Hobbico files for bankruptcy
After month of rumour on social media and certain news sites over the health of Hobbico, the company announced on the 10th of January that they are filing for restructuring under Chapter 11 of the Bankruptcy Code and that they are pursuing a process to sell or restructure the company. Hobbico will continue to operate the business throughout the bankruptcy process. Numerous companies across a range of industries (automotive, airlines, etc.) use this type of filing as a tool to get costs under control, create stability and build platforms for growth. Hobbico intends to use the bankruptcy filing and a possible sale of the business to reduce their debt, restructure their liabilities, attract new investors and position the company for future growth. Hobbico carefully evaluated this vs. a number of other actions and concluded this was the best path forward.