Video about the closing of Squadron Shop

The link works but I quickly stopped watching because it seems he wants to talk awhile before getting to the point. Are they in fact closing or not?

Yes they are closed.   

Jef details his association with the company and lays blame largely on the prior CEO.   I know both people and the CEO was always supportive of IPMS, both the National and local organizations.  Squadron provided models and tools to IPMS North Central Texas' Make and Take program for a greatly reduced cost.  Donations of probably more than a thousand kits over the past 3 years.  I feel some bitterness in Jef's comments - he was fired afterall.  Take Jef's comments with an appropriately sized grain of salt

jeffpez

The link works but I quickly stopped watching because it seems he wants to talk awhile before getting to the point. Are they in fact closing or not?

 

Yes, Squadron is done and he and a few fellow coworkers have opened up a new online hobby shop. https://jefvcornerstore.com/

He does reiterate that this video is his personal opinion and not an official statement, but he was there at the end. He has a lot of insight as to what happened; original buyer of Squadron got ill (near death) and became absent due to illness, financing lending institution dissolved and the "mortgage" was part of a portfolio in a higher level institution.

This higher level organization put their own CEO (an non-hobbyist) into place who wanted Squadron to be a collectables place, similar to Franklin Mint with diecasts.

They stopped stocking models. It went from a couple 40' containers a week to a couple a month to a container every six weeks, then to one container every six months. No inventory lead to the downfall.

Any order not filled by last week is not going to be filled. No one is left at the business/shipping side. MMD is also gone.

A lot of the long time employees were frustrated. The company kept looking for a new customer base. He states that he recommended they just start stocking stuff and "sell the heck out of it" to the current customer base and he was told he was the "most narrow minded person there".

R.I.P. to the granddaddy of mail order modeling; 53 years gone due to "mismanagement" (his words).

Rob

Thanks for taking one for the team and listening to the entire video. If even some of what he says is true then mismanagement and no clear vision certainly destroyed a great old name. In a way I'm glad to see this because I'd hate to think the economics of internet based hobby shops is as dire as that of the bricks and mortar stores.

jeffpez

...I'd hate to think the economics of internet based hobby shops is as dire as that of the bricks and mortar stores. 

I don't think it is.  I think this is a specific case of an Internet-based business that wasn't managed effectively, wasn't managed efficiently, and it declined to the point where it could not remain open.

jeffpez

Rob

Thanks for taking one for the team and listening to the entire video. If even some of what he says is true then mismanagement and no clear vision certainly destroyed a great old name. In a way I'm glad to see this because I'd hate to think the economics of internet based hobby shops is as dire as that of the bricks and mortar stores.

 

The original buyer was a hobbyist and in the industry. He got deathly ill, almost died, and was absent. At this time, the middle man lender went under and the loan was purchased by an investment group.

They are the ones who put their own CEO into Squadron, pushing out the owner who was buying the company. Think hostile takeover. This new CEO wanted to go in a different direction (collectables vs. modeling), and basically drove long time employees away and destroyed the company.

How sad is this, I have been ordering models from these guys since 72. What a sad day:-(

I had ordered the new Trumpeter 1/350 Viribus Unitas from them when it was released a few months ago. I never received the kit. And, my money was never refunded.  Hmmm . . . . . . .

Bill