Hobbico restructuring under Chapter 11

Hobbico restructuring under Chapter 11

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.

Gary Mortimer

Founder and Editor of sUAS News | Gary Mortimer has been a commercial balloon pilot for 25 years and also flies full-size helicopters. Prior to that, he made tea and coffee in air traffic control towers across the UK as a member of the Royal Air Force.