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Forwarded by one of my Large Scale friends:
 
 
Polk’s Will Close Its Doors 12-31-13

October 1st, 2013

Since 1935, we have provided service and innovation to the Hobby industry. In this latest downturn, we cut back staff to the minimum required to survive. Then the government battle over the debt ceiling drove the consumer market down even further.

We’ve managed to stay in business, but the continued depression for the consumer has caused us to fall into debt that is unsustainable. We have put several million dollars into product development over recent years, but the need for customers to cut back on non-essentials has caused this investment to be lacking in returns.

We have seen leisure activities like golf courses plunge in popularity, as funds for such recreation have dried up. It seems to be the same for hobby time investments. Our products are no longer inexpensive as they were in the 1930s-era Depression. The cost of manufacturing along with minimum production runs and long lead times has caused a lack of ability to continue as a sustainable entity. It’s no longer a business!

It has been a pleasure to help our creative consumer base to enjoy their hobby and we have no regrets in doing so. Our business grew every year until the 2008 as the recession caused a shrinking of the mindset to stay active in our large-scale model train arena. We know that smaller scales have remained viable, but the higher cost of Large Scale trains and the space required to run them have not maintained their share of the market. Our airplane R/C portion of our business was lost when our patented frequency changer was lost to the 2.4Ghz portion of the marketplace, with no frequency compounds needed any longer.

For 80 years, the Polk family has made a fair living in the Hobby industry. I can’t help but remember the scores of co-workers that have helped make this organization as special as it was. Thanks to them all, but notably: Gil Rose, B.M. Song, J.K. Kim, Sam Kimm, Tom Flynn, Cliff Crane, Charlie Binder, Marvin Binder, John and Sherry Shievdayal, Aixa Lebron, Joe Bamberger, David Newell, Walter Matuch, John Mikesh, Navin Shievdayal, Marguerite Hubert (Rose), Michael J. Vickey, Jonathan Polk, Scott Polk, Fred Polk, Irwin Polk, Nathan Polk, Maryann Polk Bob Calandra, George Adams, Michael Hauptmann and so many others, it would take a book to list them all. While I can’t list all the hundreds that were part of the team, they remain in my heart and mind.

Our humble thanks to our loyal customers. Our apologies for not being able to keep this almost 80-year-old business going. It’s a heartbreaker for us all.


All the best,

The Polk Family


Last edited by Allan Miller
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What a shame!

I used to enjoy going to Polk's Hobby Shop in Manhattan back when it was a six story hobby shop, but that was years ago. The last time I was there, the store had been consolidated down to one floor, which may have been in the basement (its been quite a while).

 

It was earlier this year that I purchased my first RMT/Aristocraft trains. While certainly not scale, I thought they were well made, and an excellent value. 

I hope the RMT line will continue.

Just received the email from Aristo-Craft early this morning.  Anytime a legit business shuts down, it saddens me very much.  Whether or not we operate large scale trains, it does affect people, first the employees and then us as a viable outlet is now gone.  Personally, I don't have any large scale trains, but always liked the look of the items Scott and team had produced. 

 

Hopefully, Walter will chime in later this morning.  This summer have been purchasing some shadow rail for a train layout and was going to order more this week. 

Originally Posted by Rusty Traque:
Originally Posted by overlandflyer:

sorry to say i'm not that sad about losing one of the major manufacturers of out of scale (1:29) trains.

Cold...

 

Rusty

i said i'm sorry, not glad.  i would have rather had them see the errors of their ways and switched to 1:32 scale.  it surely would have attracted a number of buyers who, since MTH seems to have abandoned that scale, have very few options these days.

 

frankly i never saw their point.  talk to 1:29 scale people and they pretty much say they don't care about scale.  talk to #1 scale modelers and 1:29 is of no interest to them.  unfortunately even leaving the hobby, they have already flooded the market with their products which will probably remain for quite some time to come.

Dear Allen, As far as "Wake up and smell the roses" your comment is well taken. Come on guys! Doesn't 80 years of doing a quality business count for something? Look we all respect market forces " if you build it they will come!" but when they don't come anymore that hurts! As a member of a long standing family business myself, I have to stand and salute a leader who has been at it so long (carrying the banner, I mean) even though I have not formally had any dealings with them. It is a sad day, when a player with such clout leaves the field! IMHO!
Originally Posted by DMASSO:

It is too bad as various companies disappear. I am not up on G trains, but besides USA trains (Charles Ro), who else makes G scale trains?

high end 1:32 would be Aster (live steam).

 

Accucraft makes both narrow gauge (1:20.3) and standard gauge (1:32) trains for #1 gauge track, though i wish they would produce more rolling stock.

G scale is what got me back into Model Railroading, and particularly the American rail designs that Aristocraft was doing vs LGB.  The lack of new designs and operating accessories is what moved me back to O scale.

 

Bought one  Aristo loco, several pieces of rolling stocks and good amount of track, transformers etcc from them.

 

The Polk's and their employees were good to deal with.  This was easy to see coming though.  Their farewell letter explains the economic environment well.

 

Sad to see them go.

Originally Posted by Allan Miller:

 

I know some here will say "who cares...that's just Large Scale," but those folks need to wake up, smell the roses, and take a good look at the larger picture.

Kinda the 'Canary in a Coal mine' if you will.  The economy is always listed as 'returning' but real folks on the front line know different. This is a important event that I know other hobby biz folks sat up straight, as I did when I got the e-mail this AM, and start thinking about the future. 

Please don't make this a politics battle....but part of this announcement may be based off what Polk's feels will happen in 2014. My insurance is going up....but my sister in law showed me her letter telling her her premium will go from $200 a month to $600 a month 1/1/14......think how that affects disposable income........

Sad on many levels......

 

 

PS....I have some Aristo G scale...PCC is fantastic.....nice rolling stock...glad I bought them.

 

Originally Posted by Enginear-Joe:

 G scale is a mess. I'm not sure it will ever straighten out. Time will tell. It may take more time than we have.

You're so right.  I lost all interest in G "scale" when the manufacturers decided that "G scale" (aka "large scale") meant anything they wanted it to mean.

 

But to keep on the original topic, the loss of Polk's is bad news for us all.

 

 

Originally Posted by Enginear-Joe:

 A lot of G scale guys were attacking Aristo for different reasons. They won't be remembered. Aristo helped the scale and the hobby. It's sad if even part of the reason was due to this unfair, unbalanced attack.

 G scale is a mess. I'm not sure it will ever straighten out. Time will tell. It may take more time than we have.


If you kept the 1:29 stuff away and on its own from all the other proportions used in G, the Aristo stuff didn't look too bad.

 

And it's not like O gauge is immune from running different proportioned trains on the same track, from the undersized "traditional" to the oversized K-Line Shays and Porters and everthing inbetween...

 

Rusty

Nobody likes to see a business fold but I was puzzled that the main reason given was the federal debt ceiling battle?

i owed a number of their rolling Stock items and thought they looked very good,used them with some aster 1/32 scale engines.

my own business was crippled by the 2008 downturn , it limps along now.

Fred 

Originally Posted by RailRide:

I re-read the email I got this morning and still got the impression that they're referring to the retail hobby shop Polk's (who's Google listing specifies R/C planes and G-gauge trains) and not the manufacturer Aristo-Craft. Anyone else get that interpretation?

 

---PCJ

I got the e-mail this AM....I just went back and read again. I seems the business itself not just a retail shop. Talking manufacture cost and loss of proprietary products makes it sound like the company not a shop....but that's just me. 

I hate to say it, but when Aristo went direct and then RMT it is the "kiss of death" for any company. You need a inferstructure of retailers to support your line. You can't sell direct at a lower cost than your dealers and expect them to reorder. How can you sell a track line direct as RMT was doing? It needs to be in retailers. As for G scale, it was way over saturated market. Only the outdoor railroaders survived. It lent it's self to to large a indoor layout and almost impossible to collect. In a declining market the manf.'s wound up competing with their past products. There was too much out there. I wish Scott and Walter the best.

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