Horizon deal with Intermountain

From the Intermountain Railway home page:

December 1, 2004

For Immediate Release

Longmont, CO: InterMountain Railway Company, recognized throughout the model railroad industry for its highly detailed scale locomotive and rolling stock models, announced today the appointment of Horizon Hobby, Inc. of Champaign, IL as its exclusive distributor effective immediately. Previously InterMountain distributed its products direct to the retailer and will continue that practice for those retailers that wish to maintain a direct relationship with the company.

Frank Angstead, CEO of InterMountain says, "This is a tremendous opportunity for InterMountain to partner with one of the industry's finest in service, marketing, sales and distribution. This announcement will immediately expose our products to more than 2,100 Horizon dealers and make our products more accessible to consumers."

Since its inception 16 years ago, InterMountain has become a leader in fine scale models in both HO and N-scale. Carl Crosier, Director ? Model Railroad Division at Horizon states, "These are truly exciting times at Horizon, to be associated with such fine people that take exceptional pride in their products. The detail level in their products is second to none and we look forward to this opportunity."

For more information contact Frank Angstead at:

InterMountain Railway Company

PO Box 839

Longmont, CO 80502

(303) 772-1901

Reply to
Peter King
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Doesn't sound like a good deal for me as most of the people I deal with don't deal with Horizon! This seems to suggest I can't buy IM anymore.

Reply to
Jon Miller

Your dealer should be able to continue geting products direct from Intermountain.

The news release stated: "Previously InterMountain distributed its products direct to the retailer and will continue that practice for those retailers that wish to maintain a direct relationship with the company."

Reply to
Ken Rice

That's not good for me... Walthers *is* my local hobby shop here in Milwaukee!

Reply to
Mark Mathu

Go mail order! Horizon in their _extreme effort_ to support local hobby shops actually creates just the opposite effect.

Reply to
Jon Miller

What is strange is how quiet the net is about the Horizon takeovers.

I guess everybody is happy with the Monopoly Horizon is building. Do it the Horizon way or take the highway. Remember less choice is more!

Bill Dixon

Reply to
B Dixon

Athearn survived for years on small volume orders by a large number of hobby shops, some that were general shops carrying modelling supplies for everything from model cars to rockets, others just carried mosel train supplies. Horizon has managed to alienate, I would expect, through their high volume order requirements, a large number of small shops. This forces modellers to venture elsewhere for these goods, namely the large chain hobby shops that know nothing about the model rail road hobby. Their other large outlets will be toy stores that can survive the big box pressure from Walmart and K-mart/Sears that will only carry a very narrow porduct line. If the owners of Athearn and MDC came out of the deal with a good chunk of financial security for themselves and their families I applaud them. As for Horizon I see these acquisitions as neither a good fit or a good economic decision. Forcing one's market presence to the blue states doesn't seem to make good sense.

Bob

Reply to
Robert Dietz

I heard somebody the other day describing WalMart as having a generally Soviet GUM feel to it.

Then there was the cartoon in the editorial section today - a WalMart B-52 bombing small town America with boxes marked "Made in China". But they'll never replace our greeters with Chinese . . . will they?

Reply to
Steve Caple

This is not a takeover. Intermountain has not been purchased by Horizon. Approved dealers may still order direct from Intemountain if they wish to. The newsletter I received from Intermountain says this was done to give them a better market presence. Horizon told me about this a week or so ago and said only that they were going to carry the line.

C Fails

Reply to
Charles Fails

..well if they're successful they'll have a nice chunk of the distribution/sales for Intermountain - that ight just in due time give takeover power :)

Newsman

Reply to
Newsman

Gene wrote: Wasn't Walmart claiming a few years ago that it went out of its way to sell only "Made in the USA" products?

---------------------------------------------------- Shhh, Gene! Now that they have wiped out all the small stores, they can do as they please, I suppose.

Bill Bill's Railroad Empire N Scale Model Railroad:

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Reply to
Bill

Wasn't Walmart claiming a few years ago that it went out of its way to sell only "Made in the USA" products?

Could be. Nowadays you'd be hard pressed to find any American made products in Walmart. Or many other store for that matter. Check the fine print at your grocer for example.

Reply to
Corelane

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