[NSRCA-discussion] Hobbico Chapter 11????

[Michael Gosson]

I think in the big picture that really won't amount to very much at all. If Hobbico is to survive their financial crisis they must look to moving their existing model into a different direction. I hate to see it but the demise of the brick & motor shops certainly isn't helping the Hobbico model.


Conversely, Horizon has taken the business directly to the customer as well as, in part supporting the local shops. Successful or not it's the model they're using.

________________________________
From: NSRCA-discussion <nsrca-discussion-bounces at lists.nsrca.org> on behalf of Jon Lowe via NSRCA-discussion <nsrca-discussion at lists.nsrca.org>
Sent: Thursday, January 11, 2018 10:16 PM
To: John Pavlick; NSRCA
Subject: Re: [NSRCA-discussion] Hobbico Chapter 11????

I read the article Mike Mueller linked to, and they said increased competition was part of the problem, but one of the fixes they tried was increasing prices.  Ironic.

Other than closing the Nevada distribution center, I didn't see much about streamlining operations, or opening up to more sales channels. One thing that could help would be to open up to smaller hobby suppliers. They require a huge initial order that smaller shops or specialty firms that don't want or need to carry a complete product line can't deal with. I know of two outfits that are familiar to a lot of us who would love to carry part of the Futaba line to complement other things they sell, but Hobbico won't wholesale to them. You can't fix stupid.

Jon

On Jan 11, 2018 2:29 PM, John Pavlick via NSRCA-discussion <nsrca-discussion at lists.nsrca.org> wrote:

It’s just a way to stop the bleeding and bring in new money with either an outright sale of the business or through investors. It’s still not a good sign though. It means you’re too big to support yourself. Unfortunately businesses can’t just print more money like the Federal Government does… LOL



John Pavlick

Cell: 203-417-4971



[idslogo2]

Integrated Development Services





From: NSRCA-discussion [mailto:nsrca-discussion-bounces at lists.nsrca.org] On Behalf Of DaveL322 via NSRCA-discussion
Sent: Wednesday, January 10, 2018 8:33 PM
To: Michael Cohen <precisionaero at hotmail.com>; General pattern discussion <nsrca-discussion at lists.nsrca.org>
Subject: Re: [NSRCA-discussion] Hobbico Chapter 11????



The short of it.... Chap 11 is restructuring, not liquidation and out of business.  So the most likely scenario (short term at least) is profitable proprietary / exclusive product lines will continue and less profitable ones will go away.



Regards,



Dave



Sent from my Sprint Samsung Galaxy Note5.



-------- Original message --------

From: Michael Cohen via NSRCA-discussion <nsrca-discussion at lists.nsrca.org<mailto:nsrca-discussion at lists.nsrca.org>>

Date: 1/10/18 7:59 PM (GMT-05:00)

To: NSRCA <nsrca-discussion at lists.nsrca.org<mailto:nsrca-discussion at lists.nsrca.org>>

Subject: [NSRCA-discussion] Hobbico Chapter 11????



So, just saw Hobbico is filing for Chapter 11 bankruptcy.  Since they own Tower Hobbies and Great Planes AND are a distributor of many lines in the US, what does this mean?  I still do buy some things that aren't pattern related and even though some is from the Local Hobby Shops, if distribution is gone, what happens then?



Mike Cohen

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