Model Power going out of business
April 24, 2014
|After more than 50 years in business, hobby product manufacturer Model Power will close its doors.|
The third-generation, family owned company stopped taking new retail customers April 21, said Chief Financial Officer Jonathan Tager. An announcement was posted on Model Power’s website April 22.
Model Power’s immediate closure came as a result of its bank’s “aggressive deleveraging process,” according to the Model Power website post.
“This was a banking issue, not a structural issue,” Tager said. “And that’s why this is so disappointing. We’ve been in a long battle with our banks. … By no stretch of the imagination is this something that anybody in my family wants to have to go through. This is a really tough time for this family right now.”
Model Power is working to fulfill any previously placed orders and settle any previously stated customer service concerns, he said.
The company is also exploring licensing options for its product lines and the possibility of selling off any of its tooling that might be readily available, Tager said. He said he expects the entire Model Power operation to end within a week or two.
“We thank everybody for all of their support over the years, and we apologize for any inconveniences,” Tager said. “It was never our intention to have this kind of event occur.”