PaperModelers.com

Go Back   PaperModelers.com > Papermodelers' Bar and Grill > The CardBoard Lounge

Reply
 
Thread Tools Display Modes
  #1  
Old 01-11-2018, 02:07 AM
southwestforests's Avatar
southwestforests southwestforests is offline
Member
 
Join Date: Feb 2011
Location: On the edge of the river valley
Posts: 1,474
Total Downloaded: 5.88 MB
Hobbico, Inc. Files Petition for Chapter 11

I expect that some here use their cutting mats, blades, glues, tools.
https://www.hobbico.com/company-news.php
Quote:
Hobbico, Inc. Files Petition for Chapter 11 Relief and Pursues Sale of Company Seeks Protection from Creditors to Restructure and Attract New Capital Investment; Operations Continue Throughout Bankruptcy Process

CHAMPAIGN, Ill. – January 10, 2018 – Hobbico, Inc. ("Hobbico" or "the Company") announced today that it has filed a petition for relief under Chapter 11 of the United States Bankruptcy Code while it seeks an orderly finalization and implementation of its comprehensive restructuring plan. The petition was filed today with the United States Bankruptcy Court – Wilmington of Delaware In conjunction, Hobbico also announced its plan to sell the company.
Since 1971, Hobbico has grown in to one of the largest United States distributors of radio-control and general hobby products. Built up over time and with the best intentions to further grow its business, Hobbico’s debt has added too much leverage for the Company, and it has been unable to successfully restructure to help meet its financial obligations. With the added impact over the last few years of an increasingly competitive industry, market headwinds and a series of one-off events with key suppliers, Hobbico’s current financial position is unsustainable.
The following post and comments are worth reading.
Due to disabling illnesses it has been since 2006 that I was in retail and retail hobbies but I did have fun while there. Maybe in a perverse way I got lucky by being forced to leave retail, and leave working at all.

Industry Giants Flounder | UAV Expert News
Quote:
Each industry is different, but in the US most customers simply do not understand (or care) how businesses work. Most are unaware that retail hobby and electronics stores operate on profits that have been driven to less than a 20% gross margin. What this means is that a typical beginner model airplane that might sell at a store for $99.99, cost the store $79.99. But to really get the full picture you have to do all of the math. For instance that model aircraft product that sells for $99.99 at the store (and online) has the following cost associated with it.
__________________
Screw the rivets, I'm building for atmosphere, not detail.
later, F Scott W
Reply With Quote
Google Adsense
  #2  
Old 01-11-2018, 11:18 AM
C9B C9B is offline
Member
 
Join Date: Jan 2015
Location: St. Louis, Missouri
Posts: 289
Total Downloaded: 669.56 MB
Frankly, I think that competition from Hobbico (Tower Hobbies mail order and internet) has driven a lot of local merchants out of business. Now they’re getting squeezed.
Reply With Quote
  #3  
Old 01-11-2018, 12:16 PM
KCinKC46's Avatar
KCinKC46 KCinKC46 is offline
Member
 
Join Date: Nov 2009
Location: Kansas City, MO
Posts: 656
Total Downloaded: 2.15 GB
That's too bad. Hopefully, whoever takes over has a passion for the hobbies.
Reply With Quote
  #4  
Old 01-11-2018, 01:17 PM
airdave's Avatar
airdave airdave is offline
Member
 
Join Date: Apr 2009
Location: Ontario Canada
Posts: 14,246
Total Downloaded: 257.44 MB
Passion for hobbies is long gone (at least from manufacturers) unless theres money involved.
Mobius stepped into the plastic market, but has to charge crazy prices for kits because of production costs (versus demand).

Hobbico, like many hobby retailers, moved towards RC products to stay in business.
Thats understandable.
Other hobbies have become less and less prominent.

Who is filling the gap? China.
I don't mean that in a completely negative way towards Chinese people.
I'm talking about the way Chinese companies are flooding the market with cheap knockoffs of every RC toy there is.

Amazon, ebay, Ali Express, all offer a $20 version of that good $100 unit.
At least 50% of the market are impulse buyers and novices that are swayed by the cheap knockoff.
Its cheap enough that they can throw it away if they don't get hooked or if it breaks.
And lets face it, the technology is so far advanced now, that even cheap stuff is starting to last quite well.

I'm guilty of buying plenty of those cheapo versions.
I admit it.
But if this keeps going, China will force everyone out of business.

The only Americans that will survive are those who capitalize on the Chinese production.
The founder of Amazon is now the richest man in all earth's history.
His net worth is $105 Billion.
__________________
SUPPORT ME PLEASE: PaperModelShop
Or, my models at ecardmodels: Dave'sCardCreations
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -6. The time now is 08:26 PM.


Powered by vBulletin®
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.

Parts of this site powered by vBulletin Mods & Addons from DragonByte Technologies Ltd. (Details)
Copyright © 2007-2023, PaperModelers.com