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Walthers purchases assets of Life-Like Products Toy and Hobby Division; Roco declares bankruptcy
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I realize that I am coming into this thread near it's conclusion, however, I feel compelled to add my own two cents worth here. <br />If, as stated in an earlier message, Life Like was purchased by an investment group sometime back, to me this all makes perfect sense. One of the things that aquisition groups do, is buy up multi pronged companies with an eye to selling off the lesser lights of the prong. These company divisions may be profitable in there own right, just not profitable enough for the purchaser. Buy selling off these arms of the company, the purchaser has in fact paid for his aquisition of the whole. If not in full, then certainly more than half way. If that arm of the company is profitable, the more the seller can ask as a selling price. I believe Life Like to be just such a company. <br />Enter Walthers. With the loss of the Athearn and MDC lines of product over the last couple of years, their bottom line is probably suffering somewhat. Not enough to put them out of business, but enough to make them notice. Along comes Life Like's toy division. What better way to try and recoup that loss to the bottom line than purchase a company that offers a line of product which is basically an exact match to the product line you have lost? When you think about it, Walthers is in a better position with this purchase than they would be dealing with an independant producer. All costs are controlled by them from manufacture to sale with no middle men to worry about. <br />Again, to me, makes perfect sense. Obviously Walthers thought so too! <br />What this means to the purchasing hobbiest remains to be seen. I recall when Horizon bought out Athearn. The threads of doom and gloom ran rampant. Price increases, lack of availability and on and on. I have noticed while reading the various hobby forums, that for every person willing to offer a positive viewpoint about a subject, there are just as many people taking the negative position. Classic glass half empty, half full type stuff. <br />As I own quite a number of Proto locomotives and freight car products and would buy more with no reservations, I am interested to see how this all shakes down. The days are too early yet to formulate an opinion based on Walthers actual marketing plans. It hasn't been seen yet. <br /> A good move by Walthers? Handled properly, you bet! Good for hobbiest's? We'll have to wait and see!! <br />
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