I have heard that Rivarossi has been bought out by another company and will not produce any new products for a couple of years. Is there any truth to this? I have noticed that there are less new big boys and challengers for sale. Maybe some new road numbers for their engines would work.
Daniel (UP fan)
Here is today’s update about Hornby purchasing Lima, which includes Rivarossi.
Bob
RNS Number:4620G Hornby PLC 16 December 2004
HORNBY COMPLETES LIMA ACQUISITION
Hornby Plc (“Hornby”), the model and collectables group, is pleased to announce that it has completed the acquisition of certain assets of Lima S.p.A in liquidation (“Lima”) for Euro8 million (Approximately #5.5 million1) fully funded from cash reserves and Bank overdraft facilities.
Lima is one of Europe’s best known model railway companies. It has a strong profile in Italy, France and Germany, with brands including Lima, Rivarossi, Jouef, Arnold and Pocher. In recent years, Lima has struggled to contain production costs associated with its European manufacturing facility. Despite strong brands and an attractive product range, the company found itself in financial difficulties and was placed into administration in 2003. Hornby has acquired certain assets of the company from the liquidators through the Court of Brescia. The majority of these assets are the trademarks together with the moulds and tooling and associated assets for a substantial number of different model railway product lines.
Hornby is planning to re-locate the manufacturing and assembly of the Lima products to China. Hornby has managed the outsourcing of its own manufacturing and assembly processes to China successfully over recent years. This process has enabled Hornby to concentrate on designing new product lines, improving distribution channels and innovate its marketing programme.
Hornby is currently cataloguing all of the Lima moulds and planning which lines it will re-launch in the second half of 2005. Hornby is retaining a presence in Italy. A number of the key marketing, sales and administrative staff employed by Lima will remain at the company’s base in Brescia in North
Like any company that has (1) gone out of business (2) new ownership
we have to wait and see.
Use or sell the assets?
Demand for old products vs new?
MOSTLY Recouping their investmrnt.
I wonder if the relocation of manufacturing will lower some final retail costs? My guess is probably not but we can always hope. TB