Setting the Record *REALLY* Straight

FROM:

****Frank A. Rosenbaum Apr 13 1999, 3:00 am

Let me tell you a story. Along time ago, in a city called Beacon, there lived a store called Hobbies for Men. This was a big store, that ordered lots and lots of train stuff. At some point in the life of this store, some one ordered a lot of Magnuson kits. When the invoice came, it was either ignored, or thrown out, or there wasn't enough money to pay it. Magnuson needed the money to survive (don't we all?) and Walthers loaned them the money that was needed. Some time later, Hobbies for Men was shut down for many reasons that the sheriff posted on the door. Magnuson got in line to collect on the invoice, but didn't get enough to repay Walthers. Magnuson defaulted on the loan, so Walthers ended up with the rights to Magnuson Models.

FROM:

****BondoBill1 Apr 14 1999, 3:00 am

All wrong Frank..sorry. About a year after Bob Lunde named a building after me, HFM found out they were short on cash and could not continue. MM took a little road trip, visiting both Magnuson, and PFM. In both cases, MM bought up the entire stock of both companies and then in his full page ads, listed PFM engines and Mangnuson kits to the public at prices much, much lower directly to the public, than stores could buy it for, and some kits were offered to the public , BELOW distributor prices. Within a month of the ads appearing all orders from stores and distributors stopped...Magnuson was boycotted by the entire retail level, as was PFM. Almost a year later, Magnuson came up with the styrene kit idea.using a new molding technique and moving away from resin kits. That innovation was what the hobby needed. Sadly, MM did not have the casf flow to produce these new kits, so they approached Walthers for a loan against opening orders. I used to do that, I would need say $20,000 and I would offer Phil, hrough Bill Wischer a deal, another 10 to 15% off of DN if they sent me money. Walthers did give MM upfront money, but for some reasons not made public, and infact, without rumors, they could not meet the initial order. To bail MM out, WKW not only bought the MM line, but offered both Bob and his Wife JOBS.....very positive move...****

ALL WRONG, BILL, SORRY! (And yes, Frank, you too.)

First of all, allow me to introduce myself: my name is Kirsten - as in Kirsten's Corner Cafe - Bob & Lynn's daughter. I was wandering around the hobby area of Google's news groups and stumbled upon this. I nearly choked. Now, I realize this thread is nearly 10 years old, but NEITHER post contains enough TRUTH or FACT to fill an N Scale boxcar! I simply could not and will not let it slide. (Where *did* you guys get your information?!)

Yes, this is just a news group, but - as evidenced by folks thanking Bill for "setting the record straight" - people will take what they read as gospel, whether or not it contains an iota of truth. Alas, news groups offer the perfect venue for folks to hold forth on topics they really know very little about. ;-p

In fact, I was amused/shocked/miffed enough to call my folks. They will be posting at some point over the next several days with actual information; not hearsay, rumors and fairy tales. (They're a pretty swamped right now with Lunde Studios, but they, too, feel strongly enough about the wild tales spun here to speak up.)

Yes, that's right. You'll be getting the TRUE HISTORY from the horses' mouths. :D

Sl=E1inte ~ Kirsten (Lunde) McAdam (as in Lunde Studios' McAdam Building)

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Kirsten (Lunde) aka mcgaelicgal
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THE TRUE HISTORY OF THE SALE OF MAGNUSON MODELS.....from the horse's (Lynn Magnuson Lunde's) mouth. (Shall I whinny here? Maybe I'll just say "neigh" to what's been said on this subject. Grrroaannn....I've been living with Lunde too long.)

First, before the history, I need to say that "Walthers is out of their ...minds" was not the title of Kirsten's post, Bill. That was from someone else's earlier post. You asked in your email what bothered her. Possiby the incorrect "myths" being touted as fact and how the stories make her parents sound stupid and inept?

Now....Here comes the history lesson..... Unlike many other maufacturers, Magnuson Models stopped selling to HFM when the latter's payments slowed to 90 days. When they were fully paid up with us, we cut them off. We could see the proverbial graffiti. We did not get stuck with unpaid HFM invoices. Mike Meilhe (sp?) never came out to see us. They never bought our entire inventory. Perhaps some retail stores stopped carrying Magnuson when our products showed up in HFM ads; we heard some rumors to that effect. But we were selling to all the same distributors right up to the time we sold to Walthers BY CHOICE. Magnuson Models did not borrow money from Walthers or anyone else. We were not making a lot of money, but we were always solvent and self-sustaining. We produced several of the styrene kits out of our own cash flow and called them "The Century Series".

At the time that we sold - I repeat, BY CHOICE - to Walthers, there was only one outstanding invoice ($500) remaining unpaid (as it remains to this day), and it was owed to us by another manufacturer. Perhaps you remember who I mean, Bill.

Why did we sell to Walthers? Two events occurred in a very short time span. Bruce Walthers said to me at a trade show that he was impressed with the innovations in our lines, that he'd like to see all the warmth and activity in their booth that he could see in ours and that he was thinking he ought to make an offer for Magnuson if Bob and I would come to Milwaukee with it. We just chatted then, and no more was said on the subject. Not long after that, my dad was diagnosed with lung cancer, as well as heart and kidney disease. Bob and I wanted my parents to be repaid the remaining portion of their investment in Magnuson asap and to be free of business concerns for their remaining time together. So we decided to contact Bruce to see what he had in mind. The entire transaction went smoothly and was win- win.

Why did Bob leave Walthers? He needed more freedom to create what he wanted to create. His dream became Design Preservation Models. (Bob signed an agreement not to produce open mold polyester kits, but he was free to do injection molded styrene.) I followed a couple of years later when DPM grew to the stage of needing me.

That's the end of that story, and I'd like it to be the end of my involvement with this "string". (I'm pretty sure Kirsten feels the same way.) I have no bad feelings toward anyone here. And I have MANY happy memories of those times. Say hi to Ellen for me, Bill, and let's let this go...... Lynn

Reply to
greenkite9

That's the end of that story, and I'd like it to be the end of my involvement with this "string". (I'm pretty sure Kirsten feels the same way.) I have no bad feelings toward anyone here. And I have MANY happy memories of those times. Say hi to Ellen for me, Bill, and let's let this go...... Lynn

My apologies, Lynn. I am sorry that I had my facts wrong, and I appreciate hearing the correct story.

Reply to
Frank A. Rosenbaum

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