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Hobbico files for Chapter 11

Paulw

Well-known member
I just received word from a close friend who is a reliable source that Hobbico of Champagne, Ill. is filing for bankruptcy. Subsequently, because of this motion, Revell/Monogram are seeking new U.S. distributorship.
 
Hobbico files for BK

Damn...they're one of the two companies I've been doing reviews for...sad to see another one go :(
 
Hobbico files for BK

Aren't they part of Tower (or visa versa)?

Or is there just a collection of businesses in that area. My favorite retail shop is Omni, which is the same spot and has similar policies to Tower and also has warehouses in LV, which leads me to believe it's all connected somehow.

Saul! Help please...
 
Hobbico files for BK

ausf, I googled "Hobbico financial troubles" and got this:

http://www.news-gazette.com/news/local/2017-01-05/hobbicos-deferral-payout-upsets-confounds-ex-workers.html
(WARNING: pop up ads on this link!)

In the article, it says: Hobbico was formed in 1986, when Atkins combined two companies he bought: Don Anderson's Great Planes Model Distributors and Bruce Holecek's Tower Hobbies, which was founded in 1971.

According to its website, Hobbico has 12 different facilities, including five in Champaign-Urbana and others in Germany, the United Kingdom, California, Colorado and Nevada.

Also, per the article, Hobbico in 2016 quit or refused to make payouts to long time employees that were in ESOPs (Employee Stock Ownership Plans) so it looks like it has been going for more than a year now. hate to see that happen!
 
Hobbico files for BK

UPDATE:

http://www.news-gazette.com/news/local/2017-12-22/feds-investigating-hobbico-over-deferred-employee-stock-payments.html

Feds getting involved!
 
Hobbico goes up for auction in Chicago on 26 March. It is hoped that the sale will be approved on 28 March and handover to the new owner(s) by 06 April.

The News-Gazette

Cheers,
Rich
 
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