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Hattons Model Railways to close


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59 minutes ago, Andy Hayter said:

 

 

OT but not true.

 

I can buy from the South easternmost point in Cyprus to the Northernmost point in Sweden to the westernmost point in Portugal to the southernmost point in Malta and there are no issues for the buyer

 

Sorry, not my fault, as I wasn't conned by the demon busman with the cr4p haircut.

 

We're all stuck with the resultant fallout and will be until our former colleagues decide we've been punished enough or a younger generation reverses the process.

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"If this country is to break the death spiral its in, we need to export more, not less, otherwise Hattons wont be the last one to wrap up, and we’ll be left drown"

 

We need to manufacture more and then export it. What Hattons presumably doing was largely was re-exporting stuff made elsewhere (mainly the Far East). 

 

Interesting piece on the BBC News which shows that some industries are moving back to UK production but I don't think model railways will be at the forefront of that.

 

https://www.bbc.com/news/business-68500499

 

On the other hand;

 

https://www.bbc.com/news/business-68534537

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11 hours ago, Graham_Muz said:

 

Oh yes introduce those costs in to a business rather than an overseas customer paying the true costs and see what happens... oh wait...

I never mentioned about not paying true cost.  Hatton's gave a choice of reasonable shipping options from cheap and cheerfull to registered fully tracked.  

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Posted (edited)
2 hours ago, Steamport Southport said:

Can't people take all their petty business and bar room politics talk elsewhere please and leave this thread to be about Hattons?

 

 

 

 

Jason

 

Fair enough.

 

The elephant that's been tramping around the room since all this started.

 

If there was a prime cause behind Hatton's demise, one word: Hornby.

 

Despite Hatton's saving them from bankruptcy at least once, they were put into Tier 3 and supplied with so little new stock that nobody could reliably pre-order anything from them any more.

 

That will have done their turnover more damage than Brexit and Covid combined. 

 

John

Edited by Dunsignalling
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4 hours ago, chiefpenguin said:

If that really is the case then you are buying from the wrong UK sources.

 

i thought it was pretty obvious I was no longer buying HO from UK sources.

if there's a retailer in the UK that can match European prices i’m all ears.

 

Hattons used to have some good deals on second hand HO, that said ebay UK can bring up some real s/h bargains as I dont think Europeans are buying it from the UK now and demand is much lower for HO domestically, so there is some upside to the current situation.

That said I have a super rare roco/xenia CSD E666 to sell and I doubt anyone in the UK will appreciate its value, and suspect Europeans maybe wary to buy from here on ebay.

 

I was hoping on Hattons marketplace to be a platform for me but that never got fully off the ground.

 

 

4 hours ago, Hal Nail said:

I haven't quite worked out why they aren't adding VAT to UK customers? 

 

all of my recent HO stuff has been locos/ units and it gets sent tax free, but the courier does the tax and admin fee on or around delivery.

seems quite straight forwards… some hold until its paid, others send a request for payment after delivery.

 

I should add this is no different to buying from the US or China in terms of mail processing / handling.

 

I appreciate the UK seems much less bureaucratic than some countries that receive mail from the Uk, I have heard varying stories, but thats more of a reflection of the recipient country, than us.

 

Several countries are shifting the onus of tax onto the retailer sending it (effectively customs preclearance), which should really make it a smoother transaction for the customer, this is something I understood Hattons had done in some countries.

 

i’m due an LS Models SBB Panoramic coach tomorrow, arriving from Germany, nice to compare against my new mk2b’s… the SBB panoramic coaches are currently on hire to pkp/obb for the Przemysl (Ukraine border) to Vienna services as 1st class coaches, will see how that goes.

 

 

 

 

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11 hours ago, Phil Parker said:

 

Which is odd, because that's not the reason Richard gave in his interview to Radio Liverpool linked early in this thread. But I assume you know better. 

 

Truth is that none of us know the full story, and it's unlikely that we ever will. Speculation, with a side order of blaming whoever the speculator doesn't like, is pointless. It won't throw up any answers, and none that would be useful to the people here. If anyone does have more information, it will be the trade. I expect Rails have a much clearer picture for a start. 

 

Judging just from the number of people I know locally who habitually pre-ordered major Hornby items through Hatton's until the introduction of the Tier system, having that revenue cut off worldwide for three years must represent one hell of a chunk of lost turnover, however one looks at it. 

 

The loss of Bachmann sales won't have helped either, but the circumstances were different, and I suspect the lost volume would have been rather less anyway.

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Posted (edited)
53 minutes ago, Dunsignalling said:

 

Judging just from the number of people I know locally who habitually pre-ordered major Hornby items through Hatton's until the introduction of the Tier system, having that revenue cut off worldwide for three years must represent one hell of a chunk of lost turnover, however one looks at it. 

 

The loss of Bachmann sales won't have helped either, but the circumstances were different, and I suspect the lost volume would have been rather less anyway.


 

i can only speak for myself, but…

 

Hattons had two tricks that drew not only my orders, but my anscillary orders too…

 

1. Mass discounting on pre orders

2. bulk discounting “Bargains” pages

 

1. Before retail price maintenance discounts limits was widely enforced by most manufacturers on all new releases from c2017-2019, there was an inevitable race to the bottom on new releases… 25-35% from the get go… bad for the wider high st retail, but great for online consumers like Hattons.


2. if a manufacturers warehouse got in a stock pickle, Hattons would bulk buy and stack em high, sell em cheap… I recall Bachmann compounds at £79, Hornby B1’s at £69 and K1’s at £54, Heljan 47’s at £49, 4 packs of mk1 sleepers were cheap for extended periods…. This also tapered away by c2019.

 

When these happened, I wouldnt just add these to my basket, but take oppourtunity to fill the box with whatever was on my list.. paint, track, buildings, couplings, other rolling stock, locos whatever… these were typically lower value but not discounted, and assume Hattons could pick up a margin here.

 

But also, as I was buying 1 & 2 above, it would make-sense to add in other manufacturers ranges too…

 

The rot for me set in, when pre order prices became non guaranteed, at which point there was no need to pre-order. When Bachmann and Hornby ended, it also saw me shift those ancillary orders of other retailers too.

 

I also saw a couple of domestic only retailers start to add in their own loyalty programs (points), layaways (wait until the 6 weeks passed), or quite simply offer an under the counter discount, or honour an older price.. at which point my interest to Hattons became more of s/h or class 66’s and my orders simply drained away to which ever retailer was offering which ever incentive at the time.

 

If there was one thing Hattons could have done to stop the drain, I think it would have been either a loyalty program, or a “make an offer” feature on some items.

I do think they could have continued in their own ranges, especially ancillary products.

 

I have found only a few shops do this, and despite what I spend, ive never felt much loyalty back, so i have drifted my custom with the tide, the obvious two shout outs are Kernow and Accurascale, Hornby also to some extent who offer such loyalty. 

 

My concern is the draw to manufacturer websites for preorders, whilst theres nothing wrong with it, it becomes single product centric.. I cant buy those paints and track with that new loco if they dont sell it, and those who do, i’m ordering for something that may not turn up until next year.. where as with Hattons I could trunk it on arrival and build up a box of contents… I still think theres an opportunity here, for retailers who offer more than just locos.


Whilst ive heard a few in the trade moan about the concept of trunk… remember whats in the trunk was sold and paid for… so youve sold an item that was already in stock occupying space on your shelf at your own cost, the difference now is youve got cash in the bank and just waiting for it to leave… Hattons werent adverse to flushing the trunks and sending everything occasionally too…

 

Whilst i am a domestic buyer, I travel a lot, and it can be painful when something lands, whilst away for work… Just the other week Rails dropped the E2001, and DPD shipped without notice, they tried delivering once, then left it at a garden centre 5 miles away with 5 days to collect.. the five I was in Europe. Of course I contacted Rails and got tumbleweed … I had to ask a neighbour to collect, who, is now away themselves.. so here I am a month later ive still not got the box… my SRM still havent reached my arms to because of a similar mistimed journey… then last night I finally got my SLW25’s, sent 3 weeks ago.. only to find the order was wrong.. consumers have needs too, if you make it hard to do business with, they will stop doing business with you.

 

 

Edited by adb968008
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On 14/03/2024 at 06:24, Jol Wilkinson said:

 

We need to manufacture more and then export it. What Hattons presumably doing was largely was re-exporting stuff made elsewhere (mainly the Far East). 

 

 

From running a business, it doesn't matter where the goods are made, what matters is the price the item is sold for (income), against the cost of running the business, including sending it to the customer (expenses).

 

As long as the former is more than the latter, the location of manufacturer, has no consequence to a retailer.

 

There are reasons why it is better for a NATION if more goods are made locally, but retailers, no.

Maybe you don't know, but Australia no longer makes cars (except very limited specialist builds), which IMO is a far bigger loss.

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On 14/03/2024 at 10:50, adb968008 said:

 

The rot for me set in, when pre order prices became non guaranteed, at which point there was no need to pre-order. When Bachmann and Hornby ended, it also saw me shift those ancillary orders of other retailers too.

 

 

Every single retailer I have bough from since re-entering the hobby well over a decade ago HAS NOT 'guaranteed' pre-order prices!

 

What they have said is that if the price goes up (i.e. the manufacturer has raised the price they charge the retailer before delivery) then the retailer will allow me to cancel with no penalty.

 

If Hattons had such an absolute pre-order price guarantee then thats plain stupid business practice - its only a sensible practice where the manufacturer is also able to guarantees to never to raise their prices they charge the retailer or the retailer is able to lock in the manufacturers price at time of ordering. 

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Posted (edited)
58 minutes ago, phil-b259 said:

 

Every single retailer I have bough from since re-entering the hobby well over a decade ago HAS NOT 'guaranteed' pre-order prices!

 

What they have said is that if the price goes up (i.e. the manufacturer has raised the price they charge the retailer before delivery) then the retailer will allow me to cancel with no penalty.

 

If Hattons had such an absolute pre-order price guarantee then thats plain stupid business practice - its only a sensible practice where the manufacturer is also able to guarantees to never to raise their prices they charge the retailer or the retailer is able to lock in the manufacturers price at time of ordering. 

As always its in the detail.

 

There has been several cases where if you order before x date, you get the pre order price.

 

Dapol recently did this last year for instance, though not all retailers honoured it to the consumer some certainly have.

many of the new website direct to consumer retailers are doing this.

Even Accurascales 92’s had a price deadline after which they went up.

 

I’m not sure what your modelling, if youve missed it… i’m sat with some SLW 25’s that beat a £25 price rise too.

 

it was much more common for retailers to honour a pre-order price before 2018… used to be several such bargains to be had… It tailed off when model price inflation and delivery times became fluid.
 

Certainly some preorder pricing years ago used to survive annual january price inflation… I have never seen Hornby.com raise a preorder price ever, no matter how old it was.. and some was a good few years waiting !

 

I should add, in Germany my two retailers have honoured preorder prices.

i’m looking at Revolutions 175 and 180’s which have pre order pricing currently.

 

ive certainly had retailers calling me to ask if I wanted preorders as a deadline for honouring it by the manufacturer was approaching and did I want to lock in.


I wouldnt rush to call anyone stupid… unless your familiar with what the agreement with they had with the manufacturers at that time…certainly all the retailers I deal with are quite savvy and helpful when it comes to advanced warning of price change deadlines and associated options…  agreed today its more common for retailers to up the price (i do still have 1 exception whos pretty good at honouring the original price)… which goes back to my point i made originally.. theres little incentive now to preorder.

 

 

Edited by adb968008
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Posted (edited)
2 hours ago, adb968008 said:

As always its in the detail.

 

There has been several cases where if you order before x date, you get the pre order price.

 

 

Indeed there has - a couple of Kernow products spring to mind but these required immediate payment typically at the time the models left the factory - waiting till the model arrived on the shelves / ready for dispatch at pre-order prices wasn't an option.

 

But such policies are quite different from the general honouring a pre-order price from 5 years or so ago (which with the gestation period of some models from Bachmann and Hornby was a real posability) right up till when the models reach the retailers shelf - and they are only possible because the hit the retailer takes on the profit margin is considered acceptable.

 

2 hours ago, adb968008 said:

 

I’m not sure what your modelling, if youve missed it… i’m sat with some SLW 25’s that beat a price rise too.

 

 

 

I've pretty much exclusively bought steam models - including from the likes of Hattons, Rails & Kernow with none of them explicitly guaranteeing to honour pre-order prices with no strings attached.

 

2 hours ago, adb968008 said:

 

I wouldn't rush to call anyone stupid… unless your familiar with what the agreement with they had with the manufacturers at that time.

 

 

Sales of model railway items tend to be on a small scale volume wise so as a business strategy its still a stupid policy in general terms to guarantee to honor pre-order prices come what may. In reality such policies only makes sense if the business is 99% certain the price they have to pay the manufacturer etc won't go up (or go beyond a certain level) as that eats into the profit margin and can easily lead to the retailer making a loss on the sale. Do that too many times and it can cause serious financial problems for small traders (if you are someone like Tesco or Aldi then making losses on individual products doesn't matter too much because the loses get dwarfed by the profits).

 

 

 

 

Edited by phil-b259
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1 hour ago, adb968008 said:

As always its in the detail.

 

There has been several cases where if you order before x date, you get the pre order price.

 

Dapol recently did this last year for instance, though not all retailers honoured it to the consumer some certainly have.

many of the new website direct to consumer retailers are doing this.

Even Accurascales 92’s had a price deadline after which they went up.

 

I’m not sure what your modelling, if youve missed it… i’m sat with some SLW 25’s that beat a £25 price rise too.

 

it was much more common for retailers to honour a pre-order price before 2018… used to be several such bargains to be had… It tailed off when model price inflation and delivery times became fluid.
 

Certainly some preorder pricing years ago used to survive annual january price inflation… I have never seen Hornby.com raise a preorder price ever, no matter how old it was.. and some was a good few years waiting !

 

I should add, in Germany my two retailers have honoured preorder prices.

i’m looking at Revolutions 175 and 180’s which have pre order pricing currently.

 

ive certainly had retailers calling me to ask if I wanted preorders as a deadline for honouring it by the manufacturer was approaching and did I want to lock in.


I wouldnt rush to call anyone stupid… unless your familiar with what the agreement with they had with the manufacturers at that time…certainly all the retailers I deal with are quite savvy and helpful when it comes to advanced warning of price change deadlines and associated options…  agreed today its more common for retailers to up the price (i do still have 1 exception whos pretty good at honouring the original price)… which goes back to my point i made originally.. theres little incentive now to preorder.

 

 


If we order on the day of announcement with any main supplier / manufacturer, we don’t get the item at the price. We pay the price of the item at time of delivery. 
None of the  main manufacturers lock us in at the preorder price.

There’s absolutely no incentive for retailers to preorder. As we have found out to our cost, preorders don’t even guarantee us receiving the product. 
l have never been advised of any ‘advanced warning of price change deadlines and associated options’. 

Not that long ago an item was invoiced, l had ordered it in 2014. Price was double what we preordered at. 
l would add that in the case of many manufacturers,even if we could afford to even do so. Selling  at more than the x% below RRP for a stated time period is not looked on favourably. 

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Posted (edited)
24 minutes ago, Widnes Model Centre said:


If we order on the day of announcement with any main supplier / manufacturer, we don’t get the item at the price. We pay the price of the item at time of delivery. 
None of the  main manufacturers lock us in at the preorder price.

There’s absolutely no incentive for retailers to preorder. As we have found out to our cost, preorders don’t even guarantee us receiving the product. 
l have never been advised of any ‘advanced warning of price change deadlines and associated options’. 

Not that long ago an item was invoiced, l had ordered it in 2014. Price was double what we preordered at. 
l would add that in the case of many manufacturers,even if we could afford to even do so. Selling  at more than the x% below RRP for a stated time period is not looked on favourably. 

Do you think its going to get any better going forwards ?

 

Whats the trend your seeing ?


Back in December, I took a look at my own preorders. I had noticed that the combination of long lead times and vast announcements my preorders had grown to a considerable level. After stepping back, I canceled more than 2/3rds of it and have adopted a wait and see approach to most of it.. as in reality I still dont know what, when and how much and the headline figure was uncomfortable, especially if it all showed up in bulk… whilst it sounds harsh, its better to do it now, than lumber the retailer with it when it arrives… I see several posts on here where consumers have asked to delay, defer or wait when stuff lands.

Will i risk missing out, tbh I think thats a risk I can safely take for most of it, sadly if I wait an extra 6 weeks its often lucrative.

 

Edited by adb968008
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1 hour ago, adb968008 said:

Do you think its going to get any better going forwards ?

 

Whats the trend your seeing ?


Back in December, I took a look at my own preorders. I had noticed that the combination of long lead times and vast announcements my preorders had grown to a considerable level. After stepping back, I canceled more than 2/3rds of it and have adopted a wait and see approach to most of it.. as in reality I still dont know what, when and how much and the headline figure was uncomfortable, especially if it all showed up in bulk… whilst it sounds harsh, its better to do it now, than lumber the retailer with it when it arrives… I see several posts on here where consumers have asked to delay, defer or wait when stuff lands.

Will i risk missing out, tbh I think thats a risk I can safely take for most of it, sadly if I wait an extra 6 weeks its often lucrative.

 


Preorders seem to becoming a ‘let’s wait and see’. To the point of ordering, providing…..delivery time, price, reviews etc. The Customer really is King. 

Hornby announcing the end of the Tier System is working well and customers have more confidence in their products arriving at the likes of our shop. What no one can guarantee is price or delivery time,  hence the wait and see. 


There really is no fortune to be made in model railways and retailers have had to tread carefully with the price increases. 
Customers had taken up in the recent past, ordering from several retailers . Then buying from the retailer who received the stock first. Retailers were turning away customers as they had sold out on preorder, only to be then left with stock cancelled at the point of arrival. 


It’s difficult times, as more than proven with Hattons closing. Believe me, they had no choice. 
Any retailers who rubbed their hands at their closing could be the next to go.

 

We are struggling to convince customers that we are not closing down. Local media headlines of “Widnes Model shop closes” a few months back. A lot of people didn’t realise that Hattons was based in Widnes and presumed it was us. 

Edited by Widnes Model Centre
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5 hours ago, phil-b259 said:

 

Every single retailer I have bough from since re-entering the hobby well over a decade ago HAS NOT 'guaranteed' pre-order prices!

 

What they have said is that if the price goes up (i.e. the manufacturer has raised the price they charge the retailer before delivery) then the retailer will allow me to cancel with no penalty.

 

If Hattons had such an absolute pre-order price guarantee then thats plain stupid business practice - its only a sensible practice where the manufacturer is also able to guarantees to never to raise their prices they charge the retailer or the retailer is able to lock in the manufacturers price at time of ordering. 

 

4 hours ago, phil-b259 said:

But such policies are quite different from the general honouring a pre-order price from 5 years or so ago (which with the gestation period of some models from Bachmann and Hornby was a real posability) right up till when the models reach the retailers shelf - and they are only possible because the hit the retailer takes on the profit margin is considered acceptable.

 

The situation up to about 2012 was indeed that, Hattons and other big retailers did offer a per-order price guarantee. The system fell apart for exactly the reason you surmise - in particular I recall the first run of Bachmann Thompson coaches and at least one of the Class 40s where the time between announcement and delivery coupled with hefty price rises at Bachmann's end meant that some people who had ordered years earlier obtained these items at less than trade price on release when those buying once they were released paid a lot more..

Edited by andyman7
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17 hours ago, adb968008 said:

Do you think its going to get any better going forwards ?

 

Whats the trend your seeing ?

 

 

That's probably not a fair question, if the price from Chinese factories is all over the place on dispatch, how can any retailer, answer the question accurately.

 

China doesn't even give a reason, or if they do it's based on lies. Look for various exports from Australia, that the Chinese banned or levied enormous tax charges, without any notice whatsoever.

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Posted (edited)
15 hours ago, andyman7 said:

The situation up to about 2012 was indeed that, Hattons and other big retailers did offer a per-order price guarantee. The system fell apart for exactly the reason you surmise

Fair comment.  That has been my experience also.   Back in June 2013 I pre-ordered a Bachmann Mk2f RFO in blue/grey from Hattons because there was a full size example on my local heritage railway.  Can't remember the exact price to the nearest penny but the headline figure was £28 plus pence.    By October 2018, the real RFO had left our heritage railway and out of the blue I started receiving daily notifications from Hattons that my debit card had expired and I needed to pay £46.90 if I still wanted my pre-order which had now arrived.   After a few days of such reminders I decided that, with inflation, this was now in 2018 a favourable price and I went ahead with the purchase.  Due to the long lead time and the effects of inflation, I have never pre-ordered any Bachmann since then.   I take my chance, sometimes I miss out, sometimes I get a bargain much later.

Edited by cessna152towser
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From the Rails website:

 

   



Can I return my previous Hattons purchases to Rails?

No. Rails have purchased the Hattons brand, not the business. Returns should be sent to the original manufacturer.

 

Will I be able to contact Hattons directly?

No, Hattons is now closed.

 

 

So, who is "the manufacturer"?

 

 

 

 

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On 13/03/2024 at 21:59, Dunsignalling said:

 

Fair enough.

 

The elephant that's been tramping around the room since all this started.

 

If there was a prime cause behind Hatton's demise, one word: Hornby.

 

Despite Hatton's saving them from bankruptcy at least once, they were put into Tier 3 and supplied with so little new stock that nobody could reliably pre-order anything from them any more.

 

That will have done their turnover more damage than Brexit and Covid combined. 

 

John

I'm not sure there's any actual evidence that Hattons saved Hornby from bankruptcy. If there was, we would have seen it reported and Hornby would have had to disclose it.

 

We know that Hattons disposed of the Hornby Dublo stock when Lines Brothers acquired Meccano and there are strong indications that Hattons may have acquired large stocks of slow-selling lines from various manufacturers at advantageous prices. But neither of these equates to saving Hornby from bankruptcy.

 

Hattons' decision to shut up shop in an orderly fashion was taken after Hornby's unpopular Tier system was abolished.  We don't know if Hattons felt it had permanently lost a base of customers because of this or that most had returned.

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24 minutes ago, Colin_McLeod said:

From the Rails website:

So, who is "the manufacturer"?

I assume they're talking about third-party brands like Hornby and Dapol here. If you've purchased a Hattons-branded product from Hattons then I think you've hit a brick wall.  Current mould owners Accurascale or Rails may be able to sell you a spare part.

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Posted (edited)
3 hours ago, 1andrew1 said:

I'm not sure there's any actual evidence that Hattons saved Hornby from bankruptcy. If there was, we would have seen it reported and Hornby would have had to disclose it.

 

We know that Hattons disposed of the Hornby Dublo stock when Lines Brothers acquired Meccano and there are strong indications that Hattons may have acquired large stocks of slow-selling lines from various manufacturers at advantageous prices. But neither of these equates to saving Hornby from bankruptcy.

 

Hattons' decision to shut up shop in an orderly fashion was taken after Hornby's unpopular Tier system was abolished.  We don't know if Hattons felt it had permanently lost a base of customers because of this or that most had returned.

 

After the "Olympic Tat" debacle, I heard it from more than one trade contact that Hatton's reduced Hornby's unsold inventory mountain to the tune of £8m to restore cashflow where there was none, but had politely declined an invitation to take over the business. 

 

Hornby's announcement on the end of tiering was made public almost simultaneously with Hatton's one of their closure. Almost certainly too late to engender a change of plans.

 

Hatton's had certainly lost all their Hornby pre-orders when Tiering began, because nobody in their right mind would take the gamble on being in line for one of the token box of six that Hatton's would get on release. The days of "more than 10" were well-and-truly gone until something failed to sell.

 

To help compensate, I began placing all other pre-orders with Hatton's (except Bachmann obviously). I also started raiding their pre-owned pages regularly. Five (Hornby) Bulleid Pacifics for not much more than the price of two new ones, in the past two years.  😊😊😊😊😊

 

Sorry, I know thousands of you think Hornby can do no wrong, despite (commercially) seldom getting much right over the past two decades. The repeats of the soap opera have just become a terminal bore and I've ceased to give a toss what happens to them.

 

I once averaged a minimum spend of two grand a year on Hornby products. I've currently one coach and one loco pre-order still outstanding, that I'll be honouring. After that, I'll be avoiding anything in red boxes that's not indispensable to my plans.    

 

If the latest management re-earn Hornby's right to be the biggest name in the hobby, I will reconsider, but I'm not holding my breath. As things stand, we've lost the less dispensable "H", IMHO. 

 

Grumpy old git mode "off".

 

John

Edited by Dunsignalling
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