More Hornby financial woe

[young37215]

Looks like Hornby have yet to (or more like if they will) turn the corner. I cannot recall the last Hornby product that I bought either. Lets hope Barclays are feeling generous and agree a waiver of the covenant breach? At a guess they will agree but for a not insignificant fee.

 

https://www.telegraph.co.uk/business/2018/04/03/Hornby-forced-seek-lender-reprieve-profits-sales-drop/

 

Amusingly the picture used by the Telegraph appears to show the loco off it's rails; prophetic or what? 

Edited April 3, 2018 by young37215

[MikeParkin65]

Looks like Hornby have yet to (or more like if they will) turn the corner. I cannot recall the last Hornby product that I bought either.

 

Yet I have spent more with them than I have for several years with the Q6, new Duchess (x2) , MK1's, several diesel TTS chips. Likewise my nephew (just had his 10th birthday) is buying an airfix kit a week. Its not all doom and gloom

[jonathan452]

Amusingly the picture used by the Telegraph appears to show the loco off it's rails; prophetic or what? 

 

And this was also a slightly 'strange' choice' - https://www.standard.co.uk/business/Hornby-gets-a-hand-from-barclays-as-it-bids-to-put-head-of-steam-into-sales-a3804451.html

[Ian Hargrave]

Looks like Hornby have yet to (or more like if they will) turn the corner. I cannot recall the last Hornby product that I bought either. Lets hope Barclays are feeling generous and agree a waiver of the covenant breach? At a guess they will agree but for a not insignificant fee.

 

https://www.telegraph.co.uk/business/2018/04/03/Hornby-forced-seek-lender-reprieve-profits-sales-drop/

 

Amusingly the picture used by the Telegraph appears to show the loco off it's rails; prophetic or what?

 

Hopefully not. IMHO completely unamusing.Not time yet for gloating over the corpse.

[The Johnster]

Not good news; H are apparently in such a vulnerable condition that a relatively minor delivery issue is causing significant problems.  There may not be much belt tightening left to do.  It is a shame that much of the problem stems from the failing Scalextric range; perhaps the future of the railway modelling part of the business would be more secure if this were ditched.  I'd say the railway side is heading in the right direction but has historically been too slow to adopt the better standards of the main competition and too wedded to the train set high street outlet trade.  

 

It's demise, if this is what is going to happen and I hope it isn't, will be rapid and complete; business has no mercy and Barclays are not a charity.  I would suggest acquiring any models you intend to purchase asap; this will ensure supply and maybe give the struggling company a bit of extra income!  I need another brake van and auto trailer; skates on, Johnster!

[Steamport Southport]

Extremely poorly written article IMO.

 

Hardly relevant to even mention Toys R Us as they have never stocked Hornby. Besides Hornby aren't in the "toy" sector, they are listed in the "leisure goods" sector.

 

 

As they always say in the movies "Nothing to see here, move along".

 

 

 

 

 

Jason

[Grovenor]

I did have considerable trouble locating their stand at Ally Pally last week, a really miserable effort and dominated by a large placard for the stand behind so it just appeared to be part of their stand. And when it was confirmed as the Hornby stand there was very little to see. It can't help to be invisible in the major show. The Dapol stand was bigger and better let alone the Bachmann one.

Regards

[John M Upton]

Comparing the three major manufacturers stands at Ally Pally:

 

Bachmann - Glossy, slick, stuff to look at well displayed and well lit, knowledgeable staff on hand to answer questions

Hornby - Nothing much to see, amateurish displays of some prototypes poorly presented almost church jumble sale style, staff on hand looked like they had been seconded from the typing pool.

Dapol - Long, badly laid out scrum which was difficult to get anywhere near as people pushed and shoved to get their hands on "bargains", forthcoming models etc on display more visible than Hornby but no where near as professional looking as Bachmann.

[Steamysandy]

ToysrUs did sell Hornby including Special packs of wagons.

One commentator on another Finance sight suggested they should stop swelling Lima engines and bring out some new. Ones like Bachmann!

[Bon Accord]

Extremely poorly written article IMO.

 

Hardly relevant to even mention Toys R Us as they have never stocked Hornby. Besides Hornby aren't in the "toy" sector, they are listed in the "leisure goods" sector.

 

 

As they always say in the movies "Nothing to see here, move along".

 

 

 

 

 

Jason

 

Actually, Toys R Us did stock Hornby. Their store at Newcraighall always had a glass cabinet full of Hornby models, together with a pretty decent selection of coaches, wagons and trainsets. I presume the same applied to their other stores.

[MikeParkin65]

   I would suggest acquiring any models you intend to purchase asap; this will ensure supply and maybe give the struggling company a bit of extra income!  I need another brake van and auto trailer; skates on, Johnster!

You mean I am going to HAVE to buy that totally out of region Lord Nelson for an occasional unlikely ‘special working’? Oh go on then!

[Legend]

Actually, Toys R Us did stock Hornby. Their store at Newcraighall always had a glass cabinet full of Hornby models, together with a pretty decent selection of coaches, wagons and trainsets. I presume the same applied to their other stores.

Not the one in Glasgow . Last thing I saw there was a Pendo trainset a long time ago. Don't think they stocked even the 0-4-0 sets latterly, just some Scalextric

[Big James]

It can’t help that since modelzone has gone they don’t have a major presence anymore in the major shopping centres like bluewater which I regularly used when I was as college. But maybe it’s time for the model railway part to detach itself from the rest. Children still want trainsets but no one really wants a scaletrix. But if Hornby does go as I’ve said before it’ll be a lot harder to bring new blood into the hobby as if a child wants a trainset they’ll buy a Hornby one like I have with my nephew and if was to buy him a Bachmann one he would be like what is this. And for us southern modellers it’ll be lot harder for us, as we would lose our bullied’s, v class, n15 and s15 etc.

 

Big james

[Steamport Southport]

When?

 

I've never seen any Hornby, Airfix or Scalextric in Toys R Us and I used to work in one of their largest branches (Paisley Street, Liverpool branch). That's as well as over twenty years shopping there for nieces and nephews (now the next generation).

 

 

 

Jason 

[Hroth]

Financial news editors love that wobegone Hornby Class 29 with its sad face and Deus Ex Machina hand placing it back on the rails.

 

Never mind that its a 40 year old model, last in catalogue in the early 2000s and that there's more appropriate current models to illustrate a story about Hornby.  However, it suits their rather suspect agendas and illustrates a glaring lack of understanding about what they're pontificating about.

 

Silly beggars*.

 

*Replace with scathing epithet of your choice....

[Andy Y]

staff on hand looked like they had been seconded from the typing pool.

Sexist rubbish; I know the ladies to which you refer and they are experienced marketing professionals who have attended many shows, one of whom has done much to improve media communications.

[woodenhead]

When?

 

I've never seen any Hornby, Airfix or Scalextric in Toys R Us and I used to work in one of their largest branches (Paisley Street, Liverpool branch). That's as well as over twenty years shopping there for nieces and nephews (now the next generation).

 

 

 

Jason 

Certainly in the past 20 years, when my kids were kids and not adults we used to frequent ToysRUs and they had plenty of Hornby.

[LBRJ]

Showing the re-railing of a wayward engine is a positive image - It conveys hope of recovery

 

Maybe Hornby are now fully over their degree of hubris (design clever etc) and will come good.

[woodenhead]

It's easy to see doom and gloom, pull Hornby up on a stand at a show but it's a covenant on an debt arrangement and they are referring to reduced profit not a loss warning.

[Oldddudders]

I cannot recall the last Hornby product that I bought either.

I, by contrast, have since January 2017 bought new 4 Bulleid pacifics, probably nearly 20 Maunsell coaches, an N15, a couple of H Class tanks and several cattle trucks. We clearly have very different perceptions of what is hot and what is not. And if Hornby were to turn up its toes it would be very bad news for our hobby.

[Black 5 Bear]

As said many times in relation to Hornby, the hobby would be very much the poorer without them.

Maybe if they go it alone and detach themselves from the other brands within the group,they may well prosper.

Fingers crossed !

Edited April 3, 2018 by Black 5 Bear

[APOLLO]

This reads a bit more promising - finance agreed.

 

 

Troubled toy-maker Hornby has started talks with lenders on a new deal in a bid to shore itself up in the face of slow sales.

Fresh finance is expected to be in place by June and follows the company’s announcement in late 2017 that it would raise £12 million through a new equity placing.

Barclays has agreed to waive a financial covenant on Hornby's debt in the meantime, which would have been breached after its profits were hit by delivery problems and a decision to stop discounting products.

 

http://www.thisismoney.co.uk/money/markets/article-5573295/Toy-maker-Hornby-talks-lenders-12million-new-finance.html

 

Brit15

[young37215]

Strategically Hornby as a business is a basket case, it is hard to identify anything they have done recently that has been strategically successful. Unless Barclays waives the breach of covenant, Hornby will be in default with all the resultant issues about the Directors continuing to trade that this gives rise to. 

 

To quote from the Evening Standard's article 'Davies said Hornby has made a lot of progress but warned that there is still much more to do in terms of reducing costs, streamlining processes and adding routes to market'. There is nothing tangible here to support Davies's assertions, just Management speak for job losses and, probably, further arbitrary changes to the terms under which they supply what remains of their retail network. I bare the brand Hornby no harm, I just cannot see how it survives under the current management or corporate structure which is trashing the undoubted goodwill value of the brand. 

 

The fact remains that I have spent silly money on my layout over the last few years yet less than 5% of the rolling stock is from Hornby. I have more Dapol rolling stock than Hornby! That said from peoples comments on this thread it appears that demand for Hornby model railway produce is more robust than I thought.  I hope this is the case, at least it means there is a potential future for Hornby model railways somewhere.

[tomparryharry]

I'm a bit disappointed to see people getting negative about Hornby. The stuff I've bought in the last 3 years has been pretty good models.

 

The big Lizzes were top drawer, and you can't really deny that. That, dear reader, is coming from a dyed in the wool Western person.

 

Some of the recent releases are spot -on. The H class, Peckett, and the toad van are all good, and well worth it.

 

Too much negativity for me. Come on! the sun is shining!

 

Cheers,

 

Ian.

[njee20]

When?

 

I've never seen any Hornby, Airfix or Scalextric in Toys R Us and I used to work in one of their largest branches (Paisley Street, Liverpool branch). That's as well as over twenty years shopping there for nieces and nephews (now the next generation).

What a curious comment given multiple examples! I remember the Woking branch stocking Hornby, and excitedly checking that aisle every time I went in 20ish years ago.

 

Shame about Hornby, ironically, as an N Gauge modeller, I’ve recently bought my first Hornby products in years, in the form of a couple of TTS decoders to play with.

 

It would be a shame if they vanished, if only for the heritage!