Hello, thank you for being patient and waiting for the official news from me.
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.
Undoubtedly, there will be rumors covered in the media, social media sites and forums. I know you cannot control what your fans share or their discussions, I just hope you will help support us and the industry by being positive and stating the facts if need be. I’m here for you, so please reach out to me with any specific questions that are not answered in the attached release.
Thank you as always for being wonderful,
Nat
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Natalie Rodrigues
PR & Content Manager
nrodrigues@hobbico.com
217.398.3630 x1410
Download the Press Release on the link below.
