Hobbico - BANKRUPT!

[peter31a]

Thanks for passing on this press release, Brett.

[Tom Geiger]

Maybe Chicken Little was a bit premature?  

[Brett Barrow]

I'd just like to add that so far we have no idea whether they will keep any kind of US presence, a warehouse or distribution center or anything or if everything will just come out of Germany.  I'll pass along anything I hear.  

[Dave Van]

Thanks Sir for that.......it kinda sounds like calls will be made in Germany. But positive on surface.

[martinfan5]

2 hours ago, Brett Barrow said:

Press release:

“Revell GmbH starts strengthened into future with new owner
Revell GmbH (Germany) announces today that in a court hearing which took place on 13 April 2018 at the US court having jurisdiction in Delaware the sale of Revell GmbH has been confirmed in favor of a company of the international investment group Quantum Capital Partners (QCP) with its company seat in Munich (Germany) as sole shareholder. The sale happened in the course of Hobbico, Inc.‘s restructuring process under Chapter 11.

Bünde, 16 April 2018

For Revell GmbH, which so far belonged to a company of the Hobbico, Inc. group in Champaign (USA) initiating a restructuring process under Chapter 11 of the US bankruptcy code at the turn of the year and announcing its plans to sell the group of companies, a lasting solution in terms of change of ownership emerged throughout this proceedings on 13 April 2018. New sole shareholder of Revell GmbH will be a company from the international investment group Quantum Capital Partners (QCP) in Munich. The operating business will not at all be impaired by this.

German investor as new Revell owner

The sale also includes key assets for the North America business, such as trademarks as well as the extensive tool bank being so important for the plastic model building segment. With the change of ownership Revell experiences a strengthening, as this involves an extension of the sales market and an even wider range of products.

Worldwide business operated from Bünde

The previous management in Bünde under the control of Stefan Krings will in future operate the worldwide business including North America.
„Revell is very happy to have Quantum Capital Partners as strong partner, who will assist the company to reach its further international growth. At this point I like to also thank all trade and business partners for the confidence they have placed in us in the past weeks of interim period”, is the comment from Stefan Krings on this news.

Steffen Görig, representative of QCP further explains: “Revell is a well-known and well- established company and it has shown impressively in the past how to found its position as successful toy brand. We will build on this strength and will further develop the Revell brand with its unique position as provider of model kits and toy manufacturer. We look forward to assist Stefan Krings and his team in that achievement and to realize the full growth potential of Revell.”

It needed this Brett

[Bernard Kron]

Thanks for the update, Brett.

This tells me that from here on out Revell is a German firm and any sensitivity they may have with regards to American cultural aspects of their model lines, for example Traditional Hot Rods and Kustoms, Pickup Trucks, American Muscle cars, NASCAR, drag racing , etc, will be as seen through a Revell, GmbH filter, What this means is anybody's guess, but for ex-Revell employees who have, up to now, shepherded the historical Monogram and Revell catalog, and even expanded it in the American Style with new releases in recent years, this means if they have any interest in having a role in continuing this lineage, they will have to justify that role with the German management. In my view, that is clearly the meaning of the closing of the US company last Friday.

The press release makes reference to the extensive Revell USA tooling as strengthening Revell by extending the sales market, presumably in the sense of integrating the Revellogram style of model kits to the European Revell GmbH line, thus creating "an even wider range of products". In the months to come we will see if this means that, Round2 style, this will merely mean supplying the historic range of kits established to date, or whether Revell GmbH will endeavor to continue to release new kits in the "American Style" in the months and years to come. Whether and how they do the latter will be the critical question as things reveal themselves. In the meantime I think that the indications from the press release is that the existing inventory of already produced kits will continue to be marketed and, less clearly but quite likely, the existing catalog will be maintained based on sales demand.

[Lunajammer]

Vacant news for Ed Sexton, I'm afraid. One would hope when the dust settles, the new owners will recognize his expertise and invite him back... if he'll take it.

European members of this forum commonly speak about how desirable American automotive subject matter is and how pricey it is to get. Perhaps the German owners have taken note and will be expanding the existing product line to service that demand.

[jefropas]

Ed's a great guy and would be a real asset to this new company. They will need American's plain and simple, and he's as good a place to start as any. I just hope it all goes well for all concerned...

Jeff

[Dave Van]

Salvino's JR could use a good product manager......

[Fat Brian]

Hopefully they will keep some of the US team on. Revell was already profitable, it just had the rest of the Hobbico boat anchor around its neck. Blitz got to cherrypick money making bits from a big pile of debt and got it at as severe discount so maybe they won't feel huge pressure to make a ton of changes right away.

[mikemodeler]

I find it interesting that some people already know what is going to happen with Revell based upon a press release. 

I choose to sit back and wait for reliable information from the company itself, but that's just me.

[Jon Cole]

So, is the new owner "Blitz", or "Quantum Capital Partners"?
I notice the press release from Revell has no mention of the previously mentioned "Blitz" name.                                    

[slusher]

8 hours ago, Brett Barrow said:

I'd just like to add that so far we have no idea whether they will keep any kind of US presence, a warehouse or distribution center or anything or if everything will just come out of Germany.  I'll pass along anything I hear.  

Thank you Brett for your information...

[niteowl7710]

1 hour ago, Jon Cole said:

So, is the new owner "Blitz", or "Quantum Capital Partners"?
I notice the press release from Revell has no mention of the previously mentioned "Blitz" name.                                    

Blitz is just a holding company owned by Quantum. 

[niteowl7710]

9 hours ago, Brett Barrow said:

I'd just like to add that so far we have no idea whether they will keep any kind of US presence, a warehouse or distribution center or anything or if everything will just come out of Germany.  I'll pass along anything I hear.  

In this day and age I'd assume they'd just name a few people (such as you guys/Stevens, Squadon, Horizon (via Tower) as U.S. Distributors, and then work direct deals with the likes of Hobby Lobby and Walmart (which has and still does carry Revell models online) since both those places are already pulling trailer loads of freight out of the ports.

[Brett Barrow]

8 hours ago, niteowl7710 said:

In this day and age I'd assume they'd just name a few people (such as you guys/Stevens, Squadon, Horizon (via Tower) as U.S. Distributors, and then work direct deals with the likes of Hobby Lobby and Walmart (which has and still does carry Revell models online) since both those places are already pulling trailer loads of freight out of the ports.

Horizon has no desire to do anything with plastic models.  They've made it clear that their purchase only related to the R/C parts of the company.  

I can tell you because I work next door to them that Stevens has been in like Christmas-levels of busy since the whole thing started and they've added a bunch of new employees to handle the increased workload. It's probably only going to get busier as this whole thing shakes out.   GP was huge and with Horizon not handling plastics that leaves Stevens as the top plastics distributor now.  

 I feel like if the new Revell wants to keep US sales at the level they're at they'll need some sort of US warehouse/central distribution. I don't think the independent distributors could handle it right now. 

[Mr. Metallic]

12 hours ago, mikemodeler said:

I find it interesting that some people already know what is going to happen with Revell based upon a press release. 

I choose to sit back and wait for reliable information from the company itself, but that's just me.

Excellent idea. Speculation is useless at this point. They've owned the company for less than a week. How about we, as a collective hobby, give them a chance to set up shop and show us what they're going to do.

[niteowl7710]

2 hours ago, Brett Barrow said:

Horizon has no desire to do anything with plastic models.  They've made it clear that their purchase only related to the R/C parts of the company.  

I can tell you because I work next door to them that Stevens has been in like Christmas-levels of busy since the whole thing started and they've added a bunch of new employees to handle the increased workload. It's probably only going to get busier as this whole thing shakes out.   GP was huge and with Horizon not handling plastics that leaves Stevens as the top plastics distributor now.  

 I feel like if the new Revell wants to keep US sales at the level they're at they'll need some sort of US warehouse/central distribution. I don't think the independent distributors could handle it right now. 

I understand Horizon doesn't deal with plastic, but they ALSO bought GP & Tower Hobbies (and by-proxy Omni Models). Unless they'e planning to end them both as distributors and fold it all into Horizon while jetisoning all the kits, supplies, etc. But Tower is still showing kit release dates into the early Fall over there. The mass email I got from Omni said they were continuing business as usual with no mention of ending model related sales.

Edited April 17, 2018 by niteowl7710

[Brett Barrow]

21 minutes ago, niteowl7710 said:

I understand Horizon doesn't deal with plastic, but they ALSO bought GP & Tower Hobbies. Unless they'e planning to end them both as distributors and fold it all into Horizon while jetisoning all the kits, supplies, etc. But Tower is still showing kit release dates into the early Fall over there.

I suspect they bought Tower just for the name/domain and their customer database.  I feel pretty confident that by the fall Tower will just redirect to Horizon's retail site and maybe they'll just end up rebranding the Horizon site as the new Tower Hobbies.  But Horizon wholesale has made clear to the rest of the industry that they will not be handling the plastic lines going forward and since Tower was 100% just stuff GP handled I suspect the new Tower (if it continues at all) will just be stuff that Horizon handles.  I never got the impression plastics was a big part of Tower's business anyway.   

[Dave Ambrose]

I think it's safe to say that continental private equity firms are different from their Anglo/American counterparts. 

My favorite coffee brand, Peet's was bought by JAB in Luxembourg. I was worried that quality would slip, and that I'd be reduced to drinking Starbuck's coffee. That hasn't happened. The coffee is just as good as ever, but the tea has undergone some changes. They merged it with another of their brands and explained that they were having supply problems due to increased demand for premium teas. We're getting by. They also own a bunch of other coffee companies, and Keurig. They seem to be making the synergies work for them. That's what these companies are supposed to do. 

I'm going to guess that there will be changes, but it seems like the continental equity companies are indeed in business to make money rather than bleed the cash, and stiff the suppliers like the American companies do. 

One advantage they have is access to eastern European mold making and manufacturing facilities. Their costs and capabilities are on par with China, and much closer. That takes a lot of time out of the product development pipeline, which reduces costs. I can't find what other companies they own, but it seems like they will take advantages of their portfolio, and the Revell acquisition is either part of an existing strategy, or the nucleus of a new plan. 

But, the long term challenge facing any of the traditional model companies is bringing younger people into the hobby. I feel like it can be done, but it needs a completely new strategy that hasn't been tried yet. Revell's previous management was good at marketing to people like us, but we're not the future. 

[Force]

Well said.
Anything we say at this moment is just pure speculation as there are not much facts regarding this yet.
I think we have to wait and see what will happen.

[Tom Geiger]

Agreed Dave.  Here's some bits from their website. They aren't a slash and burn company. Give this some time.

https://www.quantum-capital-partners.com/en/

QCP is a responsible investor and seeks to engage in long-term, sustainable investments that offer maximum value for all parties concerned.

We acquire businesses with significant potential for improvement, growth and development. Our investments are not limited to a specific industry. We work with the management to develop strategies for a sustainable and effective turnaround.

We take over: Businesses and responsibility for staff

We create: autonomy after take over

We invest: Capital and experience

Companies they own:

Aviatube SAS

As one of the leading manufacturers of high quality aluminium tubing in Europe, 

Barcelona Cartonboard S.A.U.

The Catalan paper factory on the Iberian Peninsula is the market leader in the production of recycling cartonboard. 

Leesys - Leipzig Electronic Systems GmbH

Leesys is an Electronic Manufacturing Services (EMS) system supplier, developing and manufacturing electronic modules, components and plastic products. 

Leichtmetall Aluminium GmbH

The core business of the Hanover-based foundry is hard aluminium alloys for the aerospace industry. 

SICA2M SAS

The French company SICA2M was originally part of the Dürr Group, for which it still manufactures and supplies industrial washing systems.

Quonex Groupe SAS

As an experienced systems integrator, the french corporate group develops holistic solutions for voice and data communications, clouds, security and surveillance systems, radio communications as well as cabling systems.

SECAN SAS

The Société d'Etudes et de Constructions Aéronavales [Association of aeronaval studies and constructions] - SECAN for short- was founded in 1941. Since then, it has increasingly specialised in the development and production of heat exchangers, and cooling steam systems for the aviation, aerospace and automotive industry.

SLIM S.p.A.

Over the course of 40 years of corporate history, the Italian company has specialized in the production of aluminium rolled products. Today, SLIM manufactures a wide range of aluminium sheets, tapes and foils for the packaging, automotive, transport and construction industries.

SLIM Fusina Rolling Srl

At their facility in Fusina, Venice, the Italian company produces a wide range of rolling mill products made of aluminium. 

SoProNem SAS

Across Europe, the French company is one of the largest manufacturers of detergents and cleaning agents. 

TeleAlarm SA

TeleAlarm is a medium-sized company based in La Chaux-de-Fonds, Switzerland, that develops and sells home medical alarm and nurse call systems. 

Vauste Spain SL

Vauste Spain SL based in Gijón, northern Spain, produces shock absorber systems for the automotive supply industry. 

[niteowl7710]

1 hour ago, Force said:

Well said.
Anything we say at this moment is just pure speculation as there are not much facts regarding this yet.
I think we have to wait and see what will happen.

The only speculation there really is at this point is to what the new company is going to have the newly German Unified Revell do with the US tooling and US Market.  Because this morning the current RevellAG pushed out pre-orders on some up coming kits for the early summer, combined with their press release from earlier this week clearly indicate they're operating as if nothing happened other than who writes the checks.

[Brett Barrow]

7 minutes ago, niteowl7710 said:

The only speculation there really is at this point is to what the new company is going to have the newly German Unified Revell do with the US tooling and US Market.  Because this morning the current RevellAG pushed out pre-orders on some up coming kits for the early summer, combined with their press release from earlier this week clearly indicate they're operating as if nothing happened other than who writes the checks.

Yep, Revell Germany since wasn't part of the bankruptcy filing they've been able to continue throughout with close to normal day-to-day operations.   I expect we'll hear something fairly soon re: US Revell as I'm sure the new owners will want to get the cashflow moving as soon as possible.  But so far, nothing. 

[Richard Bartrop]

2 hours ago, Brett Barrow said:

Yep, Revell Germany since wasn't part of the bankruptcy filing they've been able to continue throughout with close to normal day-to-day operations.   I expect we'll hear something fairly soon re: US Revell as I'm sure the new owners will want to get the cashflow moving as soon as possible.  But so far, nothing. 

But I think we can safely assume they didn't pick up all those Revell USA moulds because they wanted some novelty planters.