Hobbico files for bankruptcy - what now?

[Marco Polo]

In case you missed it, here is the link to the Hobbico story in the local Campaign, IL newspaper: http://www.news-gazette.com/news/loc...offs-next.html

I'm curious what people think about this news. What does it mean for the industry overall? What about Hobbico's exclusive partners like Futaba, OS, TopFlite, and Italeri? I'm also wondering what they are referring to when they say "one-off events with key suppliers". Anyways, this is pretty big news in our hobby so just wanted to engage our readers and get your views and opinions.

[yorkiepap]

IMO, nothing to get concerned over. Businesses come & go with the tide of commerce. If a company is not profitable, then it can't survive. That's the way it goes.

[TiredIronGRB]

When corporations get too top heavy they topple, staying lean and connected to your customer base is the key to success. I doubt that Hobbico will be the only one, Hobbyking seems to be heading down the same path.

[RCjetdude]

Interesting article. I have ordered stuff from Tower in the past (charger, tubing, minor stuff) and I get their catalogs in the mail but personally have never been that interested in what they have offered. I have also found their website somewhat cumbersome to navigate but that is just me. Hate to see it happen non the less and it can happen to just about anyone. I am sure that competition is tough in this business but it really is a matter of providing products and services that the customers are willing to pay for.

[F106DeltaDart]

I feel exactly the same way. Never ordered much from them besides stuff model paints and wheels. And even then, finding things on the site was a pain. I am saddened that this might impact the Top Flite line though. Their big P-47 was always a goal for me someday. But, this is what happens when you fail to keep up with the times.

[Kloverzero]

Top Flite will be bought, I am sure. Those models are popular, but when was the last NEW Top Flite kit introduced? I have been looking at the same kits for twenty years it seems. In my opinion, if you try to sell the same thing, to mostly the same people for that amount of time, it will stagnate. I think most of the product lines will be okay, Revell, Estes, Top Flite, Great Planes, Phoenix, they will either break away on their own, or someone will buy them. Hobbico may go away, but like a phoenix, someone will rise from the ashes.

[rifleman_btx]

I'm sure the traxxas lawsuit didn't help matters lol.

[fhhuber]

Chapter 11 seeking buyout.

this is essentially what Boston Market did about 20 years ago.
They used chapter 11 to void all common stock
Then they sold new common stock.
Instantly financially sound again...
The CEO and executives all had preferred stock that did not get voided. They lost nothing and even gave themselves huge bonuses 9for stealing from their stockholders)

Hobbico has been an employee owned (all stock owned by employees) company. They can just void the employee stock and then make a public offering. Instant solvency. Employees screwed.

This is how the stock market works in bankruptcy. Common stock loses first. Preferred stock may not lose at all.

[rifleman_btx]

Yup

[quitcherbitchen]

Here is a question I use to ask people all the time. What is the first thing you do with the Hobbico/ Tower catalog?---Throw it out. It's a shame they couldn't see their own shortcomings. This will hurt a lot of small hobby stores as they use to do a lot of wholesale business. There might be a ripple effect.

[F106DeltaDart]

Top Flite will be bought, I am sure. Those models are popular, but when was the last NEW Top Flite kit introduced? I have been looking at the same kits for twenty years it seems. In my opinion, if you try to sell the same thing, to mostly the same people for that amount of time, it will stagnate. I think most of the product lines will be okay, Revell, Estes, Top Flite, Great Planes, Phoenix, they will either break away on their own, or someone will buy them. Hobbico may go away, but like a phoenix, someone will rise from the ashes.

I hope so. Now here’s a thought.. Top Flite as a Motion Balsa kit/arf line. It would be the final step to have Motion carry everything we could want and need :). And yes, I complete agree on the product diversity. I’ve been getting the Tower Hobbies catalog for as long as I can remember, and the kits have NEVER changed. Truely unfortunate compared to the rapid advances in the rest of the Hobby.

[RCjetdude]

Here is a question I use to ask people all the time. What is the first thing you do with the Hobbico/ Tower catalog?---Throw it out. It's a shame they couldn't see their own shortcomings. This will hurt a lot of small hobby stores as they use to do a lot of wholesale business. There might be a ripple effect.

I think you're right about it hurting the hobby stores. Our local HS is to me much like a smaller extension of Hobbico/Tower in that I tend to just get small stuff from them. Most of the planes they stock are Horizon eFlight trainers with an occasional FMS WW II Warbird thrown in but you can definitely see the Hobbico influence.

[RCjetdude]

I think Motion needs to look into producing and selling the STL files for a line of 3D printed planes and jets. May seem like a futuristic concept from an old Popular Mechanics magazine but I think it is the wave of the future. Top Flite kits have their customer base and may continue to do well if spun off but technologies are advancing. Motion could offer all the hardware, retracts, motors, EDF's, ESC's, etc. to just drop right into your 3D printed plane. Could take some effort to develop but once established, whoa!

[Beeg]

My biggest concern is Hobbico, HobbyLite wood filler. In my opinion thee best light weight filler available. I hope somebody continues this product.

https://www.hobbico.com/shop/accys/hcar3400.php

[xviper]

Here is a question I use to ask people all the time. What is the first thing you do with the Hobbico/ Tower catalog?---Throw it out.

Pretty close. With me, I've purchased a few small items and a couple of planes many years ago. Then I discovered I can get the same sort of plane (if not the same plane) elsewhere (more familiar shops or my local shop). I usually scan through the new catalog to see what's new and check out some general pricing. If anything looked interesting to me or if there was something that reminded me that I needed it, I'd go look for it at my other "usual" vendors. I haven't actually made a purchase in a very long time, so personally, I won't miss them. In fact, had this never showed up on the internet, I probably would have never thought about them for years to come.

[CT]

Ditto to BEEG, Hobbico, HobbyLite wood filler is by far the best on the market although expensive. I hope MRC is able to pick up these licenses to add to their inventory

[OV10]

Ditto to BEEG, Hobbico, HobbyLite wood filler is by far the best on the market although expensive. I hope MRC is able to pick up these licenses to add to their inventory

Expensive....... :Confused: it is about one third less the price of the Foam-Tac Foam Filler and yes it certainly would be nice to see Motion add things like that to their inventory.

But on the other hand increasing the depth of their business plan to becoming an all-in-one stop for RC airplane and supplies shopping that many might like to see happen would most likely end in the same manner as the Hobbico event.
To have that level depth and breadth of business also requires a rather large and bloated infrastructure and in the norm of American industry becomes top heavy and as TI said they topple.
Having gone thru it myself, the toppling is ALWAYS at the expense of the workers while the big shots bail with golden parachutes.:(
Stay on coarse with your business goals and objectives Marc/Tom. The Motion mission statement as published in your "Who We Are" is IMO the main reason that Motion has become very successful in such a short span of time.
Being everything to everyone is simply idealistic and unrealistic.;)

[CT]

What he said

[doctormike]

Tower closing shop?!!!! That's the only place I know of to buy decent ARF's. Also, if MRC doesn't have what I'm looking for, I go to Tower, who almost always has it. I guess I could buy direct from Great Planes. I'd better buy a bunch of those one piece aluminum landing gear blanks. Doc

[Loneflier]

Tower closing shop?!!!! That's the only place I know of to buy decent ARF's. Also, if MRC doesn't have what I'm looking for, I go to Tower, who almost always has it. I guess I could buy direct from Great Planes. I'd better buy a bunch of those one piece aluminum landing gear blanks. Doc

I'm with you doctormike. MRC and Tower are about the only places other than my LHS that I use to feed my RC addiction. Lately, I have been wanting to take a break from foam planes and try out some balsa/ply ARFs, and like you said, Tower has a nice selection of them. Over the last 3 months, I've bought the Avistar Elite, PT-19, Ryan STA, Electrostick, and the Tower Sport 46. All seem to be well made. The Avistar is a fantastic flying plane, and while it is billed as a trainer, it is still capable of most aerobatics. My transition into ARFs has not been without some teething pains, mainly having to learn a bit more about electronics and properly sizing motors and ESCs, but that has been part of the fun too. I don't plan to leave foam planes behind, I still want that FMS 1500 P47, and will eventually order it from MRC. My point is that as good as MRC is, Tower offers many things that MRC doesn't carry, and it is always nice to have a choice. I really hope that Tower stays in business for many more years!