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Reply to "New MTH Company Question"

@RixTrack posted:

It took Sears 16 years to close down since bankruptcy in 2005.  MTH may spend a few years shipping product that may or may not have a support network in the future.  

This can be said of any of the modern electronic trains.  Plus, they seem to be producing a lot of new product with existing tooling, not liquidating old stock.

And, fwiw, Sears went into bankruptcy around 2018.  The merger with Kmart was in 2005. By 2010 or so, it’s debts exceeded its market capitalization and the firm was no longer profitable.  It had fallen into a financial spiral that left it unable to modernize its stores and establish a viable web retailer - Walmart is a good example of the opposite situation.

MTH was not liquidated because it was largely insolvent and was drowning in debt.  The owner wanted to retire and no one wanted to buy the firm whole, so they split it up.  Will it work long term?  The jury is still out but the pandemic seems to have reinvigorated the hobby generally and the local dealers with whom I do business state business has been brisk/. So fingers crossed.  

Last edited by Ray Lombardo

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