RunRyder RC
WATCH
 2 pages [ <<    <    ( 1 )     2     NEXT    >> ] 3045 views POST REPLY
HomeAircraftHelicopterHelicopter Main Discussion › Horizon buys up Tower Hobbies!
04-07-2018 08:28 AM  7 months agoPost 1
InvertedDude

rrVeteran

USA

My Posts: All  Forum  Topic

Looks like Tower Hobbies was approved by BK court for Horizon buy out!!!

I am okay with it! Yippie!
Important Notice Regarding the Sale of Your Personal Information and Your Right to Opt-out

Dear Valued Customer:

As you may be aware, Tower Hobbies' parent company, Hobbico, declared bankruptcy in January 2018 and has initiated a sale process.

We are excited to share with you that the RC brands and Tower Hobbies website that you have come to rely on over the years will continue. The Bankruptcy Court has approved the sale of Hobbico's RC business to Horizon Hobby, LLC. Horizon Hobby has been in business since 1985 and serves customers in the United States and around the World. Horizon Hobby also maintains a strong online presence and warmly welcomes Hobbico customers to its growing family. With this acquisition, Horizon Hobby looks to build upon Hobbico's great reputation for providing quality RC products to customers across the country. More information about Horizon Hobby can be found at https://www.HorizonHobby.com.

As part of the sale, Horizon Hobby is purchasing Tower Hobbies' customer databases. The Tower Hobbies Privacy Policy provides that the company will not share any personally identifiable information with any third party without your consent. Under this Privacy Policy, you have the right to opt-out of the sale and the transfer of your personal information to Horizon Hobby, and of receiving future e-mail or mail communications from Horizon Hobby.

You may elect to opt out by any of the following methods:

Clicking the link at the bottom of this email message;
Sending an e-mail to Tower Hobbies' web master at info@towerhobbies.com with the information necessary for Hobbico to identify you in its database and process your opt-out election (such as your name, email address, street address and telephone number);
Calling the Tower Customer Service at 800-637-6050 or;
Mailing to the following address:
Tower Hobbies
PO Box 9078, Champaign, IL 61826
Please include in your letter the information necessary for Horizon Hobby to identify you in its database and process your opt-out election (such as your name, email address, street address and telephone number). Please note that opting out will remove your proof of purchase data required for warranty service.

If you opted in to receive promotional emails from Tower Hobbies, you may also receive promotional emails from Horizon Hobby unless you opt out of having your information conveyed to Horizon Hobby.

Your request to opt out must be received no later than April 6, 2018.

After the opt-out deadline, Horizon Hobby has offered to conduct a sweepstakes for Tower Hobbies customers who decline to opt-out as a thank you for your interest. We thank you for your past patronage and hope you will always continue to enjoy the RC hobby.
Sincerely,
Tower Hobbies

PM  EMAIL  GALLERY  Attn:RR  Quote
04-07-2018 12:59 PM  7 months agoPost 2
870heli

rrVeteran

Monson Ma. USA

My Posts: All  Forum  Topic

So it looks like Hobbico is gone. Sold to Horizon. From what I read Tower Hobbies is still in business. There sight is still up and it looks like everything is normal. I guess time will tell.

PM  EMAIL  GALLERY  Attn:RR  Quote
04-09-2018 06:15 PM  7 months agoPost 3
rcscaleguy

rrNovice

CA, USA

My Posts: All  Forum  Topic

Pricing
Compare Horizon Hobby website to TowerHobbies. While they may have purchased the pricing sure has not translated. For instance look at Zap adhesives for example. While these are small items dealer I'm sure love this. As a consumer I'm sure we all need to look at the new Tower site HH that's been in development for 7 years running.

PM  EMAIL  GALLERY  Attn:RR  Quote
04-09-2018 08:01 PM  7 months agoPost 4
Heli_Splatter

rrElite Veteran

USA

My Posts: All  Forum  Topic

It does look like Futaba radios are in stock. So maybe that arrearage has been resolved. It has only been a week since the purchase was agreed, so I am sure that a lot of changes that are planned have not even started.

PM  EMAIL  GALLERY  Attn:RR  Quote
06-20-2018 03:50 PM  4 months agoPost 5
wjvail

rrKey Veteran

Meridian, Mississippi

My Posts: All  Forum  Topic

The unthinkable has happened. I just visited Tower Hobbies and did a search for Spektrum and E-flite. Yup. They are on Tower. I had money on the second coming of Jesus Christ before Tower sold Spektrum. What's next? Arabs and Jews living in peace?

I don't see Satio yet but I can only assume that is next.

https://www.towerhobbies.com/cgi-bi...SEARCH=spektrum

"Well, Nothing bad can happen now."

PM  EMAIL  GALLERY  Attn:RR  Quote
06-20-2018 04:29 PM  4 months agoPost 6
JLF92677

rrApprentice

Southern California

My Posts: All  Forum  Topic

Spektrum has been listed on Tower for several weeks now. Not sure why this is a surprise to you Bill, Tower is owned by Horizon which represents Spektrum, it is only logical that they would continue to promote and sell same through every mail order channel they own. BTW Tower vs Horizon mail order market penetration to end user customer is 10:1, so it makes even more sense for them to channel as much as they can through Tower. Most of Horizon's traditional business was through hobby shop sales.

On the other hand Futaba continues to be missing in action, now going on for almost 6 months; not a good marketing or business move. Yes, I heard it before... we need to be patient... In today's world, everyone including Futaba needs to move faster. Futaba is not going to lose me as a customer, but I am starting to wonder how much the delay in setting up shop in Alabama with no secondary distribution channel in USA is going to hurt their market share.

PM  EMAIL  GALLERY  Attn:RR  Quote
06-20-2018 07:10 PM  4 months agoPost 7
wjvail

rrKey Veteran

Meridian, Mississippi

My Posts: All  Forum  Topic

JLF92677
Spektrum has been listed on Tower for several weeks now. Not sure why this is a surprise to you Bill, Tower is owned by Horizon which represents Spektrum, it is only logical that they would continue to promote and sell same through every mail order channel they own.
Well. It's like this. I bought my first glow model in 1967 on my 7th birthday. 4 years later in 1971 Tower Hobbies was established. In 1985 Horizon Hobby was established. If there has been a constant for the last three decades, it's been that Futaba/OS come from Tower and Spektrum/Satio come from Horizon. It just seems very odd to see Spektrum on Tower.

Try thinking of it like this... We all know that Ferrari is owned by Fiat and that Fiat and Chrysler have merged. Would you look twice if one day while walking down the street you noticed a Dodge minivan with a prancing horse and "Ferrari" under it? It would not be unreasonable and might even be expected. Ferrari is owned by Chrysler and it isn't outside the realm of possibility Fiat/Chrysler would leverage the Ferrari name. Still, it would still stick out. Right? "Ferrari Caravan".
JLF92677
On the other hand Futaba continues to be missing in action, now going on for almost 6 months; not a good marketing or business move. Yes, I heard it before... we need to be patient... It today's world everyone, including Futaba needs to move faster. Futaba is not going to lose me as a customer, but I am starting to wonder how much the delay in setting up shop in Alabama with no secondary distribution channel in USA is going to hurt their market share.
No doubt about it. Futaba is spending money right now. But I wonder this... Hobbico owed Futaba over 2 million dollars. Horizon was unwilling to assume this dept. More surprising, Futaba was unwilling to forgive the dept. Why would Futaba do this? Wouldn't Futaba have been better off quickly moving under the Horizon umbrella? Couldn't Futaba have worked out an arrangement with Horizon to work off the dept over time, or even forgive all or some of it? Couldn't they have been selling products for the last 6 months? Horizon is a well like and respected distributor. Why would Futaba choose to go it alone?

I suggest Futaba was worried about being distributed by Horizon who is also committed to distributing their own in-house brand, Spektrum. If this is what Futaba was indeed thinking, their fears have some merit. Some insight may come from the other radio brand Horizon had as an exclusive distributorship- JR. It would be an understatement to say JR has not done well. Futaba/OS may have sized up what life under Horizon might be like and decided that they will suffer today to end up in a better position tomorrow. Delayed gratification. One step backwards to take two steps forwards. Admittedly Futaba's situation today is painful but maybe we will end up better off in the long run.

"Well, Nothing bad can happen now."

PM  EMAIL  GALLERY  Attn:RR  Quote
06-20-2018 09:00 PM  4 months agoPost 8
JLF92677

rrApprentice

Southern California

My Posts: All  Forum  Topic

Bill, your Ferrari / Fiat / Chrysler comparison to Tower / Horizon analogy is not valid. Ferrari / Fiat / Chrysler are manufactures of finished product no different than Futaba and Spectrum. Tower and Horizon are mail order houses / distributors (and yes Horizon in-house Spektrum.) Have you shopped at Best Buys or any other retailer and discovered that they sell Sony, Samsung, LG and other products brands that compete against each other? Yes off course... this is providing consumers with product choice.

With regard to Futaba forgiving Hobbico's debt or not, or whether they feel comfortable with Horizon or not as a distributor is not for me to judge. That is a business decision they need to make on their own. But let me suggest this to you; Futaba USA closed doors in Irvine in 2001 and Futaba Japan transferred their import business rights to Hobbico. This was done to reduce cost and distribution overhead in order to compete with JR at the time, which was imported directly by Horizon with no middle man, hence a lower cost point to market. Hence, the relationship between Hobbico and Futaba was very close and cozy and as such they should have managed it much better and closer to keep a finger on Hobbico's financial pulse and not allow it to get as bad as it did. Further they should had seen the train coming off the tracks early on and should have put backup plans in place to avert the mess and lack of product supply and service that we, the US consumer have endured for the last few months. Instead of being proactive, they waited until the final curtain call only be be on a reactionary mode. Comparing Futaba to JR is not even a fair comparison from a financial strength standpoint. Futaba's financial strength is huge due to their auto industry and other commercial business activities which JR did not have, not to mention Futaba's strong technical prowess. We can only hope and pray that same corporate financial strength and interest in RC radio hobby products will continue to fuel the Futaba RC business that we have known for the past few decades.

We can all relish the past and what we were used to, but business is business and customer base along with market share is king. Ignoring that fact is a recipe for failure. You, me along with many others only wish a very successful outcome to Futaba USA current status. However, they need to kick their new USA business strategy (whatever that is...) in high gear and get on with the program before much time passes of no product supply and as importantly service.

My thoughts are offered as a wake up call not criticism.

PM  EMAIL  GALLERY  Attn:RR  Quote
06-20-2018 10:52 PM  4 months agoPost 9
wjvail

rrKey Veteran

Meridian, Mississippi

My Posts: All  Forum  Topic

JLF... I'm not sure we are disagreeing. In fact I think we are on the same page. My comment in post #5 was more about the spectacle than the fact that it happened. Of course Spektrum was going to appear on Tower. That was an inevitability. The subject of this thread is "Horizon Buys Up Tower Hobbies". Horizon said they would start putting their products on Tower. Really no surprise when they did. My comment was that after decades I find it odd to see E-flite on Tower. My analogy to Ferrari was to suggest that if Chrysler said it was going to re-badge all its cars with Ferrari it shouldn't surprise anyone when they did it - but wouldn't you find it odd the first time you saw it? I really didn't mean more than that.
JLF92677
Hence, the relationship between Hobbico and Futaba was very close and cozy and as such they should have managed it much better and closer to keep a finger on Hobbico's financial pulse and not allow it to get as bad as it did. Further they should had seen the train coming off the tracks early on and should have put backup plans in place to avert the mess and lack of product supply and service that we, the US consumer have endured for the last few months. Instead of being proactive, they waited until the final curtain call only be be on a reactionary mode.
The relationship between Futaba and Hobbico may have started out cozy but I don't believe it stayed that way. I believe Futaba was very well aware of Hobbico's problems and for some time was far from happy with Hobbico's marketing and pricing of its products. I certainly don't know exactly what the legal agreement between Hobbico and Futaba stipulated but I don't believe Futaba had the option to seek alternate distribution until the contract was nullified in Hobbico's bankruptcy.

I would go on to say that in addition to not wanting to enter an agreement with Horizon to distribute their products because they saw that as a conflict of interest, Futaba had grown so frustrated and weary of a failing relationship with its US distributor, they choose to forgo a US distributor altogether. It is not hard to imagine the frustration of the Japanese people of Futaba when they saw their products being sold in America by its one-and-only importer and 20, 30, 40% above what they could be bought for in Japan. Futaba may have at one point entered an agreement with Hobbico to eliminate the import branch of its supply chain and thereby reduce costs. That may have worked in the beginning but in the end Hobbico had become an unresponsive, bloated, failing, middleman resulting in a far worse situation than they started with. I have to believe Japan wanted to avoid that mistake again.

But as I began with, I think we are in many ways arguing the same points.

"Well, Nothing bad can happen now."

PM  EMAIL  GALLERY  Attn:RR  Quote
06-20-2018 11:37 PM  4 months agoPost 10
InvertedDude

rrVeteran

USA

My Posts: All  Forum  Topic

Interesting
I like flying RC stuff....who makes the product and it is dependable gets my money. Politics and bankruptcy have destroyed everything!

If Horizon positions itself as the leaders in RC with valid products I can buy to enjoy my RC Helicopters...politics and bankruptcy can kiss my arse!

Too many dummies with no business sense in the real world go bankrupt and we all pay the price for it.

I want to fly and I enjoy the challenge of mastering RC Helicopters. So to any business that provides RC products, pls be smart and articulate in your dealing in downtrends and uptrends of business. I want you all to stay in business!

PM  EMAIL  GALLERY  Attn:RR  Quote
06-21-2018 12:44 PM  4 months agoPost 11
Dr.Ben

rrMaster

Richmond, VA, USA

My Posts: All  Forum  Topic

Edited.

Peak Aircraft/Team Minicopter Team Futaba Team Kontronik USA

PM  EMAIL  GALLERY  Attn:RR  Quote
06-22-2018 03:45 AM  4 months agoPost 12
JLF92677

rrApprentice

Southern California

My Posts: All  Forum  Topic

Dr. Ben,
Is that an anecdotal understanding of the distributorship agreement or a first hand understanding by having read copy of the actual agreement? However, if it is the later, then it certainly boggles anyone’s mind (at least business or legal person) that such an agreement would have been crafted and executed by Futaba, as same should have incorporated busienss performance metrics for each party and off ramps to exit agreement by either party if business metrics were not achieved. It is difficult to understand that Futaba legal department would not have included same in subject agreement considering the fact of their corporate size and that same is covering the largest RC market in the World and hence, put at risk as it has, a significant revenue stream if the business partner (Hobbico) went south as it did. However, I suppose anything is possible.

That said, what is more puzzling is the absence of official communications from Futaba with their costumer base, other than “Coming Soon” with no stated date as per their new website under construction: https://futabausa.com

PM  EMAIL  GALLERY  Attn:RR  Quote
06-22-2018 05:38 AM  4 months agoPost 13
Dr.Ben

rrMaster

Richmond, VA, USA

My Posts: All  Forum  Topic

In the twenty years I have flown for Futaba, I have not one single time posted anecdotal information. Be that as it may, I have deleted my original post. It is not appropriate for me to sit here and recount the facts, and they are facts, not heresay, and have the community sit in judgment of the company as de facto Monday morning quarterbacks. The details behind and reasons for business and contractual decisions made by Futaba years ago in a completely different economic and business climate are the concern of Futaba and Futaba alone. All that really matters at this point now is that everything will be settled and in place in about six weeks. Product is on the water, service center opens next week, and the e-commerce site is prepared to go live when stock arrives.

Ben Minor

Peak Aircraft/Team Minicopter Team Futaba Team Kontronik USA

PM  EMAIL  GALLERY  Attn:RR  Quote
06-22-2018 06:41 AM  4 months agoPost 14
JLF92677

rrApprentice

Southern California

My Posts: All  Forum  Topic

It is a simple question, did you have access to read the original Futaba/Hobbico distribution agreement document or not? Yes or no. If not, then it is an anecdotal account. And if your post is/was factual, why then edit the post to remove same? This has nothing to do with Monday morning quarterbacking, has everything to do on how to pick up the pieces and move forward in a swift and effective manner to support their business and as importantly their loyal customer base that makes their business possible. 6 months plus is not an accepatble or prudent business market presence vacuum for any business model.
Dr.Ben
All that really matters at this point now is that everything will be settled and in place in about six weeks. Product is on the water, service center opens next week, and the e-commerce site is prepared to go live when stock arrives.
Why then does Futaba elect not to provide above statement and timetable on an official basis but rather through proxy? It is not that complex or difficult to perform. Or is it? Very perplexing....

PM  EMAIL  GALLERY  Attn:RR  Quote
06-22-2018 03:14 PM  4 months agoPost 15
wjvail

rrKey Veteran

Meridian, Mississippi

My Posts: All  Forum  Topic

JLF92677
Why then does Futaba elect not to provide above statement and timetable on an official basis but rather through proxy? It is not that complex or difficult to perform. Or is it? Very perplexing....
JLF... The official Futaba channels won't say this but everything I see suggests that Futaba/OS is in crisis management mode. They lost their US distributor, they lost millions in bankruptcy, flying season 2018 is in full swing and you can't find a R7008SB receiver or Futaba gyro in stock in America.

When I say crisis mode I mean, Futaba has 100,000 things on its to-do list and not 1/2 of the resources to get them done in a time frame that would benefit you, me or them. They have buildings to rent, people to hire, stock to catalog and computers to power up to log items into. They have tax forms to complete and bench test equipment to power up. They have a dealer network to reestablish.

Faced with having to make difficult choices about what to tackle first and what to ignore, it seems HRC has chosen to prioritize setting up the distribution center and, bluntly, chosen to move press releases and web site development to the bottom of the list. Communication with Joe modeler seems to have been neglected in an effort to get product back on the shelves.

Let's remember, going forward HRC will likely be transparent to the average modeler. Most modelers will never know that when they buy a new Futaba/OS item in America, from any retailer, they are buying from HRC. Very shortly there will be Futaba and AMain (or ExperienceRC or Tower or _____) and consumers will have no need to know of the intermediary entity HRC. How much is to be gained by Futaba talking about HRC? Wouldn't they be better off letting HRC live in the shadows? HRC isn't selling anything. GrandRC is selling. Futaba is selling. HRC is supplying.

Ben may not post anecdotally. I on the other hand do (but I think I'm clear about that). In this case I see a company that is faced with a choice between playing up its new center or allocating resources to getting back to a point where we can add-to-cart. It doesn't have the option of doing both. You and I certainly don't like being neglected but if this is required to keep the radio equipment we like available in the future, I say press on. I'll catch up later.

"Well, Nothing bad can happen now."

PM  EMAIL  GALLERY  Attn:RR  Quote
06-22-2018 04:59 PM  4 months agoPost 16
JLF92677

rrApprentice

Southern California

My Posts: All  Forum  Topic

Bill, it is all about business results. To us it is a hobby. To Futaba it is a business. A business to stay viable needs a few basic key ingredients: product, service, buying customers and profits. Not suggesting this is a complete list by any means, but just the bare bone basics. As you suggested, if customers are being neglected, they will put up with it to certain point. But beyond that point, customers do have choices and will find ways to satisfy their needs, even if it means departing to a different product solution. RC customer base is limited, as is everything else in this world. Once Futaba customer base shrinks, so does sales and profits making it more difficult to fuel their business engine. As stated earlier "customer base along with market share is KING." If the customer base is neglected, same will create a business need vacuum that competitors will be more than happy to fill along with a diminishing return of a smaller customer base. Once that void is filled by competition, getting it it back comes at a very expensive cost, IF and WHEN it can be regained once again. Business results is not about making 100,000 excuses or reasons as to why things are the way they are; it is all about providing working business solutions on a timely manner to satisfy market demands and customer needs. So to your point:
wjvail
flying season 2018 is in full swing and you can't find a R7008SB receiver or Futaba gyro in stock in America.
So how long do you suppose you will wait for this situation to correct itself before you punt and move on because you cannot find a R7008SB so you can fly your vintage bipe or gyro for your new heli and not miss 2008 summer flying season...?

PM  EMAIL  GALLERY  Attn:RR  Quote
06-22-2018 06:41 PM  4 months agoPost 17
banshee rider

rrApprentice

Phoenix AZ.

My Posts: All  Forum  Topic

I dont know how long everybody else will wait
but I will just buy stuff that I have to have from https://www.rcjapan.net/index.php?m...pa8ci4k87raf7t7

Till its available here in the states again
and possibly even afterwards
depending on how much price difference there is !

I bought very little thru Tower because they gouged people so much
I am not sorry to see them go

ageing is manditory maturity is optional

PM  EMAIL  GALLERY  Attn:RR  Quote
06-22-2018 06:47 PM  4 months agoPost 18
banshee rider

rrApprentice

Phoenix AZ.

My Posts: All  Forum  Topic

Also the R.C. hobby is a very small portion of Futaba's income
they can take there time and do it right

They may lose a few new people but over all people like me
are not going to switch during the time it takes for them to get up and running again

ageing is manditory maturity is optional

PM  EMAIL  GALLERY  Attn:RR  Quote
06-23-2018 04:04 AM  4 months agoPost 19
Gearhead

rrMaster

Vt

My Posts: All  Forum  Topic

wjvail
JLF... The official Futaba channels won't say this but everything I see suggests that Futaba/OS is in crisis management mode. They lost their US distributor,
as of now Horizon is OS's distributor,,, if you go to OS's site and click on "Support" then click on "Service Center" it will bring you to Horizon , Horizon will be good for OS

https://www.osengines.com/contact.php

Jim
Buzz Buzz Buzz

PM  EMAIL  GALLERY  Attn:RR  Quote
06-23-2018 01:13 PM  4 months agoPost 20
rpat

rrElite Veteran

Weirton, W. Va.

My Posts: All  Forum  Topic

I have an OS 120 surpassII that needs fixed. Called the Tower number and was put through to Horizon Service center an that is where I had to send the engine to.

trex 700fbl cal30,minititan,, trx600fbl,trex250,logo 500,Velocity N2

PM  EMAIL  GALLERY  Attn:RR  Quote
WATCH
 2 pages [ <<    <    ( 1 )     2     NEXT    >> ] 3045 views POST REPLY
HomeAircraftHelicopterHelicopter Main Discussion › Horizon buys up Tower Hobbies!
 Print TOPIC  Make Suggestion 

 7  Topic Subscribe

Friday, November 16 - 5:13 am - Copyright © 2000-2018 RunRyder   EMAILEnable Cookies

The RC discussion world needs to consolidate. RR is now one choice for that. Its software is cutting edge. It hosts on-topic advertising. Help RR increase traffic buy making suggestions, posting in RR's new areas (sites) and by spreading the word.

The RunRyder Difference

• Category system to allow Rep/Vendor postings.
• Classifieds with sold (hidden) category.
• Classifieds with separate view new.
• Answer PMs offsite via email reply.
• Member gallery photos with advanced scripting.
• Gallery photo viewer integrated into postings.
• Highly refined search with advanced back end.
• Hosts its own high end fast response servers.
• Hosts thousands of HD event coverage videos.
• Rewrote entire code base with latest technology.
• No off-topic (annoying) click bait advertising.
Login Here
 New Subscriptions 
 Buddies Online