MTH Closing

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Bruette

Well-Known Member
I received this in an email from MTH. I do not know if it has been already posted, so here it is.

"Dear Loyal M.T.H. Customers,
June 10, 2020 - First, on behalf of M.T.H. Electric Trains, I want to thank you for the support and encouragement you have shown my company over our 40-year journey. From humble beginnings and a lot of hard work, we were able to build one of the world's largest model train manufacturers - one unquestionably buoyed by your unwavering support.

In particular, I am proud that M.T.H. has released more models than any train manufacturer in the history of our hobby. The variety, quality, and infusion of technology throughout our offerings allowed M.T.H. Electric Trains to help bring enjoyment to all who share our wonderful hobby.

It is, therefore, with mixed emotions that I tell you I have decided to retire in 2021 and close the business. The last two M.T.H. catalogs, our 2020 Volume 2 O Gauge catalog, and our upcoming 2020 HO catalog and all non-delivered items from our 2020 Volume 1 O Gauge catalog, 2020 Ready-to-Run Train Set catalog, 2019-2020 S Gauge catalog, and 2019-2020 G Gauge catalog will feature the last products produced by M.T.H. Electric Trains.

The new items featured in all these catalogs will be available beginning Summer 2020 through April 2021 and will carry our limited one-year warranty supported by our Authorized Service Center network and the M.T.H. Service Department. Upon our closing in May 2021, our ASC network will provide warranty coverage through April 2022. A list of M.T.H. Authorized Service Centers is available on the M.T.H. website and will be updated as M.T.H. Authorized Retailers join the program over the coming months.

M.T.H. Electric Trains would not have enjoyed success without the support of the M.T.H. Authorized Retailer network. While traditional retail has changed significantly over the past decade, the independent hobby shop has been and continues to be the most important cog in our distribution chain. I truly appreciate the support and friendship these shops have shown M.T.H. I wish all of them good luck and prosperity in the years to come.

Finally, I want to thank all of my employees for their hard work over the years. Most of them have been with me for decades and their loyalty and talents were paramount to our success.

With thousands of tools and molds and a wealth of intellectual property, a new model railroading company may arise from my former company as I entertain various options and buyers. One scenario is a new company organized and owned by members of my current staff. Their decades of experience, work ethic, and creative talent will ensure success regardless of who owns the assets while providing a welcome bridge between the past 40 years and the future.

The remainder of my time will be busy as we clear out inventory and other miscellaneous items accumulated over the past 40 years. As that process evolves, we’ll be offering consumer and retailer purchase opportunities

Again, from the bottom of my heart, thank you for your loyal support for all these ye
ars."



Mike Wolf, President
M.T.H. Electric Trains

I doubt this is the end of the story.
 

Railrunner130

Well-Known Member
While they never seemed to put out much in HO- at least not that I was interested in, I hope the business can continue and blossom. It seems to me that they haven't been doing much (that interests me anyway) for quite some time.
 

GeeTee

Well-Known Member
Wouldn't be surprised if Horizon tried to buy them out. I don't know what their current financial situation is but it seems a logical fit. I dont think there is that much overlap with Athearn -MDC.

Having seen some of this before the employee buyout maybe a ruse to get a better price out of a potential buyer . If he doesn't get what he wants he may Un retire.
 
I read that DCS will continue and be run by some of the current staff once MTH shuts down.
That's not good news for DCS haters.

As for MTH continuing, it has been mentioned in the announcement that staff may purchase but unless a deal has been struck, any company could come along and purchase assets. If they do, they could produced models and put DCC electronics in them, ending the propriety nature of the decoders.

I have never bought any MTH trains so don't have any personal interest in the outcome.
 

Railrunner130

Well-Known Member
I had forgotten about the issues brought up by Iron Horseman, so I'd like to alter my previous statement. I never purchased any MTH equipment, but blamed it mostly on their lack of selection in the HO world.

1. Frivolous law suits and bullying are no way to run a business. For this, I say "good riddance". That doesn't make for good members of any community. This is the original reason I didn't purchase from them.

2. It's not good to lose a large manufacturer in the model railroad community. Especially locomotive manufacturers, because there really aren't that many.

3. It's never good to lose jobs. As a part B, those employees possess skills that are difficult to replace.

So, hopefully, someone can take over the business and be more open and responsive to the model railroad community. If it's an employee buyout, which I think would be the best outcome (reference reason #3), hopefully they've learned the lessons listed above.
 
Regarding 3. Keep in mind the announcement of MTH shut-down is about a year in advance. That means anyone who is in good standing and an employee has a time to assess their future. The worst thing, and I've been there, is to lose your job with no-notice. Boom. There will be time if employee's want to negotiate for tooling or control to continue producing some or many MTH products or to seek other opportunities while still employed.
 




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