Hobbico files for bankruptcy, possibly selling company

[WoodiE]

Well this is certainly something you don't like hearing, but Hobbico is filing for Chapter 11 Bankruptcy.

Hobbico distributes over 150 brands and 30 proprietary brands that include Arrma, Axial, Flyzon, Futaba, Great Planes, Dynamite, and many more.

Hobbico announced today that we are filing for restructuring under Chapter 11 of the Bankruptcy Code and that we are pursuing a process to sell or restructure the company. It’s important to know Hobbico will continue to operate the business throughout the bankruptcy process. Numerous companies across a range of industries (automotive, airlines, etc.) use this type of filing as a tool to get costs under control, create stability and build platforms for growth.

Hobbico intends to use the bankruptcy filing and a possible sale of the business to reduce our debt, restructure our liabilities, attract new investors and position the company for future growth. We carefully evaluated this vs. a number of other actions and concluded this was the best path forward.

I understand that this may be difficult news to hear. Hobbico is one of the largest U.S. distributors of radio-control and general hobby products and our business has many strengths. At the same time, Hobbico has faced and continues to face many significant challenges.

 

[i_r_beej]

Yikes! But I thought Dynamite was a Horizon Hobby house brand?

 

[WoodiE]

@i_r_beej it is, but I don't believe you have anything to worry about.

 

[Jeb]

From what I’ve been reading, we shouldn’t worry about too much this year. The changes will happen early next year. Stock up on parts in the meantime.

 

[Biz73]

Unfortunately, they need to stock up on parts first. Not much is actually in stock. I hope they pull it off, but it's not looking too good at the moment.