Sad news for those of us that have been around a while, I have had several Hobbico models and many many bits and pieces from them over the years.
The NexSTAR model in RC Simulator RealFlight must have launched a thousand hobbyists.
Hobbico announced today that they are filing for restructuring under Chapter 11 of the Bankruptcy Code and that they 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 debt, restructure liabilities, attract new investors and position the company for future growth.
They 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.