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HobbiCo / Great Planes / Tower Hobbies

JatoTheRipper

JatoTheRipper

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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?
 
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
 
Last edited:
The whole umbrella is collapsing, places I know of that used to get their inventory from great planes use A-main now.
 
soze said:
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
Click to expand...
Damn I missed the MIP news.

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

ROWDY RACING said:
The whole umbrella is collapsing, places I know of that used to get their inventory from great planes use A-main now.
Click to expand...
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.
 
MIP sent customers this email 11/17 I think:
7b288b5184429b0e7dd49a471e61b243.jpg

I was told STRC is also not available


Hang up and Drive
 
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.
 
mikemcE said:
MIP sent customers this email 11/17 I think:

I was told STRC is also not available


Hang up and Drive
Click to expand...
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.

skinnyj said:
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.
Click to expand...
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.
 
skinnyj said:
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.
Click to expand...

Link to article?
 
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).
 
svt923 said:
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).
Click to expand...
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.

soze said:
I guess I need to pick up that kit I've been hesitating on when my ecash rewards come in.
Click to expand...
Yep, spend that eCash before the end of the year! You never know what the future holds, sadly.
 
skinnyj said:
4th paragraph. It doesn't mention anything specific, but it seems to fit.

The Cub Report
Click to expand...


Speaking of scoops, I received a lot of email from last week about the industry news I was talking (teasing) about. First off, for all you industry types that don’t think you know what it is, well, I think you do. While hard to imagine, and not really good news for anyone in the industry, looks like it isn’t a matter of if, but a matter of when and how. And for the real haters out there, you might actually wanna listen this time around. Or, you can just be mad forever. In that case, have fun packing that around on your shoulders the rest of your life. I personally will be walking around without any dead weight on my shoulders, life is too short, and stressful enough the way it is.
Click to expand...

Hater=traxxas?
 
Ditchrat said:
Hater=traxxas?
Click to expand...

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...
 
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
 
soze said:
Seems like Horizon Hobby is suffering too?
Click to expand...

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.
 
"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.
 
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