This is posted on the Model Power website. I heard the rumor earlier this morning from someone well connected with the model train business.
Dave Nelson
Dear Model Power Customers,
After nearly 50 years serving the hobby industry, our 3rd generation family business will closing effective immediately.
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 to 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.
While not my first choice for a modeling project, Model Power has been name in the modeling industry for so long. I have used their a number of their products as a basis for kitbashing. Hopefully their product line will be purchased by another company.
While its sad to hear of a old line company calling it quits it does not surprise me.
MP seem to be a company stuck in the 50/60s and never got up to par like other manufacturers.
I suspect their Mantua Classics tooling dated back to the 50s…I recall the Mantua locomotive kits way back then and it appears nothing has changed since then.
Sorry to hear but I have to agree that MP trains were not up to the same quality as some of the competitors. For example I was looking at some MP tank cars last week and noticed that they still had truck mounted couplers, though they were knuckle couplers.
But I will miss the little mini cars and the all metal rolling stock.
Sad to see an end of an era. I do have a Mantua Classics 2-6-6-2 which serves as my “close enough” model of engines used on the CB&Q Deadwood Branch … For many years I had the Mantua 2-8-2’s and 4-6-2’s. Still have one 4-6-2.
It’s quite remarkable for a family business to last more that three generations so it’s not surprising to hear Model Power is closing it’s doors. With each gereration there are more and more family members involved and the slices of the pie keep getting smaller.
There’s a saying that goes something like this, the first generation makes money, the second protects it, and the third spends it.
Not saying that that is what happened in this case.
They did have very good vehicles, but that’s about all of the Model Power stuff I bought.
The MP cars I have are “fodder” for kitbashing and serve that purpose quite well, but I did notice that their individual car prices, which had been $6.99 to about $10.99, were raised (at least at Hobbytowns in my area) about $4.00 more on average, with some approaching the $20.00 mark. I am not sure if this end-of-business circumstance was not already a forseeable one, hence the markups.
They did sell bulk (25 piece) flex track on Train World’s site years ago at a very reasonable price, but that’s over now.
I miss Athearn (the OLD Athearn of the BB era) far more than I will Model Power, but it is sad to see yet another name disappear.
It will be interesting to see if any of their products get picked up by some other manufacturer - there are some items around now in HO that have been sold under several brand names over the decades…for example the Mantua engines, some of which date back to the 1940’s era, that Model Power had sold in recent years.
People think businesses & buisness operators are rich…not so. Most all businesses have to borrow to upgrade equipment to keep up. Usually the only money they have is in the business & property. Most farmers have to borrow yearly to buy seed, equipment or livestock. It could be that the Bank didn’t see fit to lend money for a fading hobby, not because Model Power was not a good customer.
The last 600 feet of flex track on my layout was all Model Power. Perhaps someone will step in and but some of the toolings and other assets.
But they said it up front. INVENTORY is too expensive. That is why model builders make limited runs. Build and object and move on. It a retailr wants to stock in their warehouse, then so be it.
Sad news. MP made and imported unique, affordable items. The Mantua line was great from my perspective: the Pacific is a good puller, and its simplicity really makes things easier when it comes to maintenance and upgrades. The logging locos were also great. I hope someone will fill that void. Simon
I have been in business for 37 years and borrowed money in January to purchase new equipment.
Perhaps the reason so many companies offer pre-orders for new products. It is cheaper to get interest free money from the customer than to borrow from the bank for that next container of engines.
This is sad news. They had a lot of nice, affordable building kits and lighted accessories. They’d carved out a great little niche for themselves. [:'(]