The future of Revell Germany...

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The future of Revell Germany...

Joined: July 19th, 2006, 11:37 am

January 13th, 2018, 8:31 am #1

Hi everyone!

Over the last few days there has been plenty of chatter regarding the future ownership of Revell Germany. Last night we were sent a press release laying out their position - here is the release in full...

https://thekitbox.wordpress.com/2018/01 ... perations/

Spence
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Joined: December 24th, 2002, 10:24 pm

January 13th, 2018, 12:40 pm #2

Glad to hear they will still be producing their fine quality products.
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Joined: October 15th, 2007, 1:12 am

January 13th, 2018, 2:04 pm #3

Hi everyone!

Over the last few days there has been plenty of chatter regarding the future ownership of Revell Germany. Last night we were sent a press release laying out their position - here is the release in full...

https://thekitbox.wordpress.com/2018/01 ... perations/

Spence
TY, nice to see more than opinion...n/tt
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Joined: June 19th, 2010, 3:26 am

January 13th, 2018, 2:52 pm #4

Hi everyone!

Over the last few days there has been plenty of chatter regarding the future ownership of Revell Germany. Last night we were sent a press release laying out their position - here is the release in full...

https://thekitbox.wordpress.com/2018/01 ... perations/

Spence
When something new comes from Revell, it's from RoG. US Revell seems to be reduced to nothing but re-pops. And even the RoG re-pops are better.
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Joined: February 27th, 2005, 5:34 am

January 13th, 2018, 3:07 pm #5

Hi everyone!

Over the last few days there has been plenty of chatter regarding the future ownership of Revell Germany. Last night we were sent a press release laying out their position - here is the release in full...

https://thekitbox.wordpress.com/2018/01 ... perations/

Spence
Is a vehicle to ditch its obligations to its ESOP holders. Hobbico is an employee-owned company so all its employees get tax advantaged contributions of stock in the company. The catch is that when an employee leaves or is laid off (and Hobbico has laid off a lot of people over the last couple of years) they are entitled to a payout of the value of their ESOP shares 60 months after their termination date. Hobbico failed to make scheduled payouts from the ESOP at the end of 2016 and the share value plummeted by 80%. I did some digging and discovered that in 2015 the total value of shares in the ESOP was $70 million with 700 holders of shares for an average value per person of $100,000.
In the bankruptcy, claims of the ESOP holders are subordinate to all other creditors. Assuming Hobbico finds a buyer, the ESOP shares remain with the bankrupt company and the shareholders get whatever is left after all other creditors have been paid. Hobbico just received permission from the bankruptcy court to access $70 million in debtor-in-possession financincing to keep the restructuring going and find a buyer. This financing is senior to all other debt the company has and, presumably coincidentally, is about the same as the ESOP valuation in 2015. The sale of the company will also free it from the ongoing investigation by the Federal government into mismanagement of the ESOP.
So my guess is that Hobbico is sold and survives in some form, although maybe it won't remain in Champaign, IL, but spare a thought for the 700 or so current and former employees who are going to see a good chunk of their retirement savings wiped out by this move. Note that, like stocks in 401k's, ESOPs are not covered by Federal government pension guarantees.
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Joined: March 1st, 2009, 4:06 am

January 13th, 2018, 4:49 pm #6

Hi everyone!

Over the last few days there has been plenty of chatter regarding the future ownership of Revell Germany. Last night we were sent a press release laying out their position - here is the release in full...

https://thekitbox.wordpress.com/2018/01 ... perations/

Spence
"the sky is falling" (it seems to be for the employees in the ESOP) There will be something appear to fill the void if Hobbico goes away.
Remember the USS Liberty
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Joined: February 27th, 2005, 5:34 am

January 13th, 2018, 5:40 pm #7

As you might lose your job and a large fraction of your retirement savings, or a former employee who was not able to cash out your ESOP shares. Companies don't work without the people who staff them so we might be happy that Revell survives, but that is going to come at a cost. The average loss could be as much as $100,000 per employee and, from personal experience, I know most of them are making $12, $13, $14 per hour.
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Joined: February 27th, 2005, 5:34 am

January 13th, 2018, 5:40 pm #8

"the sky is falling" (it seems to be for the employees in the ESOP) There will be something appear to fill the void if Hobbico goes away.
As you might lose your job and a large fraction of your retirement savings, or a former employee who was not able to cash out your ESOP shares. Companies don't work without the people who staff them so we might be happy that Revell survives, but that is going to come at a cost. The average loss could be as much as $100,000 per employee and, from personal experience, I know most of them are making $12, $13, $14 per hour.
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Joined: February 27th, 2005, 5:34 am

January 13th, 2018, 5:41 pm #9

"the sky is falling" (it seems to be for the employees in the ESOP) There will be something appear to fill the void if Hobbico goes away.
As you might lose your job and a large fraction of your retirement savings, or a former employee who was not able to cash out your ESOP shares. Companies don't work without the people who staff them so we might be happy that Revell survives, but that is going to come at a cost. The average loss could be as much as $100,000 per employee and, from personal experience, I know most of them are making $12, $13, $14 per hour.
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Joined: March 1st, 2009, 4:06 am

January 13th, 2018, 5:47 pm #10

As you might lose your job and a large fraction of your retirement savings, or a former employee who was not able to cash out your ESOP shares. Companies don't work without the people who staff them so we might be happy that Revell survives, but that is going to come at a cost. The average loss could be as much as $100,000 per employee and, from personal experience, I know most of them are making $12, $13, $14 per hour.
I think I alluded to that......................nt
Remember the USS Liberty
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