Got a message from a reliable source that stated that Rivarossi had either already declared bankrupck or was about to. Italian law is a bit different than the US in these types of situations so bankrupcy may mean something a bit different than liquidaltion and close the doors.
Rivarossi was already being controlled by the bank, so it may be that they just couldn't reorrganize and pull it off.
To much obsolete stuff. New items were good (Allegheny, Heisler) but did not compete on a dollar for dollar basis well with Bachmann, Life-Like, Broadway Ltd.
Met some nice people when I helped them with the Alleghany, also met some not so nice management types.
Where does this leave Walthers vis-a-vis their sales of the Rivarossi products. WKW seems to have a lot of money invested in selling products produced by Rivarossi. I can't believe they will let all of that investment simply go "down the tubes."
Anybody want to bet against WKW emerging as the "owner" of the models it was selling?
R. Boone, the Elder Bon Vivant, Raconteur and Occasional Microferroequinologist
Make that 55+ years. I guess you've never compared a 30 year old Rivarossi model with a more recent product. (I have a circa 1948 Rivarossi B&O 0-4-0 switcher in my collection) Many of the older dies went to Mehanotehnika in Yugoslavia and still sell in the USa. Most Rivarossi models were retooled after their fire in 1984(?)
Lima has produced vast quantities of rolling stock for a number of different US brands for 40+ years.
It was being controlled by the Italian Bank for two reasons:
- the previous US importer went bankrupt owing them US$5 million.
- Rivarossi was landed with control of the larger firm Lima after that went bankrupt several years ago.
Not sure its relevant but Model Power is part of a company called Lima, noted for old technology and low prices, that has I think now gone bust. There was a thread on this on uk.rec.models.rail where someone got hold of the Italian newspaper article and someone else translated it as . . .
THE FILE E' ARRIVE Á. THE LAST STOP
The three partners to Brescia have named a college of liquidators
The Lima is in liquidation. Yesterday morning to Brescia in the offices of Ann Rumma the are gathered representatives of the three partners of the Lima, the historian mark of electric trains, to decide the last stop. E' names a college of liquidators formed by two brescianis and a Milanese. Is drawn of Walter Seddio, Alberto Falini and Pierluigi Tita. From the productive establishment of Island icentina (about eighty workers - artists that reproduce collection miniatures and from the administrative offices of Brescia (about twenty employees) there is perplexity and fear. But the labour unions prefer not still to act: "we Camp the official declarations of Monday." It is stayed, then, with the suspended breath. As to December when the last crisis had prospected the closing of the gates of the firm of street Capiterlina. Yesterday morning to Brecia the managing director Luca Ramella has introduced his resignations. Then you/he/she is preceded to the break-up of the board of directors and the nomination of the liquidators. "The losses are superior to the capital to disposition (but less and less of the winds miglioni of European writings yesterday)" they explain the liquidators that luned's will have to formally accept the charge. It seems indeed quersta the last stop for the trains of the Lima.
From "The Newspaper In Vicenza" of July 12 th 2003
Still a bit mangled but better than Italian
Josh
Not sure if Rivarossi is part of the same outfit but there has been a lot of mergers and take overs in the european model rail industry.
A previous message contained a translation of an article in an Italian newspaper that stated that a group of liquidators has been appointed. Although the translation was a bit unclear, it appears that the assets do not begin to cover the debt.
I don't doubt that soem part of Rivarossi will survive in one form or another but when the liquidators arrive irt usually means that the corporate entity, if it continues to exist may be a mere shadow of itself.
The big question is, Why should Rivarossi Survive? The product line was old, with a few exceptions, (Allegheny, log cars, Heisler) but the prices were not competative here in the American market place.
Well perhaps they felt slumping sales as a result of better models from other companies. There is only so many hobby dollars to go around. Just like Mantua perhaps it is just a sign of the times. You need produce more detailed models at a reasonable price (P2K). The days of having a limited choice seem to be over.
CBix
-------------------------------------------------------------------- The middle East as a whole needs a better customer service department. After all we purchase a hell of a lot of oil from them and it would be in their best interest to start taking better care of their customers.
I meant to convey the impression that Walthers would effectively control the use of the dies and tooling and therefore the entire manufacturing and sales process for those models. I couldn't begin to guess who would actually have legal title to that stuff but there are many ways to "own" something and I have no doubt that Walthers' lawyers will earn their fees in that regard. Regardless of who has the legal title, Walthers will be calling the shots.
The point was that Walthers now has a lot of its own money invested in the sale of Rivarossi equipment and I doubt that they will let that money go to waste if there is any way to prevent it.
=>The point was that Walthers now has a lot of its own money invested in the sale =>of Rivarossi equipment and I doubt that they will let that money go to waste if =>there is any way to prevent it.
Walthers has also caused Rivarossi to --- finally! --- put RP25 wheels on its locos.
But it may be too little, too late. IMO Rivarossi's downfall was long overdue, if perhaps not entirely its own fault. The only thing that kept them alive back in the dark ages was the fact they produced the only modestly priced Big Boys, Challengers, cab-forwards, etc. But a lot of people wouldn't buy even those locos because of the flanges. I didn't -- even when under the, er, sponsorship of Model Expo prices fell to well under $200. But Model Expo, like previous importers, didn't apparently tell Rivarossi the obvious -- Change Those D**n Wheels! And improve the motors while you're at it!
It's sad but true that Proto 2000, and Genesis have overtaken Rivarossi in quality. Marklin has learned the obvious lesson, and produced a superb Big Boy with RP25 wheels. Rivarossi will need to retool practically its entire line to equal, let alone exceed, current offerings by its competition.
MrRathburne wrote: : Fortunately those days are over. Mantua, now Rivarossi. Roundhouse : is probably next. Then Stewart. : : Charles snipped-for-privacy@yahoo.com (Charles Bix) wrote in message news:... :> :> Well perhaps they felt slumping sales as a result of better models :> from other companies. There is only so many hobby dollars to go :> around. Just like Mantua perhaps it is just a sign of the times. You :> need produce more detailed models at a reasonable price (P2K). The :> days of having a limited choice seem to be over. :> :> CBix :> -------------------------------------------------------------------- :> The middle East as a whole needs a better customer service department. :> After all we purchase a hell of a lot of oil from them and it would be :> in their best interest to start taking better care of their customers. :> --------------------------------------------------------------------
Overpriced compared to the more recent and better competition, Yes. State of the art? ... NO, but much improved. "30 year old models", No. Sure, most of the SHELLS were something like 30 years old ... but some are still good, even by today's standards. The mechanisms were recently updated substantially. There was little wrong with many of them appearance wise, except for the (usually) undersized drivers, shared by MANY (most) other mfg.'s models as well (including brass). Their recent production had very little in common with the "30 year old models".
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