Wednesday, April 23, 2014

Model Power Closing: No Man is an Island . . .

After almost 50 years, Model Power is closing.

While I can't say I ever bought anything made by Model Power for my layout, it is still sad to see a model railroad manufacturer close.

While we celebrate the great models being brought out by manufacturers like Athearn, Rapido, Bowser and InterMountain, to name a few, the closing is a reminder that making model trains is a tough business.

And even though I will not personally miss Model Power, the loss of any model railroad manufacturer diminishes all of us, and the hobby as a whole.

As English poet John Donne put it about 400 years ago:

"No man is an island entire of itself; every man
is a piece of the continent, a part of the main;
if a clod be washed away by the sea, Europe
is the less, as well as if a promontory were, as
well as any manner of thy friends or of thine
own were; any man's death diminishes me,
because I am involved in mankind.
And therefore never send to know for whom
the bell tolls; it tolls for thee."

The letter from Model Power is below.

Dear Model Power Customers,

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

We will be reaching out to our clients over the next few weeks to settle any demand needs that they may have.

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 too 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.

Sincerely, The Model Power Family

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