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Hobbico - files for Bankruptcy

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Geoff Sleath12/01/2018 00:13:59
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John, you should remember. If you owe the bank £100 then the bank has you by the short and curlys. On the other hand if you owe the bank £100,000,000 then you have the banks by short and curlys.

It's a well known law of the universe. I'm surprised you haven't heard of it before

Geoff

TartanMac12/01/2018 01:56:56
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I never thought hobbico would get in trouble. I learned how to fly on a hobbico superstar trainer. I've learned over the past 2 years at that level of money business is very different for the business and the bank. I heard a billionaire speak about a banker going to his house for dinner asking for help as he was 770 million under invested that year. Also how much has the government given them Amazon don't own their warehouses and they don't pay to have them built and have very few staff under their employment compared to how many work their. And they are working towards not owning any of the stock as it takes away from there profit. So who knows what kind of game the people at the top of that company are playing.

David Davis12/01/2018 04:39:49
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Posted by Geoff Sleath on 12/01/2018 00:13:59:

John, you should remember. If you owe the bank £100 then the bank has you by the short and curlys. On the other hand if you owe the bank £100,000,000 then you have the banks by short and curlys.

It's a well known law of the universe. I'm surprised you haven't heard of it before

Geoff

If you owe the bank £100,000,000 they put you on the board of directors!

Callsign Tarnish12/01/2018 09:28:56
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14 forum posts
Posted by TartanMac on 12/01/2018 01:56:56:

Amazon don't own their warehouses and they don't pay to have them built and have very few staff under their employment compared to how many work their. And they are working towards not owning any of the stock as it takes away from there profit.

As someone who's worked for Amazon for many years this is the biggest load of garbage I've read for a while. Complete fiction.

Ron Gray12/01/2018 11:07:39
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Fake news?

TartanMac12/01/2018 11:52:49
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Complete fiction ? How does TaTa own the largest warehouse of Amazon's then ? And I also worked there and was told by a guy that worked there from when it opened that Amazon have consistently been dropping the % of the stock they own every year and are trying to get it to almost nothing. And how did TaTa get there hands on there biggest warehouse In the UK ? Because they did'nt even own it to begin with. And when I was there the green badges far out numbered the blue ones.

You really think that those multi national companies do straight forward business like the average guy. Look at Elon Musk he got 500 million off the US government then was told he did not need to pay it back then got given shed loads more. Loads of the larger companies do stuff like that.

Like I said once you are at big numbers I think business is very different. And there is options that the everyday guy does not have.

John Tee12/01/2018 14:18:26
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On a smaller scale the last company I worked for (UK) kept taking over small successful companies like the one I worked for until they came along. The problem was it was all done on borrowed money and then they struggled with repayments. After the last round of "streamlining" I took early reirement. They went bust three months later, taking 300 jobs in my company alone with them. Don't know how many went in the other companies in the group.

John

Percy Verance12/01/2018 14:58:18
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Oooh, that was a close shave John. If you'd hung on, you may have had problems pension-wise.....

I decided I'd kick full time employment into touch not long ago too. In the event Brexit worked in my favour quite well, as it added about 20k to my pension pot in the space of a few months prior to my finally cashing in my chips.

Erfolg12/01/2018 20:05:51
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10617 forum posts
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I am far less than convinced that the Hobbico situation is any way unusual, for a big or a small company.

How many businesses last more than say 30 years? I can think of only a small number, the vast majority have even been taken over, or ceased trading. The business sector we have an interest is one such area. We all lament the passing of Keil Kraft, Veron, Frog, Mercury. Once all had significant presence as manufacturers. The situation with respect IC engines is broadly similar, be it ED, AM, Merco, Irvine. They all come and go with the regularity of a bus service, totally unpredictable.

In general even the names we think have history, be it Graupner, Multiplex are not the same businesses that are remembered some 10 years back. Mostly now owned by distant entities.

The one name that seems to endure is PAW, I just hope that has not put the mockers on them.

Although I do think that our hobby base is shrinking in both us, the punter and the suppliers. I cannot but see the demise of the USA, RCM and many of the UK model mag titles being an indicator as to the commercial health of our hobby.

I now think that if our interest was an expanding part of society, there would still be major changes, from companies taking over others, and yet some companies would still cease trading, others would be new start ups. As it is, I expect the same scenario be to be true in a general sense, in a declining market.

The void left will soon be filled, albeit by a smaller trader, or maybe a larger one, who knows today?

My hope revolves around the equestrian industry, no longer the prime mover in fields as diverse as framing to transport. Yet, many businesses still remain very active in the market place.

john stones 112/01/2018 20:24:58
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8965 forum posts
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Neigh Erf.

Percy Verance12/01/2018 20:53:33
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5806 forum posts
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I'd broadly echo the sentiments posted above. Something good may come out of it though, and that's a return to traditional modelling. There will of course be a downside, in that unless you build you won't get to fly.

That assumes we can still source the materials needed to build models..........

Edited By Percy Verance on 12/01/2018 20:55:00

Geoff Sleath12/01/2018 21:01:40
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2175 forum posts
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Certainly it's horses and their upkeep that account for the vast number of traffic movements past our house, which is on a lane with no vehicular through route. It amazes me because there's absolutely nowhere to ride enjoyably. They all just hack along the roads. I can see the pleasure in riding (I once had a horse mad girl friend who got me on a horse a few times) but not walking on the road.

Anyway as to the life of a business - my grandfather set up his watch repair business in 1978 and my father finally retired and closed up in 1980, so it lasted over 100 years. Dad did change the business a bit and added air rifles (we became registered gunsmiths), photographic equipment, and, primarily radio/TV and white goods but it kept going as Sleath and Sons all that time. Admittedly, he was losing money hand over fist at the end mostly because of pig-headedness but it kept going and it was sad to see the end of it.

Geoff

Don Fry12/01/2018 21:01:55
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1937 forum posts
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Then again Erf, a bit of dobbin, slow roasted, ain't a bad Sunday lunch.

kevin b12/01/2018 21:51:50
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This thread is now starting to go way off topic.

Time for the mods to reign it in I think. devil

Biggles' Elder Brother - Moderator12/01/2018 23:13:49
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Nah - I think we'll let it "have its head" for a while yet! smile

BEB

Tom Sharp 212/01/2018 23:49:38
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Posted by Geoff Sleath on 12/01/2018 21:01:40:

Certainly it's horses and their upkeep that account for the vast number of traffic movements past our house, which is on a lane with no vehicular through route. It amazes me because there's absolutely nowhere to ride enjoyably. They all just hack along the roads. I can see the pleasure in riding (I once had a horse mad girl friend who got me on a horse a few times) but not walking on the road.

Anyway as to the life of a business - my grandfather set up his watch repair business in 1978 and my father finally retired and closed up in 1980, so it lasted over 100 years. Dad did change the business a bit and added air rifles (we became registered gunsmiths), photographic equipment, and, primarily radio/TV and white goods but it kept going as Sleath and Sons all that time. Admittedly, he was losing money hand over fist at the end mostly because of pig-headedness but it kept going and it was sad to see the end of it.

Geoff

Did you mean 1878 start

Geoff Sleath12/01/2018 23:58:25
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2175 forum posts
148 photos

Yes, I did. A slip of the finger My grandfather was born around 1860 and died in 1945 when I was 5. I can still remember seeing him working at his bench with a treadle driven lathe. We all lived at the shop.

Geoff

KiwiKid13/01/2018 03:14:32
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320 forum posts
257 photos

Yes, all interesting stuff BEB.

Left hand down a bit.

I really don't like Hobbico's chances of getting out of this. Sale to another entity is the best option, but I don't think anyone would buy a company that has been left in the dust by it's competitors and hasn't had any real innovation for the past 15 years. While Tower has name recognition, much of their base is either gone or going away quickly. Most newcomers into the hobby are not looking for quality or durability, they are looking for any way to get in the air with as little money and as little work as possible. Hobbico products certainly don't fit that bill.

In an example of "there is no problem that cannot be made worse," I was surprised to note this little gem at the end of one of the newspaper articles "Hobbico is under a federal investigation. We first told you two weeks ago that leaders are accused of mismanaging employees' stock. Several current and former workers said their accounts have plummeted." There are several reports of staff who were laid off or took redundancy last year not being able to get their funds out. They were fobbed off and a promised payment date of 31 Dec came and went and then 10 Jan Ch11! Not a great way to start the year.

Rich too14/01/2018 07:27:32
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2485 forum posts
940 photos

Companies become too big to fail, a big flaw in capitalism. It has been announced this morning that Carillion is in trouble owing £1b to its bankers. And surprise surprise it’s got a large pension deficit. It’s about time people were held to account for these (criminal) activities.

Paul Marsh14/01/2018 10:39:52
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Hobbico are finished, no chance. If carrillion fails, which it will by 5:00pm tomorrow, Hobbico has no chance, as Carrillion has large contracts and Hobbico has pracatically nothing. Won't be the last one to go, House of Fraser and Debanhams are starting to feel the pinch, with profit warnings and the like.

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