Athearn sold

[MRTerry]

We just received word that Horizon hobby has purchased Athearn. We'll continue to post the latest information we have on our site - here's a link to the story:

Athearn sold

Thanks for reading Model Railroader,
Terry

[AggroJones]

I hope this doesn't effect modellers in a negative way.

[CP5415]

WOW!!
I hope Horizon Hobby continue's to let Athearn be Athearn. Unless they improve the company somehow. Not sure how they would do that.
I haven't had a complaint with them yet, & hope I I never will.

Just My 2 Cents

Gordon

[Anonymous]

Good news for Athearn, after a few years in the slump, now they'll have a bit of corporate parent influx to produce more and sell cheaper.

Mergers of thsi sort usually involve soem streamlining, no more outside accounting fees, less management cost, ect. so look forward to better Athearn products soon.

[Anonymous]

That stinks. I'm 12 and can only afford Athearn locos so I hope they don't screw up the prices and engines. I better stock up on their engines

[Hawks05]

i hope they cut the price on kits and RTR stuff. Athearn is probably half my rolling stock collection. i need the prices to stay down. i only have one Athearn locomotive but i hope to purchase a few more of them.

[ShaunCN]

Damm I was just getting to like them and aford them now.......... who nows what the future will bring.

ShaunCN

[brothaslide]

The only thing you can count on in life is change - Sounds like something your dad tells you.

[Anonymous]

I knew this day will come eventually. I have enjoyed Athearn kits and locos for several decades and have only two wishes.

Keep the kits and engines affordable for those who may not have much disposable income. And the second is to try and have a complete line across all eras for everyone.

[dehusman]

What is Horizon Hobby? Are they a store, a distributor or a manufacturer? Do they have any production experience or any existing models to judge there approach and fidelity?

Dave H.

[trainfan1221]

Its hard to believe Athearn is no longer an independent company--I used a lot of their stuff when I was in HO. They are a long established company, but nowadays something like this is to be expected. Should be interesting.

[Anonymous]

QUOTE: Originally posted by dougal

That stinks. I'm 12 and can only afford Athearn locos so I hope they don't screw up the prices and engines. I better stock up on their engines

I hope someone of influence within the industry takes this one very seriously. If you want the youth to get into the hobby then you will have to provide inexpensive yet very reliable products to the new and entry level crowd. As I'm getting more into the hobby and purchasing high end equipment there will always be room for Athearn on my layout.[^]

[Anonymous]

QUOTE: Originally posted by dehusman

What is Horizon Hobby? Are they a store, a distributor or a manufacturer? Do they have any production experience or any existing models to judge there approach and fidelity?

Dave H.

From the article, it sounds like they are all three: one of the countries largest hobby providers and owner of a line of RC cars!

[PistolPete]

Most of my equipment is Athearn, including the last 10 I purchased. I would hate to lose the quality, cost and range of equipment they offered. Lets hope it will be a change good for railroaders.

[CBQ_Guy]

QUOTE: Originally posted by Fergus

QUOTE: Originally posted by dougal

That stinks. I'm 12 and can only afford Athearn locos so I hope they don't screw up the prices and engines. I better stock up on their engines

I hope someone of influence within the industry takes this one very seriously. If you want the youth to get into the hobby then you will have to provide inexpensive yet very reliable products to the new and entry level crowd. As I'm getting more into the hobby and purchasing high end equipment there will always be room for Athearn on my layout.[^]

YUP!

[Anonymous]

i hope prices stay down i still need a another 5 pack of nickle plate 34 foot 2 bay hoppers.

[Javern]

I bet the first thing they do is move it to MEXICO

[MAbruce]

QUOTE: Originally posted by Javern

I bet the first thing they do is move it to MEXICO

Actually, according to the latest Trains.com article, everything will stay where it is (CA), and the current president will stay. It's status quo,.. for the time being.

I figure they will eventually cut costs and move their offices to Billerica Mass, renting office space from Guilford Rail Systems. Then maybe N-scale will finally get a Guilford loco! [:D][;)]

[orsonroy]

Where have you guys been? Athearn stuff is mostly (if not completely) made in China these days...

[Anonymous]

Like you all, I have a really bad feeling about this new Athearn deal. I think it would probably be a good idea to stock up on Athearn products now while you still can.

• I understand the terms of the sale includes Horizon becoming EXCLUSIVE distributor of Athearn products. Before, some dealers could check several distributors in order to fill orders. I guess that ends now for Athearn products.


• I also heard that Horizon will NOT guaranty they can fill the orders they get. So, if your dealer cannot fill their orders from stock purchased from Horizon, and there are no other distributors (see previous bullet), it's possible some modelers won't be able to get their items.


• Horizon's dealer discounts for some Athearn product lines (i.e. Genesis) may not be as good as what some people might have gotten before. That, plus increased shipping charges dealers have to pay, could mean higher prices for us consumers.

Things like this make me very nervous about our ability to continue purchasing Athearn products. Just when Athearn was really making progress with new models in their lines. It will be interesting to see what details come out in the coming months.

[NHRRJET]

Personally, I have very mixed feelings about this sale of Athearn. If Horizon is the only distributor, a lot of sales will be lost, and distributors who have been loyal to Athearn for years will be totally cut out! This will obviously trickle down to us. . .the consumer. I guess only time will tell what happens. I have spoken with several hobbyshop owners in my area (Connecticut), and they are not too pleased about this![:(!]

[Anonymous]

I'll use every cent I get buying a few SD40-2s before Horizon makes you pay $75 each (which is posible).

[decoy706]

Horizon while a wholesaler should NOT cut out the dealer network but who can tell what is really going to happen. I would rather have seen Walthers end up with it as I feel they would be more dealer friendly. Already I see the adds stating this item will ONLY be available from Horizon Hobbies and that scares me alot ! I just hope we don't end up with another Tyco type el-cheapo on the market just when things were getting better with the Athearn line. I have collected Athearn trains since the mid 50's-every item/number- but when sold the first time I told myself it's not the same and only bought what I wanted not everything they made. Now I find myself haveing to make a bigger choice of weather I want to keep getting what I want or just return to only the early items as they are being dumped at cheap prices. I don't want to be forced to buy from just one company....my 2 cents worth
Richard

[Anonymous]

QUOTE: Originally posted by decoy706
I just hope we don't end up with another Tyco type el-cheapo on the market just when things were getting better with the Athearn line.

This is exactly what's going to happen. This is Lionel and Mantua-Tyco all over again. As far as model trains go this is the Doomsday scenereo. It can happen one of two ways.

First one. Quality stays constant. But due to the limitations I have heard they were imposing the only place you will be able to purchase Athearn from is Longs out of LA. Trainworld/Trainland out of New York City, Express Station Hobbies, and Caboose Hobbies. All with the prices going to sky high collector driven limits.

Or Two. You can find athearn everywehre. Even your local Walmart and can get an SD70M $25.00. But The horn hook couplers will cause derailments. the unpainted handrails will look like crap. and you will be on the phone with North West Shortline in 30 minuts anyway to order a new motor for the one that just became flaming scrap under te shell.

Cripes. This is the end of the world AND WE ARE ALL GOING TO DIE!!!!!!!!!!!!

[jsanchez]

I think part of what made Athearn great for train dealers is that you could buy them from most distributors, this change will hurt many of the distributors since Athearn is a good seller, I think Athearn sales will probably shrink by 30 to 40%, because of many dealers not meeting Horizon's strict requirements or having to go through the trouble of adding this distributor, you can count on many places not bothering to deal with Athearn anymore. You'd think with such a strong distribution chain Horizon would want to keep this in tact and maybe produce certain items as exclusive not the wholeproduct line. I think Irv Athearn would have felt the same way. The last thing he would have wanted was his trains to be exclusive, in fact he wanted Athearn to be inclusive so that many folks would be attracted to the hobby and could afford model railroading.

[Anonymous]

Irv Athearn was a hobbyist who was in business; the new team (Mr. Geddes, et al) strike me as businessman who work in the hobby. Whether this new development is an HO-scale version of corporate raiding, a hostile takeover, or and cut-and-run selling out, remains to be seen. However, I am not reassured by this news.
Most of Horizon's other products lines are generally characterized by foreign sweatshop manufacturing, high product markup, disposable quality and extremely short product lifespan (sometimes called "junk"). These characteristics are directly opposite of Athearn's products. Since Athearn has sold its marketing and distribution soul to Horizon, Horizon's hand will be around Athearn's throat (or some other part of their anatomy). Therefore, I place little faith in Horizon's promises not to meddle in Athearn's affairs. Human nature being what it is, I would not want to be in Mr. Geddes' shoes when he comes into inevitable conflict with Horizon's management.
To find a pertinent example, just read up on what happened to a railroad hobby shop chain, the one that used to be in St. Louis Union Station (Great American Train Store? my old brain can't remember the name exactly). As best as I recall, the urge for ever greater profitability got them saddled with an high-pressure executive from the retail apparel industry who knew nothing about the model railroad hobby business. He institued a number of stupid, sweeping changes, fired those who resisted, and ran the chain into bankruptcy. I'm sure he alked away with a wad of money, as most big wheels seem to do.
Athearn has traditionally been the reasonably-priced, solid-quality entry into the hobby for people without a wad of cash: kids, retirees, kitbashers, and folks with fixed or modest incomes. The trends at Athearn now seem to focus on the high end of the market (RTR, Genesis), aimed at the urban coastal population with lots of disposable income.
Once kids are priced out of the hobby, we will have cut off the supply of new blood to this hobby. Athearn will eventually wither, and they will wind up killing the goose that laid the golden eggs. That will hurt the hobby.
I also worry about what this will do to small hobby shops. All the distributors require the shops to buy a minimum amount of product, and now they will have to add yet another distributor to their difficult existence. To those who think that this is competition that will lower costs and help the hobbyists, think again. Walthers just announced that they are cutting their dealer discounts; i.e., hobby shops will pay more for their products.
That means that your local railroad hobby store owner will have to make some difficult choices. If he raises his prices, we can either shell out more bucks, or give our business to the cut-rate, garage-based internet dealers or mail order houses, who don't have to maintain an expensive, but convenient storefront. If we are selfish and do all our shopping based on price, the hooby shop goes broke.
Alternatively, the hobby shop owner can try to hold the line on prices and look for ways to cut costs in other areas: good luck! Most of the neighborhood railroad hobby stores operate on a razor-thin net profit margin to begin with. More cuts will probably take out muscle or brain, as few if any of them have any fat to shed, and that means a death spiral into insolvency.
His last option, if he can read the writing on the wall, is to sell out and cut his losses. This is also known as "getting while the getting is good."
None of these options are good for the model railroad hobby or for the individual hobbyiist. Where are you going to go for assistance when your mail-order Genesis engine goes haywire? Mail it in? Listen to annoying voice-prompt answering machines (perhaps being answered in Bombay or Taipei)? Where are you going to get a set of couplers on a Saturday when one of them breaks in the middle of building a kit?
Your local railroad hobby shop owner has to make a profit to stay in business. That means he buys at wholesale prices, and we pay retail prices. If we don't support our local hobby shop by paying him a retail price, he can't afford to stay in business, and then he won't be there when we need him. Also, think of the future: your local railroad hobby shop is where most people get started in the hobby.
I really do hope I am wrong about this buyout, but in my years of studying businesses, this is a pattern that I see repeated over and over again, in every industry. Maybe Horizon and Athearn will take note and not kill the goose that lays the golden eggs, but I'm getting my Athearn stuff while I still can.

[Anonymous]

Maybe it won't be so hard to put in the screws that hold the trucks. I have always gone to my dad to tighten the screws. I am also 12. I am hoping they will come out with more B&O stuff.

[Anonymous]

It is no wonder that dealers are not happy about the sale of Athearn to Horizon. Some folks may not be happy about being forced to do business with Horizon. It may be that some dealers will drop Athearn in favor of other lesser known, but equally good, model railroading products. A lot of what the consumer sees on a hobby dealers shelves depend on the dealers focus, which could change in light of the new situation.

An important consideration is that Chinese companies are eager to bring their own brand name products to the US market. Athearn's move away from entry level locomotives may produce an opening for the Chinese to bring good quality products to the $30-$40 locomotive market. In my humble opinion, it is about time for a little healthy competition. It would seem that a lot of US companies have been sitting on their hands for the last few decades.

Horizon and Athearn may have opened a Pandora's box.

[bluepuma]

Will keep an open mind until I find out what effect it has on future N scale locos, etc.

I like my F59PHI's and bought 2 - Looked with envy after the HO models were released since they didn't do N scale then.

Am hoping for nice F7A/B sets in SP Black Widow paint with dual headlights at least some models Kato, Atlas or LL doesn't make. Also hoping for real SP style cabooses.

[jimmac230]

OH NO!!!!!!!!!! SEEING THIS MAKE YOU WONDER WHAT IS GOING TO HAPPEN NEXT. WILL PRICES GO UP OR COME DOWN? WILL PRODUCT QUALITY REMAIN THE SAME OR BECOME SLAP SHOD OR POOR OR WILL IT EXCEED ANY AND ALL EXPECTATIONS? ONLY TIME WILL TELL.........