HobbiCo / Great Planes / Tower Hobbies
 

Does anybody know what in the world is going on? Tower is out of stock on lots of products especially those brands that do not fall under the HobbiCo umbrella. This is rare for them. I just went to look up MIP tools and MIP is completely MIA from Tower's website. Again, that's very odd.

There have been rumors and news stories (see the link below) for a year or two about financial issues and things just don't seem to be "normal" at Tower lately.

Hobbico's deferral of payout upsets, confounds ex-workers | News-Gazette.com

Thoughts? Input?

Re: HobbiCo / Great Planes / Tower Hobbies
 

MIP pulled out from selling with Hobbico/Tower last month.
Traxxas was dropped a few months before...

About the only thing I go to Tower for now is Tamiya, Kyosho, Pro-Line, Axial

Re: HobbiCo / Great Planes / Tower Hobbies
 

The whole umbrella is collapsing, places I know of that used to get their inventory from great planes use A-main now.

Re: HobbiCo / Great Planes / Tower Hobbies
 

Damn I missed the MIP news.

I know about the Tower / Traxxas lawsuit and that fallout though.

Interesting! My LHS uses Great Planes. I should stop in and pick his brain. I really hope I'm wrong, but it smells like a bankruptcy and liquidation or possible closure coming.

Re: HobbiCo / Great Planes / Tower Hobbies
 

MIP sent customers this email 11/17 I think:
https://uploads.tapatalk-cdn.com/201...471e61b243.jpg
I was told STRC is also not available


Hang up and Drive

Re: HobbiCo / Great Planes / Tower Hobbies
 

Team Associated started selling with Horizon, which is interesting considering Horizon is their main rival's distributor.

It makes me wonder if this is what BSRC was alluding to when they said there was something pretty big (and not good) about to happen in the industry.

Re: HobbiCo / Great Planes / Tower Hobbies
 

Thanks for the pic. I do not get their emails so I didn't see that.

STRC items are listed, but most are out of stock.

This is not looking good.

I also thought it was weird when Horizon was selling Associated. As you said, Associated is Losi's biggest rival!

A friend mentioned the BSRC article to me. I hadn't seen it. But I'm starting to get worried that it is about one this company.

Re: HobbiCo / Great Planes / Tower Hobbies
 

Link to article?

Re: HobbiCo / Great Planes / Tower Hobbies
 

The rumor is that the Traxxas lawsuit is draining them, financially.

Re: HobbiCo / Great Planes / Tower Hobbies
 

4th paragraph. It doesn't mention anything specific, but it seems to fit.

The Cub Report

Re: HobbiCo / Great Planes / Tower Hobbies
 

Nearly all the Tamiya vehicles are out of stock at Tower too.

Gift certificates to Tower may not be a good present this holiday season (unless you really want an Axial or anything from Arrma that isn't a Nero).

Re: HobbiCo / Great Planes / Tower Hobbies
 

I guess I need to pick up that kit I've been hesitating on when my ecash rewards come in.

Re: HobbiCo / Great Planes / Tower Hobbies
 

Yes, they are. I thought it was just an issue with popular products, but then a friend pointed out most everything was out of stock.

Yep, spend that eCash before the end of the year! You never know what the future holds, sadly.

Re: HobbiCo / Great Planes / Tower Hobbies
 

Hater=traxxas?

Re: HobbiCo / Great Planes / Tower Hobbies
 

That is the one really cryptic statement. I'm not saying this is about Hobbico, like I know anymore than the rest of you. I'm sure most of you are more plugged in than me in the industry.

However, there are certain dots that may connect...

Hobbico can't make option payouts in 2016.

Traxxas sues over the Nero and pulls distribution.

Hobbico laid off more people in 2017, allegedly because the lawsuit is draining them.

Associated partners up with rival Horizon/Losi.

MIP ends relationship.

Lots of non-Hobbico brands on "backorder" or "order pending"

If you look at Horizon's site vs Tower's in the Associated section for example, Horizon has more in stock than Tower. So, it isn't a supply problem. It makes me wonder if Hobbico is having trouble paying their bills. I hope that is not the case...

HobbiCo / Great Planes / Tower Hobbies
 

I was told by my LHS that they can’t get select brands (from Great Plains) due to the Traxxas lawsuit , these partners depend on Traxxas sales to sell their products, so they are applying subtle pressure back at Hobbico and it seems to be working


Hang up and Drive

Re: HobbiCo / Great Planes / Tower Hobbies
 

16% of their workforce according to this article.

On the jobs in Champaign County | News-Gazette.com

They have dropped from 700 employees in 1997 to a little over 400 in 2017.

Re: HobbiCo / Great Planes / Tower Hobbies
 

Seems like Horizon Hobby is suffering too?

Re: HobbiCo / Great Planes / Tower Hobbies
 

Maybe. The industry as a whole is down. However, I'm sure fighting with Traxxas isn't helping Hobbico's financial situation. Even if Hobbico wins, the attrition from a long legal process will be crippling.

Re: HobbiCo / Great Planes / Tower Hobbies
 

"Hobbico has experienced many difficulties this last year, such as intensified competition and what appears to be a hobby-industry recession,"

Is it that the hobby industry is in recession, or are we, the customers finding better/cheaper places to get our wears? I have bought a couple of things through Tower this last year, but I do a lot more buying through my LHS, Amazon, and other hobby sites. I don't think the problem is not having enough mustard, the problem is that it is being spread thinner.