Tuesday, April 22, 2014

R.I.P Model Power

Today, when I popped onto the Model Railroader forum, I was unpleasantly surprised to find out that Model Power has gone out of business. The following message was posted on MP's web site, www.modelpower.com:

Dear Model Power Customers,

After nearly 50 years serving the hobby industry, our 3rd generation family business will closing effective immediately.

In 2007, our banks began an aggressive deleveraging process. They no longer approved of a profitable and paying client such as ours, which had been reliant on inventory. This is why one of the industry's most extensive lines, had begun to see much of its products unavailable on the market. Now it will no longer be seen at all.

During these past 7 years, we had made changes to the business in order to accommodate and adjust to the changing nature of the business relationship with our lenders. We had offered multiple solutions to our lenders in order to "fix" our situation, all were rejected, came with different restrictions, or offered to little too late. In all our efforts, no arrangements by our lenders would allow for Model Power to arrive at a position in which we could get back to fill our customer needs.

We would like to take the time to thank all of those whom we have worked with the past 50 years. To our customers and competitors within the industry, we thank you.

The Model Power Family

Not only am I sad to see Model Power run out of business, but it also throws a huge monkey wrench into my layout plans. I was planning on using a number of their reasonably-priced house kits for the Gallitizin area of the layout. However, I wasn;t planning on buying them until for quite some time. But now I have to use the money I'd set aside for finishing the engine yard to buy the house kits before they sell out.

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