Author Topic: Hobbico files for bankruptcy  (Read 61 times)

Offline Grendels

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Hobbico files for bankruptcy
« on: Thu Jan, 11, 2018, 11:11:PM »
The parent company of Revell files for bankruptcy:

http://www.uavexpertnews.com/2018/01/hobbico-files-for-bankruptcy/

Offline Elm City Hobbies

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Re: Hobbico files for bankruptcy
« Reply #1 on: Fri Jan, 12, 2018, 02:06:PM »
Yeah, will be interesting to see what happens.

Revell USA, Revell Germany and Estes are probably their biggest assets, I could see them packaged together (RUSA and ROG at least) and sold off to help pay the debt down.

Bankruptcy protection, just means they can keep operating without their creditors breathing down their neck and possibly ceasing operations.

Offline Grendels

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Re: Hobbico files for bankruptcy
« Reply #2 on: Fri Jan, 12, 2018, 02:33:PM »
If you read the report, their liabilities are near $300 million, with assists of $30 million.    sounds like they have been living on credit for too long.....

Like your typical American I might add.   :P

Offline Elm City Hobbies

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Re: Hobbico files for bankruptcy
« Reply #3 on: Fri Jan, 12, 2018, 05:24:PM »
I think the biggest issue is they expanded too much, too fast, and took on too much debt in the process.

They failed to change with the trends in the RC markets, pretty much doomed from the start of their expansion.

Been some rumors of some funny business with their stocks as well.

We will likely see them sell off the model end of the business (RUSA and ROG), as it would get them some quick cash and is likely worth the most between the molds and the licenses that they have.

Not sure who would have the cash to pony up and buy those 2. Some people have been saying Round 2, but I doubt they have the cash to do so.