# Hobbico files for bankruptcy



## spock62 (Aug 13, 2003)

Not good news especially for Revell....

Hobbico files for bankruptcy; layoffs next? | News-Gazette.com

Hobbico bankruptcy statement reveals massive debt


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## terryr (Feb 11, 2001)

> The U.S. Department of Labor is investigating Hobbico's employee stock-ownership plan after the company deferred payments.
> 
> After deferring those payments at the end of 2016, then-CEO Wayne Hemming wrote to employees that, "It is expected that 2017 will also be a challenging year for the business."
> 
> The share value of employee stocks recently declined by more than 80 percent, with one former employee saying the value of her ESOP account dropped from just over $27,000 to less than $5,000.


I'll bet the executives still get their bonuses.


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## Rainfollower (Oct 6, 2006)

Here's the bankruptcy petition in a more readable form: https://www.csbankruptcyblog.com/wp-content/blogs.dir/375/files/sites/55/2018/01/petition-3.pdf


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## spock62 (Aug 13, 2003)

Latest post on Revell (USA) Facebook page:

"We want to thank you for your concern regarding the recent news of the Hobbico chapter 11 filing. Revell will continue to run business as usual and continue to provide the best in class model kits to our customers. We appreciate the continued support and we look forward to a bright future! Please stay tuned for the latest news on new product releases."


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## Steve H (Feb 8, 2009)

Oh. OK, I get it now. the 'big and probably unexpected' news (everyone thinking this was referring to a kit) Jamie at R2 hinted at is probably R2 buying up Revell. 

Speculation? Sure. Totally baseless speculation. But picture the temptation of having 100% of the model car market, plus the Star Trek and Star Wars licenses for kits.


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## spock62 (Aug 13, 2003)

Steve H said:


> Oh. OK, I get it now. the 'big and probably unexpected' news (everyone thinking this was referring to a kit) Jamie at R2 hinted at is probably R2 buying up Revell.
> 
> Speculation? Sure. Totally baseless speculation. But picture the temptation of having 100% of the model car market, plus the Star Trek and Star Wars licenses for kits.


Well, I'm pretty sure Jamie meant a kit. But, I was thinking along the same lines, if R2 acquired Revell, then they would "own" the market for car kits and could reissue the old MPC/AMT Star War kits. But would they have the $$$ to do so, especially since they've had their own money issues in the past year or so? 

If it did happen (a BIG if), that would mean Round 2 would own the molds to all of the major USA kit manufacturers (AMT, Aurora, Hawk, Lindberg, Monogram, MPC, Renwal and Revell)!


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## Steve H (Feb 8, 2009)

Jamie, bless his soul, has had a problem with context and syntax with his blog posts in the past. He sometimes seems to leave out a sentence or misplace a comma or other grammar boo-boos. He's in a hurry and doing 15 things at once I'm figuring. 

So yes, as his post reads it implies a large (assumed $100 and up) kit that is probably unexpected. Personally I can't think of ANY kit he could announce that would be 'probably unexpected'. But big news that is unexpected, I can easily see that. I have hopes (slim possibility but hey, it COULD happen!) that would be R2 picking up the rights to the show 'The Orville'. 

Buying up or having a controlling interest in Revell would be right up there in the big and unexpected category, for sure! 

I mean, wouldn't that also give R2 easier entry to Germany and the EU? Or would Revell Germany be a separate company in that case?

Hey, if a buyout would give me better access to all of Revell and Monogram's old Space kits from the '50s and '60s, color me on board.


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## Zombie_61 (Apr 21, 2004)

spock62 said:


> "...Revell will continue to run business as usual and continue to provide the best in class model kits to our customers..."


_Continue_??? When did they _begin_? I mean, I've built a number of Revell kits over the years and had fun doing so, but almost every one of them had some degree of accuracy and/or fit issues; not exactly what I'd call "best in class". That being said, I'd hate to see them suddenly disappear after all these years.


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## John P (Sep 1, 1999)

Zombie_61 said:


> _Continue_??? When did they _begin_? I mean, I've built a number of Revell kits over the years and had fun doing so, but almost every one of them had some degree of accuracy and/or fit issues; not exactly what I'd call "best in class".


Except when they sold reboxed Hasegawa or DML kits.


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## spock62 (Aug 13, 2003)

Zombie_61 said:


> _Continue_??? When did they _begin_? I mean, I've built a number of Revell kits over the years and had fun doing so, but almost every one of them had some degree of accuracy and/or fit issues; not exactly what I'd call "best in class". That being said, I'd hate to see them suddenly disappear after all these years.


Since most of what Revell sells are reissues of old kits, some dating back to the late '50's, it's not surprising that these kits have accuracy/fit issues. Except for the occasional new tool car kit and toy-kits for kids, they make nothing else. Revell of Germany does a much better job, and do quite a few new-tool kits per year, but you have to watch out for the Revell (USA)/Monogram reboxes!


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## TAY666 (Jan 8, 2000)

Steve H said:


> Speculation? Sure. Totally baseless speculation. But picture the temptation of having 100% of the model car market,


Well, not quite 100%
There is still Moebius.
They do make car and truck kits too.


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## djnick66 (May 2, 2008)

Actually Revell's new tool stuff (mostly cars from Revell USA but a lot of planes and armor from Revell Germany) are very very nice. Revell's brand new 1/32 P-51 Mustang is a kick ass kit at a bargain basement price compared to its Chicom and Japanese competition. You could buy five of the Revell kits to one Tamiya. 

Not to knock Moebius but I really don't think they are in the position to buy Revell/Revell Germany. They are, for all intents and puroposes, a one man outfit (Frank).


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## spock62 (Aug 13, 2003)

djnick66 said:


> Actually Revell's new tool stuff (mostly cars from Revell USA but a lot of planes and armor from Revell Germany) are very very nice. Revell's brand new 1/32 P-51 Mustang is a kick ass kit at a bargain basement price compared to its Chicom and Japanese competition. You could buy five of the Revell kits to one Tamiya.
> 
> Not to knock Moebius but I really don't think they are in the position to buy Revell/Revell Germany. They are, for all intents and puroposes, a one man outfit (Frank).


Agree on both points. If Revell/ROG were to be put up for sale, I think R2 would be the only USA company to even consider a purchasing one or both.


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## djnick66 (May 2, 2008)

In theory there are a lot of entities that "could" buy Revell. After all, they have been a part of Hallmark, Binny and Smith, and Ceji in past years.


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## John P (Sep 1, 1999)

I don't think R2 has the capitol to buy a big company, do they? They can barely afford to put out Trek models that are a foot long.


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## Warspite (Aug 3, 2013)

This is a copy and paste from the Revell-Germany forums site;

Revell GmbH have issued a statement in respect of the Hobbico situation:

Quote:

Revell-Germany Reaffirms Continuity and Solidity of Overall Business Operations

Group Parent Company Hobbico, Inc. Files Petition for Chapter 11 Relief in United States and Pursues Sale;
Revell-Germany Confirms No Impact to Vendors, Suppliers and Customers Throughout Process.

BUNDE, Germany - January 11, 2018
Revell-Germany announced that its parent company, Hobbico, Inc. ("Hobbico") filed a petition for relief under Chapter 11 of the United States Bankruptcy Code while it seeks an orderly finalization and implementation of its comprehensive restructuring plan. In conjunction, Hobbico also announced its plan to sell the company.
Because Hobbico's bankruptcy filing was made in the United States and is strictly limited to the company's U.S. operations, Revell-Germany is unaffected. Additionally, Revell-Germany suppliers, vendors and customers will not be impacted by the process.

"Our Revell-Germany operation is not filing for bankruptcy protection" said Louis Brownstone, President of Hobbico, Inc.

"It will continue to provide the same high-level of service to our customers. We are optimistic that the filing will better position the U.S. operations for future growth."

"Most important for all of us at Revell-Germany, we continue to operate 'business as usual' moving forward," said Stefan Krings, President of Revell-Germany.

"Looking ahead, our top priorities remain continuing to build our business with our high-valued vendors and suppliers, while simultaneously providing the same high-level of product support to our customers."

Although Revell-Germany is not part of the filing in the United States and will continue to operate its business, the sale of Hobbico could have future implications for Revell-Germany. The decision by Hobbico to file for bankruptcy and pursue a sale of the company allows Hobbico the opportunity to reduce their debts, restructure their liabilities, attract new capital investment and position the overall company for future growth.

From January 31 to February 04, 2018, Revell will be present at the Nuremberg Toy Fair presenting its new products for 2018.

"We are convinced that we can continue the growth path of 2017 with our attractive range of novelties and welcome our international customers in Nuremberg," says Krings.


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## Steve H (Feb 8, 2009)

John P said:


> I don't think R2 has the capitol to buy a big company, do they? They can barely afford to put out Trek models that are a foot long.


I dunno. Somehow, in cases like this, money can always be found. It might bite them in the a** later down the line but for the NOW I'm fairly sure they could find a way to do the buyout. 

Interesting Revell Germany hasn't expressed an opinion on buying up Revell USA to solidify the brand and have better access to the American market. I'm guessing they feel plastic kit building in the USA is a sinking ship. :frown2:


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## Shado1980 (Jul 15, 2009)

Warspite said:


> This is a copy and paste from the Revell-Germany forums site;
> 
> Revell GmbH have issued a statement in respect of the Hobbico situation:
> 
> ...


Revell of Germany has always seemed to be a more efficiently run and maintained company than the American counterpart. Glad they are not affected by this.


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## SamuelMartin20 (Nov 18, 2017)

It's always sad to see another industry vendor go out of business. In my hometown several small shops have had trouble staying open. They are having trouble competing with the larger internet vendors. They just can't match the prices and have trouble getting a loyal customer base who isn't just focused on price.


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## Mark McGovern (Apr 25, 1999)

You know, bankruptcy doesn't always mean a company will disappear. Hobbico will have to restructure itself and _perhaps _sell off Revell; we need to wait and see what happens. Maybe Round 2 could buy Revell, but I would worry about an anti-trust lawsuit, given the size of the US market that would be filled by a single entity. On the other hand, if Revell wanted to sell its molds off - Aurora monsters to R2, Star Wars to Pegasus, etc. - that might work.

Looks like 2018 (really, like every year) is going to be interesting!


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## StarCruiser (Sep 28, 1999)

Yup - they MIGHT find an "angel" investor (i.e. a hobby lover with deep pockets) that saves them from oblivion.


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## Richard Baker (Aug 8, 2006)

Mark McGovern said:


> You know, bankruptcy doesn't always mean a company will disappear. Hobbico will have to restructure itself and _perhaps _sell off Revell; we need to wait and see what happens. Maybe Round 2 could buy Revell, but I would worry about an anti-trust lawsuit, given the size of the US market that would be filled by a single entity. On the other hand, if Revell wanted to sell its molds off - Aurora monsters to R2, Star Wars to Pegasus, etc. - that might work.
> 
> Looks like 2018 (really, like every year) is going to be interesting!


It is not just the molds- any acquired molds must have a licensing agreement in place before they can be used which could be quite expensive for some subjects.
I do hope this company or some form of it survives- the more producing the more options we have. I do think whoever decided to make their kid friendly snap kits the only models produced (without reboxing kits others made) should be fired. Entry level kits have their place, but not to the exclusion of all else- you need to provide a path to more advanced modeling as well.


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## djnick66 (May 2, 2008)

Shado1980 said:


> Revell of Germany has always seemed to be a more efficiently run and maintained company than the American counterpart. Glad they are not affected by this.


Yes they are - Revell Germany was bought by Hobbico last year or so. The third paragraph up from the bottom of your article mentions the bankruptcy can have implications for Revell Germany.


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## Steve H (Feb 8, 2009)

djnick66 said:


> Yes they are - Revell Germany was bought by Hobbico last year or so. The third paragraph up from the bottom of your article mentions the bankruptcy can have implications for Revell Germany.


Arrgh I somehow missed that as well. So much for my thought that the 'better half' of Revell could ride in and save the day. 

Is Revell Japan still in existence, or did that vanish when Takara (who seemed to be their 'local partner') got all messed up and effectively dumped out of the plastic kit biz some time in the late '80s?


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## StarCruiser (Sep 28, 1999)

I believe they have been gone for some years now. Haven't seen or heard anything about them...


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## djnick66 (May 2, 2008)

At one time (60s and early 70s) Revell had molding outfits in Japan, England and the USA. Revell Japan seemed to do kits aimed at the Japanese home market (the 1/72 and 1/32 Japanese airplane kits). I don't know of any other kits that they did. Revell in the UK was involved with some of the poorer kits too like the 1/72 and 1/32 P-51 Mustangs and 1/32 Mosquito. Revell also had distributorships in Brazil and Mexico. I think Revell Germany originally fell into that category too. They may have been the last Revell branch? I am not sure. I remember Revell Germany from only the late 70s or mid 80s onwards. And they did not make any new kits at that time. The other Revell branches and parterships seem to have faded away. The last time I saw the Mexican and Brazilian stuff was in the late 80s. 

I believe Takara is still around but, like Bandai to a great extent (except for Gundam and Star Wars) is focused mostly on just toys and not model kits. People know Bandai today for the Star Wars and GUndam stuff but in the 60s through the 80s they had a large range of military models and cars that are extinct today.


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## spock62 (Aug 13, 2003)

Was checking out a review of the Revell AG 1/32 P-51D-NA Mustang on cybermodeler.com and noticed this bit of info in the review: 

_"Revell AG (Revell/Germany) released this kit late last year as a completely new-tooled model of this famous fighter. On the cover of the instructions, Revell/Germany rightly identify themselves as a subsidiary of Hobbico, but that was then. Early this year, Hobbico filed for bankruptcy protection and in April, the company was broken up and sold at auction. *Revell/Germany, Revell USA, and Revell Global were all purchased by a German-based international investment group. The company we knew as Revell USA is now closed and its assets are part of Revell/Germany. Since there are no further distinctions required, Revell/Germany is now simply Revell.* Because of the bankruptcy issues earlier this year, many of the kits from Revell/Germany didn't make it over the US, and in the case of this P-51, a few made it over, but nowhere near the demand for this kit. Once Revell is ramped back up as a unified model company, we'll no-doubt see more of this release reappear on store shelves."_

Link: https://www.cybermodeler.com/hobby/kits/rm/kit_rg_3944.shtml

If this is correct, then it seems to indicate that Revell's operations here in the USA are closed. I have noticed that their website and Facebook page has not been updated since last month. If that's the case, I feel really bad for the USA employees who have lost their jobs.

UPDATE: Just saw this posted on Starship Modeler forum, which confirms the above: http://www.starshipmodeler.net/talk/viewtopic.php?f=7&t=124075


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## scooke123 (Apr 11, 2008)

A shame they will be moved from the USA but at least both companies are owned by one group. We can only hope they are hobby related individuals with the modelling community's best interests at a priority. I assume since the company will only be called Revell from now on the "Monogram" name is now dead. I hope they keep it in some packaging as I hate to see that brand name disappear!


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## spock62 (Aug 13, 2003)

More info:











Revell Has Been Sold: Here's What We Know | Scale Auto Magazine


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## spock62 (Aug 13, 2003)

Original post on Revell Facebook page when Hobbico bankruptcy was first announced:
https://www.facebook.com/RevellUSA/post ... 3529632906

_"We want to thank you for your concern regarding the recent news of the Hobbico chapter 11 filing. Revell will continue to run business as usual and continue to provide the best in class model kits to our customers. We appreciate the continued support and* we look forward to a bright future*! Please stay tuned for the latest news on new product releases."
_
So much for the "bright future" for the USA operations. :frown2:


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## Richard Baker (Aug 8, 2006)

The person writing that probably had no idea they would get fired until 4/13 happened


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## spock62 (Aug 13, 2003)

Richard Baker said:


> The person writing that probably had no idea they would get fired until 4/13 happened


Most likely true, the employees are usually the last to know!


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## Shado1980 (Jul 15, 2009)

I hate to see Revell cease its US operations, but glad that Revell AG is continuing. They have most of Revell's back log of tooling already so I'm hoping to see an expansion of rereleases of older models like the steamship Great Eastern, or the 1/225 Cutty Sark. I'm a fan of ship modeling too and Revell has some great kits that haven't seen the light of day in a while.


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## Rusty_S85 (Apr 7, 2018)

spock62 said:


> Was checking out a review of the Revell AG 1/32 P-51D-NA Mustang on cybermodeler.com and noticed this bit of info in the review:
> 
> _"Revell AG (Revell/Germany) released this kit late last year as a completely new-tooled model of this famous fighter. On the cover of the instructions, Revell/Germany rightly identify themselves as a subsidiary of Hobbico, but that was then. Early this year, Hobbico filed for bankruptcy protection and in April, the company was broken up and sold at auction. *Revell/Germany, Revell USA, and Revell Global were all purchased by a German-based international investment group. The company we knew as Revell USA is now closed and its assets are part of Revell/Germany. Since there are no further distinctions required, Revell/Germany is now simply Revell.* Because of the bankruptcy issues earlier this year, many of the kits from Revell/Germany didn't make it over the US, and in the case of this P-51, a few made it over, but nowhere near the demand for this kit. Once Revell is ramped back up as a unified model company, we'll no-doubt see more of this release reappear on store shelves."_
> 
> ...


Yea they haven't been making kits for a while now. I been noticing a lot of Revel kits on my wish list over on Hobby Linc have went out of stock and switched to "Discontinued" status. I hope they make a come back cause I missed out on some model cars I wanted to get. Either they need to come back or Tamiya needs to start making kits of antique and vintage cars from the teens up to the 80`s.


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## Mark McGovern (Apr 25, 1999)

Rusty_S85 said:


> ...I hope they make a come back cause I missed out on some model cars I wanted to get. Either they need to come back or Tamiya needs to start making kits of antique and vintage cars from the teens up to the 80`s.


Rusty,

You have just given us yet another reason to attend IPMS model shows: the vendors rooms. They're always packed with dealers who sell old kits, frequently at rock-bottom prices compared to some Internet retailers or eBay. If my LHS doesn't carry a kit I want, I can usually find it at a show. And then there's the contest and the opportunity to talk about the hobby with people who don't yawn after you've uttered your first sentence...


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## spock62 (Aug 13, 2003)

Mark McGovern said:


> Rusty,
> 
> You have just given us yet another reason to attend IPMS model shows: the vendors rooms. They're always packed with dealers who sell old kits, frequently at rock-bottom prices compared to some Internet retailers or eBay. If my LHS doesn't carry a kit I want, I can usually find it at a show. And then there's the contest and the opportunity to talk about the hobby with people who don't yawn after you've uttered your first sentence...


And if there are never any IPMS shows in your area? For all the guys that really dig Revell car reissues, you'd better hope that the German company that owns Revell feels the same way.


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## Mark McGovern (Apr 25, 1999)

spock62 said:


> And if there are never any IPMS shows in your area?


Mr. Spock,

The IPMS is spread out all over the world and certainly the USA. All you have to do is look at the Event Calendar on the IPMS/USA web site to find the nearest show. Oh, and there are a lot of non-IPMS clubs that have shows of their own; an Internet search can help you find one of those.


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## Rusty_S85 (Apr 7, 2018)

Mark McGovern said:


> Rusty,
> 
> You have just given us yet another reason to attend IPMS model shows: the vendors rooms. They're always packed with dealers who sell old kits, frequently at rock-bottom prices compared to some Internet retailers or eBay. If my LHS doesn't carry a kit I want, I can usually find it at a show. And then there's the contest and the opportunity to talk about the hobby with people who don't yawn after you've uttered your first sentence...


Yep that's the thing I hate is I am more interested in the old cars. These scale models allows me to build what I would love to build in real life but don't have the money to do it. Then there are kits like the '56 Victoria, the Ford Ranger Pickup that I have which are going to be kit bashed to build my personal vehicles. For my Truck to convert the 80-81 F150 Ranger into a '82 F150 I will need to pick up the old late 70`s Bronco kit for the mirrors and pick up a 92 F350 for the 2wd I beam front suspension so I can get rid of the 4wd suspension on this kit. Both of those kits as far as I know are a bit older and I am really wondering if I should order them now even though Ive already exceeded my monthly limit I put on buying hobby related purchases or hope for the best and wait and hope like hell they don't discontinue them.

Then there is like the old 1/350 scale Enterprise NX-01 that I have. Wanted to light it up but got ahead of myself and cant really go back to do it right so now I am trying to find a reasonably priced replacement kit so I can use my kit as spare parts for.

As far as the model shows goes, here in Tx I think the model shows are out in Austin or Dallas. Both of which are too far from me at the moment. After I move Austin would be about 100 miles away so a little over an hour drive. I have no problem going if that close.


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## Mark McGovern (Apr 25, 1999)

Rusty_S85 said:


> ...After I move Austin would be about 100 miles away so a little over an hour drive. I have no problem going if that close.


Rusty,

If you've never been to a model show before, I guarantee you're in for a treat. And unless Texas is devoid of vendors - which I doubt - you'll have added all the models you listed in no time! Best of luck with your move.


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## spock62 (Aug 13, 2003)

Mark McGovern said:


> Mr. Spock,
> 
> The IPMS is spread out all over the world and certainly the USA. All you have to do is look at the Event Calendar on the IPMS/USA web site to find the nearest show. Oh, and there are a lot of non-IPMS clubs that have shows of their own; an Internet search can help you find one of those.


Thanks for the info. Unfortunately, the only IPMS shows for 2018 in FL are all over 3 hrs away from where I live. Not worth the 6+ hr round trip in my opinion. Also, there are no clubs by me. Which goes back to the point I was trying to make, that not everyone has access to these shows.


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## Rusty_S85 (Apr 7, 2018)

Mark McGovern said:


> Rusty,
> 
> If you've never been to a model show before, I guarantee you're in for a treat. And unless Texas is devoid of vendors - which I doubt - you'll have added all the models you listed in no time! Best of luck with your move.


Closest to a model show Ive been was a automotive swap meet about 20 years ago there was a guy there with a table with diecast cars and model cars.

But Id love to go to a dedicated model show just to get out there and see more of what is out there vs trying to browse Scalemates.


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## djmadden99 (Dec 23, 2008)

"As far as the model shows goes, here in Tx I think the model shows are out in Austin or Dallas. Both of which are too far from me at the moment. After I move Austin would be about 100 miles away so a little over an hour drive. I have no problem going if that close."

In Texas we measure a trip by time, not distance!


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## Milton Fox Racing (May 27, 2014)

djmadden99 said:


> ...In Texas we measure a trip by time, not distance!


Even when we fly!

El Paso is closer to California than it is to Dallas.


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## djnick66 (May 2, 2008)

Where in FL are you? There are shows, mini shows, swap meets, etc. all over. At least in the central part of the state. There was a big IPMS swap meet two weekends ago in Clearwater, a big show over in Deland or so last month, and an upcoming show in Lakeland in June or July. There are regular shows in Pompano Beach, Orlando, Venice, Jacksonville, Pensacola. I'm sure there are others. Sometimes its worth the effort to go. I scored a stack of rare and vintage and out of production kits at the swap meet for literally peanuts. The best deal was an Aurora flying sub for $1 (yes $1) that was missing the figures and display stand. I can live with that for $1. That swap meet was about a 3 hour round trip drive for me, but I didn't have anything better to do.


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