Model Power Going Out of Business

[kschmidt626]

Just saw that Model Power has announced that it is shutting down after over 50 years.  I know that Model Power had taken over the Mantua Line also.  They didn't do a lot of N scale but I just thought I would pass this along.  To bad losing another Model Railroad company and losing jobs. 

Keith Schmidt

[tom mann]

Too bad.  There is some more information here:  http://www.modelpower.com/default.asp

Sorry to see them go.

[Dave V]

Too bad indeed.  Guess those 4-4-0s will start to skyrocket on eBay.

[Smike]

I'm sure glad to see that $2 billion a month in money (um...printing) by the Feds pumped directly into banks is making lenders more able to loan to business in the general public......not 

More of same in this "new" economy.

[C855B]

I'm sure glad to see that $2 billion a month in money (um...printing) by the Feds pumped directly into banks is making lenders more able to loan to business in the general public......not ...

It's not quite that easy. Their mea culpa pretty much stated their operating model was to tie-up assets in inventory and rely on bank lines of credit for their daily working cash. That is seriously old-school, and does not work any more in this era of über-low commercial and inter-bank interest rates. Hobbyists wonder why it's such a pre-order world now, and this is one of the reasons why - high levels of standing inventory is considered an evil sign of a poorly-managed company. And that's the way it is. 

[DKS]

So I wonder who takes possession of their 40+ year old, fourth-hand tooling for all of those old structure kits?

[Dave V]

So I wonder who takes possession of their 40+ year old, fourth-hand tooling for all of those old structure kits?

Well, I heard that NZT was buying their entire line of N, but I don't want to start rumors... 

[Puddington]

It's noteworthy that they specifically mention "inventory based" business.... Banks hate inventory; is it any wonder that many companies, including Rapido, are "announce, take orders, make what you have orders for, move on"....... ?

Thanks for trying Model Power......

[MichaelWinicki]

It's not quite that easy. Their mea culpa pretty much stated their operating model was to tie-up assets in inventory and rely on bank lines of credit for their daily working cash. That is seriously old-school, and does not work any more in this era of über-low commercial and inter-bank interest rates. Hobbyists wonder why it's such a pre-order world now, and this is one of the reasons why - high levels of standing inventory is considered an evil sign of a poorly-managed company. And that's the way it is. 

Well said.

Inventory that doesn't turn rapidly enough is big "no-no".

There's a reason why Walthers' comes out with products that have a high-retail and then slash the prices to nothing not long thereafter.

[daniel_leavitt2000]

Well this sucks. I wonder how far they got on their SW1500 project before pulling the plug. Curious to see what becomes of the stream engine line. The structures were always junk, but even their original owner Pola is out of business.

Someone in China could get rich collecting all this derelict ţ tooling and starting a new company up.

[delamaize]

Well, Crap. Guess I need to pick up a few more 4-4-0s and 2-6-0s, they are a few of my favorite locos.....

[sumfred]

It's a shame that they did not pick up on the improvements they made on the 4-4-0 for Micro-Trains and implemented them on their other steamers.
The traction tire and pilot pick-up along with the improved tender pickup are very nice indeed. Managed to snatch a second 4-4-0 from MT before they were gone.
The 2-6-0's with the traction tire are some of my better puling engines (after converting to Bachmann tender trucks for pick-up)
Fred

[u18b]

Well, if you go to the Clearance trains section.....

You can buy a cheap F7 dummy....... except it is an FP7

I hate it when manufacturers don't even know their own inventory.
Had the same experience with a call to Bachmann years ago.  Person on the phone was clueless about the actual trains they sold.

[u18b]

I just went to the locomotive page.

They have an FP7 with DCC and sound.

Did anyone know they sold a loco with DCC and sound?  I didn't.



(counting the seconds until someone on this forum quotes this post and types.....

"does anyone care?"  Hahaha.  5, 4, 3, 2, ... )

[Denver Road Doug]

I am sorry to see them go, if for no other reason that they did have a place in our hobby.   Just because it wasn't the place I normally dwelled, doesn't mean they weren't valuable to the overall picture.

I only know of one Model Power item I currently own, and that's the Exxon gas station.   But not having the steam locomotives they made as an option will be a blow to n-scale, I think.