been serious decline in the US as well, dropping product lines and colors, after years of buying up the competition. They have been probably hurt by the rise of 'micro' brands of paint that seem to be everywhere these days. But their response seems to be to just give up, or a general disinterest in the hobby market these days, when they used to be a category leader.

Regardless, it is interesting, if not good, times. 

  • Member since
    July 2011
  • From: Armpit of NY
Posted by MJames70 on Thursday, January 11, 2018 7:05 PM

Despite the 'rainbows and unicorns' optimism of the Hobbico statement, the news from business pages and local papers is far less optimistic. And Hobbico actively admits they are looking for a buyer. 

That is kind of scary, as one never knows what may happen with a new owner, whether it through sale or bankruptcy. One can hope it is a knowledgeable group, willing to nuture and grow the brands into something viable. But I fear, and I think more likely, is that it would be a group swooping in looking to scoop up a bargain, plunder what they can, and move on when they've made a buck on the remains. 

Regardless of your feelings as to their 'worth' these days, it would be a sad end to an era to see the last major American injection model company disappear into the sunset. 

  • Member since
    July 2004
  • From: Sonora Desert
Posted by stikpusher on Thursday, January 11, 2018 12:05 PM

Don Stauffer

 

 
modelmaker66

Plenty other fish in the sea. Nothing that cannot be acquired from other mfg. Revell hasn't been meaningful since the 1970's

 

 

 

Not all of us feel that way.  I, and a number of my friends, really like the new stuff they have been putting out for the last three or four years- not  the repops but the new mold stuff.  They are now producing great molding with fine detail, at great prices.

Their KK Midget racing car was a real gem, but I think the subject was not of enough appeal for it to have much success.  Their 1:48 Stearman is a beautiful kit at a super-low price.  Their casting of the cabane struts solves the old biplane dilemma of how to attach the upper wing while keeping it parallel to the bottom.  I have not seen it yet, but the talk is their new 1:32 P-51D is a really great kit.

 

 

Exactly. They may no longer churn out a high number of new mold kits, as they did in the 80’s, but those that they do are great. Revell USA is slow on their new tool stuff, but Revell Germany, they keep cranking out new kits.

I truly feel sad for the employees who will take the hit on this. For us modelers, it’s not life changing. For the employees it is potentially very much so. I suspect that all the model brands will be sold off to the highest bidder. I can not honestly see all those labels disappearing. 

 

F is for FIRE, That burns down the whole town!

U is for URANIUM... BOMBS!

N is for NO SURVIVORS...

       - Plankton

LSM

 

  • Member since
    September 2013
  • From: San Antonio, Texas
Posted by Marcus McBean on Thursday, January 11, 2018 12:00 PM

jeffpez

Bankruptcy means the stockholders, the real owners of the company, are at the very end of the line to receive any assets. In other words, the stock is now valueless so any employee who had an ESOP now has nothing. If the company emerges from bankruptcy new stock will be issued which won't help the current owners. Sad all around.

 

 
I know about valueless stock.  I was with MCI/Worldcom when they went bankrupt in 2003.  I have just over $900K in stock and after the bankruptcy, I got a check for $3,500.  Those employees with the ESOP will be lucky of see pennies on the dollar after this is over.
  • Member since
    January 2016
  • From: A Galaxy Far, Far Away
Posted by Hunter on Thursday, January 11, 2018 11:01 AM

That is not good news...hopefully they can pull out of this.

Hunter 

      

  • Member since
    November 2009
  • From: SW Virginia
Posted by Gamera on Thursday, January 11, 2018 10:36 AM

scottrc

I am heavy into RC and had seen a huge decline over the past two years in the Great Planes/ TopFlight/ Tower line.  RC was the largest segment and the bulk of market income for Hobbico, but they seemed to refuse to adjust to complete with a bunch of new, low cost retailers in the market.  HobbyKing has eaten Hobbico's lunch in the drone market, where I can buy a battery for $11.99 from HK, where Hobbico wanted $33 for the same type of battery. Horizon and a new, family owned player, Motion RC, made ready made foam RC much more affordable than Hobbico's FlyZone line.  Traditional RC, which is kit building, was negleted by Hobbico for a number of years ago and those customers, whome I was one of, felt alienated and formed a market has been taken over by a new cottage industry of kit cutters and suppliers.  

The story of Hobbico is almost identical to Kmart/Sears, another huge retailer that is predicted to be extict by the end of the year because they didn't timely adjust their business model to compete with Wamart, Amazon, Costco, and IKEA.  

 

 

Lovely, just lovely. Sounds a lot like the decline and fall of Radio Shack as well. If you want to hear a real horror story about mismanagement and bone-headed decisions read up on how Radio Shack's upper level management got the company into a hole and then decided to just keep digging... 

 

I'd hate to see it, Monogram, Revell, and Estes are part of my childhood. But then again Atari was too and they bankrupted themselvies, split up the company and then sold it off over twenty-five years ago.  

"I dream in fire but work in clay." -Arthur Machen

 

  • Member since
    September 2017
  • From: HTX
Posted by Kien on Thursday, January 11, 2018 10:33 AM

modelmaker66

Plenty other fish in the sea. Nothing that cannot be acquired from other mfg. Revell hasn't been meaningful since the 1970's

 

I looked under the "our brands" page on the Hobbico website, and among the kit producers there was Italeri, Hasegawa, Revell, Revell of Germany, and Monogram. Does this mean that Hobbico owns these kit producers? and that if they are out of business then there will be no Hasegawa etc... or just that they won't be imported to the US? 

Even though I'm not the biggest fan of Revell, it doesn't mean they are irrelevant. They still make some very affordable kits compared to Tamiya, especially their 1:32 scale aircraft which are a fraction of Tamiya's 1:32. Tamiya being over a 100$, while Revell's are only 30-50$. It would be nice if they stick around. 

Though it'd be a pity if Hasegawa disappeared!

https://www.hobbico.com/brands.php

 

 Youtube Channel:                                                       https://www.youtube.com/channel/UCkcc2P3-PluSdehvVCEKLdw

  • Member since
    December 2003
  • From: 37deg 40.13' N 95deg 29.10'W
Posted by scottrc on Thursday, January 11, 2018 10:12 AM

Yup, I think RC is the root, but I would disagree that is very expensive.  Over the past few years, I have observed that my plastic model hobby has been at par, if not surpassed the cost of my RC hobby.  I used to build a plastic kit for a few dollars, now, I have invested more on a plastic model than a RC kit.  

Another problem for Hobbico is that they also arrived in the Plastic model market way too late.  They could not complete with Tamiya/MRC, Trumpeter with the purchase of Revell, and then compete against dozens of highly established distributors that we are loyal to in trying to sell their models and supplies.  

  • Member since
    January 2013
Posted by BlackSheepTwoOneFour on Thursday, January 11, 2018 9:17 AM

Maybe the RC department is the root of all their problems. Granted RC is expensive and a very expensive hobby to boot. If they simply parted ways with all things RC, they might just be saving face in the long run.

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