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Hobbico - BANKRUPT!


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8 minutes ago, Oldcarfan27 said:

Round 2 as caretaker of ALL vintage model kit tooling. Now if they could only find all the Johan molds!....

No thank you, Revell today has good mix of old and new stuff.

About finding old Jo-Han tooling, maybe try Detroit scrap yards ;)

 

Edited by Luc Janssens
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4 hours ago, Luc Janssens said:

No thank you, Revell today has good mix of old and new stuff.

About finding old Jo-Han tooling, maybe try Detroit scrap yards ;)

 

Agreed, when you include the Revell AG stuff.

Edited by martinfan5
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Today was the deadline to file objections to the Sale and/or Contract transfers relating to the sale. There was only one filing, from FoMoCo objecting to the automatic transfer of their licensing with any sale of Revell. They also objected to the amount Revell was stating the owed them - which Revell put at just over $69k. Ford said it's more like $118k and occurring late fees and licensing obligations ongoing. They did state that they would be willing to negotiate new licensing deals with whomever winds up with Revell post-sale.

I also wonder if post-filing anyone at Revell put in motion the renewal of the Chip Foose licensing, because as stated in the paperwork that expires on 3/31/18. There are a few that expire at the end of May, and everything else is signed up for at least a year down the road, or auto-renews yearly.

Edited by niteowl7710
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I haven't read every post in the thread, but the ones I have read haven't touched on a problem I have worried about. I really hope that one of their larger debts isn't owed to one of the molding companies in China, they have a record of seizing assets of companies that owe them money, and in at least one case the debt was in some doubt but they went forward with seizing all the tooling of a major diecast collectible company from the U.S. and refusing to deal with that company from that point forward and the result was that one of the better automotive diecast collectible companies was put out of the automotive part of their business and as I have seen the tooling sits in a Chinese warehouse rusting away and haven't been used since the disagreement that ended production. I really doubt that any interested company wants to also inherit Hobbico's debt owed for products they have no chance of getting any income from.

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1 hour ago, horsepower said:

I haven't read every post in the thread, but the ones I have read haven't touched on a problem I have worried about. I really hope that one of their larger debts isn't owed to one of the molding companies in China, they have a record of seizing assets of companies that owe them money, and in at least one case the debt was in some doubt but they went forward with seizing all the tooling of a major diecast collectible company from the U.S. and refusing to deal with that company from that point forward and the result was that one of the better automotive diecast collectible companies was put out of the automotive part of their business and as I have seen the tooling sits in a Chinese warehouse rusting away and haven't been used since the disagreement that ended production. I really doubt that any interested company wants to also inherit Hobbico's debt owed for products they have no chance of getting any income from.

That could be a problem for any company that has a disagreement with China. 

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On 3/17/2018 at 1:41 PM, Oldcarfan27 said:

How cool would that be?

Round 2 as caretaker of ALL vintage model kit tooling. Now if they could only find all the Johan molds!....

Finding the JoHan molds is like winning the Lotto, it just ain't gonna happen. Dream on...................................................

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Wouldn't surprise me if Amazon ended up buying Revell-o-gram since they're also planning to buy some TRU stores. I'd imagine if that were to happen it would be another hit for the retail market and the end for brick and mortar LHS's and craft stores. TBH, I prefer going through an LHS or craft store to get kits and paints since I get to see what they look like instead of receiving the product totally different from the image on Amazon (rare but happens on occasion since they clump together descriptions in such sloppy fashion) and in most cases Amazon is a little bit more for kits especially OOP ones.

Edited by RickRollerLT1
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About half of Revell's liabilities are related to their tooling in China. The bright side of that is all of their tooling is taking place in Hong Kong- which while slowly being less and less a "Special Administrative Region" - is still a lot less likely a place for a government seizure than anywhere on mainland China itself.

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1 hour ago, High octane said:

Finding the JoHan molds is like winning the Lotto, it just ain't gonna happen. Dream on...................................................

I'd be happy if they could just gather the Johan tools that we know DO exist and were in the possession of other companies and have been produced outside of Johan. The ones that were reissued AFTER Johan closed its doors.

Kits like the Chrysler turbine car, 75 Olds Cutlass snap, 59 Rambler wagon, Sox & Martin Cuda, Pro Stock Comet, 69 AMC SC Rambler and the 79 Cadillac snap.

The turbine, Cutlass and Rambler were owned by a company named Indiana Model Company just a few years ago. I'm pretty sure  the Cuda, Comet and AMC were issued by Testors about 20 years ago with cast metal wheels.

And the Cadillac came back (sort of) about 15 years ago as a Lindberg snap kit hopper lowrider. I have that one and original Johan parts fit the body. However, the chassis was replaced with that goofy hopping mechanism and the windows were all black, but it is the Johan tool and the original bumpers, chassis and interior will fit if you grind off all the big tube fittings used to hold the lowrider parts in place. Since Round 2 owns Lindberg they might already have this one and maybe the ones that Testors had when Lindberg bought their old IMC tools too.

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8 hours ago, Oldcarfan27 said:

I'd be happy if they could just gather the Johan tools that we know DO exist and were in the possession of other companies and have been produced outside of Johan. The ones that were reissued AFTER Johan closed its doors.

Kits like the Chrysler turbine car, 75 Olds Cutlass snap, 59 Rambler wagon, Sox & Martin Cuda, Pro Stock Comet, 69 AMC SC Rambler and the 79 Cadillac snap.

The turbine, Cutlass and Rambler were owned by a company named Indiana Model Company just a few years ago. I'm pretty sure  the Cuda, Comet and AMC were issued by Testors about 20 years ago with cast metal wheels.

And the Cadillac came back (sort of) about 15 years ago as a Lindberg snap kit hopper lowrider. I have that one and original Johan parts fit the body. However, the chassis was replaced with that goofy hopping mechanism and the windows were all black, but it is the Johan tool and the original bumpers, chassis and interior will fit if you grind off all the big tube fittings used to hold the lowrider parts in place. Since Round 2 owns Lindberg they might already have this one and maybe the ones that Testors had when Lindberg bought their old IMC tools too.

I just sold a JoHan Pro Stock Comet kit and a Marlin kit a few weeks ago, and have a couple more JoHan kits that I'll be parting with as I'm still "thinnin' the herd." But the JoHan kits are getting scarce as the days go by.

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11 hours ago, slusher said:

That could be a problem for any company that has a disagreement with China. 

Anything created in China is a issue. Not a China hater but if you read up on their policies around items made there (molds) it is very scary.  

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Here's my concern.....

Moebius - $63,150.73-is that enough of a hit to be fatal?

Tamiya USA - $662,854.68-will they abandon US distribution?

Testors - $302,115.91-a huge hit for a company I think is already weak

Paache - $25,929.19

MRC (Model Rectifier) - $11,454.09-what do they sell now?

Iwata - $13,002.09

Hasegawa - $38,726.24-Will they ignore US market?

Bandai Gundam - $39,717.65-see above

Badger - $13,311.91

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5 minutes ago, iBorg said:

Here's my concern.....

Moebius - $63,150.73-is that enough of a hit to be fatal?

Tamiya USA - $662,854.68-will they abandon US distribution?

Testors - $302,115.91-a huge hit for a company I think is already weak

Paache - $25,929.19

MRC (Model Rectifier) - $11,454.09-what do they sell now?

Iwata - $13,002.09

Hasegawa - $38,726.24-Will they ignore US market?

Bandai Gundam - $39,717.65-see above

Badger - $13,311.91

They will most likely settle for a fraction of what they are owed, how much will be determined by the courts. Because this is a chapter 11 bankruptcy, there is a better chance of recovering some money, usually not all. It's possible an investment group buys the whole enchilada and because most of the debt will be erased, it could be a profitable operation.

There will be more information in the coming days, hopefully it will be good news!

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4 minutes ago, mikemodeler said:

They will most likely settle for a fraction of what they are owed, how much will be determined by the courts. Because this is a chapter 11 bankruptcy, there is a better chance of recovering some money, usually not all. It's possible an investment group buys the whole enchilada and because most of the debt will be erased, it could be a profitable operation.

There will be more information in the coming days, hopefully it will be good news!

I think iBorg was referring to repercussions to the companies owed, not the repercussions to the hobbico organization...   The erased debt is going to leave all of those company's out to dry...  some may not be able to handle it...  some may choose to not come back to a market that burned them...   its a bummer regardless...  hopefully it all works out for the best.

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8 minutes ago, Impalow said:

I think iBorg was referring to repercussions to the companies owed, not the repercussions to the hobbico organization...   The erased debt is going to leave all of those company's out to dry...  some may not be able to handle it...  some may choose to not come back to a market that burned them...   its a bummer regardless...  hopefully it all works out for the best.

Yes, the first three have sizable amounts owed to them and are smaller in business size than a Paasche, Badger, Iwata and the courts will decide who gets what. The fact that Moebius has a new owner and Tamiya and Testors are part of a larger company should help.

All we can do is wait and see. I don't see the end of those businesses, but maybe they market their product differently going forward.

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6 minutes ago, Rob Hall said:

Companies like Tamiya, Hasegawa, Iwata,  etc have other US distribution channels than Hobbico, I would assume...

I'm sure they probably don't have all their eggs in Hobbico's basket either, but there are other ways to get the kits to the US that it seems some here don't realize. Hobbylink Japan is just one that quickly comes to mind as a way to get those directly from the source. 

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1 minute ago, Rob Hall said:

Companies like Tamiya, Hasegawa, Iwata,  etc have other US distribution channels than Hobbico, I would assume...

Absolutely!  While I don't know the various hobby wholesale companies around the country any more, there have pretty much always been wholesale distributors regionally across the US.  Granted, for several decades since the beginning of hobby wholesalers (Trost Modelcraft & Hobbies was, I believe, the very first one, out of the south side of Chicago beginning in 1932--hardly an auspicious time to start such a business--but they did, and were in business until just a few years or so ago).

When I had my own hobby shop (The Modelmaker 1984-92) Chicago was still arguably the center of the wholesale side of the industry--Trost, United Model Distributors, Midwest Model Supply, and another whom I never did any business with).  Great Planes had just gotten really going in Champaign IL,  Wm. K. Walthers (on the train side of hobbies) having been in business in Milwaukee since about 1940. There are a couple of fairly large wholesale houses on the East Coast, and of course, the same on the West Coast.

Art

 

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1 minute ago, highway said:

I'm sure they probably don't have all their eggs in Hobbico's basket either, but there are other ways to get the kits to the US that it seems some here don't realize. Hobbylink Japan is just one that quickly comes to mind as a way to get those directly from the source. 

Yes.. it's been many years since I've bought a Japanese kit in the US---at least a decade-- HLJ and Hobby Search are my go-to vendors for them...

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