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Post by valenciajim on Jul 7, 2015 15:04:29 GMT -8
According to their website:
"It’s with great sadness we send this message to our friends, customers and vendors.
As of today July 07, 2015, we are closed. Due to circumstances beyond our control, the stockholders had to close and declare insolvency.
We had sixty-nine wonderful years and we are sorry the journey has to end.
All of us at Allied Model Trains, Nick, Fred, George, Karie, Sam, and Dave thank you for all the years of support.
Allied Model Trains"
I went to the store in March and was really disappointed. They did not have much inventory and the guy behind the counter was more interested in talking to his girlfriend on the cell phone than answering my questions. He was kind of upset when I went to the cash register to pay for the items I wanted to purchase, as it interrupted his conversation. In light of that experience I was thinking that Allied was not the Allied of old and would not last much longer.
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Post by Dear Leader on Jul 7, 2015 16:28:56 GMT -8
Today, July 7, Allied Models has declared insolvency, and has gone out of business. They are no more. The slow decline of the store has finally come to a merciful end. RIP! |
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Post by atsfan on Jul 7, 2015 17:53:03 GMT -8
Effective right away they are closing.
Allied moved some years ago to a smaller location.
I picked up some UPS Trailers there but their stock levels were low and all was full retail.
Finding good train store in the USA is getting harder all the time.
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Post by valenciajim on Jul 8, 2015 8:35:35 GMT -8
The store was once the store of the stars--I saw several there over the years. But they always charged MSRP on everything. Once Mr. Drucker sold the store and it moved across the street to a smaller location, its days were numbered.
I am not sure what the difference is between declaring insolvency and declaring bankruptcy. I guess bankruptcy is a formal legal filing.
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Post by atsfan on Jul 8, 2015 16:12:21 GMT -8
The store was once the store of the stars--I saw several there over the years. But they always charged MSRP on everything. Once Mr. Drucker sold the store and it moved across the street to a smaller location, its days were numbered. I am not sure what the difference is between declaring insolvency and declaring bankruptcy. I guess bankruptcy is a formal legal filing. Bankruptcy has some protections from creditors. |
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Post by valenciajim on Jul 8, 2015 19:41:49 GMT -8
I realize that bankruptcy is a formal proceeding that restructures debt and provides protection against creditors. How do you declare insolvency? From what I can tell that is the term used to enter into bankruptcy like proceedings in other countries such as the UK or France. From what I could tell, there is no procedure for filing a declaration of insolvency. Clearly insolvency is when your assets exceed your liabilities. That is an accounting and tax concept. However, bankruptcy is a formal legal process. Interesting to see that the folks who own Allied parsed their words. The stockholders must have decided to cease doing business and a bankruptcy filing is probably pending.
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Post by Dear Leader on Jul 9, 2015 13:26:18 GMT -8
When the store was sold, part of the sale was that the new store would get a low rent for a fixed number of years. The rent would then go up after a the time expired. I have to wonder if the rent was being raised by Mr. D. Being how the area going to be the new "Silicon Shore", I bet the rent was going to skyrocket. With all the empty shelves, I always wondered how they could afford to pay the three employees, and still make a profit for the three partners, with nothing on the shelves, nothing new coming into the store, and, at times, crappy customer service.
I have to wonder if the partners well come out ahead claiming a loss on their taxes. I think the three employee's will be the only losers in this.
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Post by atsfan on Jul 9, 2015 17:54:51 GMT -8
Last year the shelves were kinda sparse now that you mention it.
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Post by valenciajim on Jul 9, 2015 19:30:47 GMT -8
Coast Daylight--you are right--rents are skyrocketing in that area because of al the tech companies moving there. As someone who was a practicing CPA for 40+ years, nobody comes out ahead with a tax loss unless they are in the 100% tax bracket. Even in the Peoples' Democratic Republic of California taxes are not that high. If they are in fact insolvent, there may be taxable income from the discharge of debts.
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Post by Deleted on Jul 10, 2015 20:18:27 GMT -8
Word on the street is Allied will be filing Chapter 7 bankruptcy. Also there was differences within the partnership, with one not carrying his weight, but getting a check. The major partner was upset with a minor partner, got upset and pulled the plug. Be interesting to see what little stock at Allied gets moved over to the OWS, and what impact Chapter 7 has on the OWS. Take all this with a grain of salt. It was told to me by someone close to the unfolding events. I'm just a bystander. |
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Post by valenciajim on Jul 11, 2015 8:39:55 GMT -8
zzyzzx--Does your handle come from a stop on I-15 driving to Vegas? Interesting story about Allied that is not surprising. Hopefully the corporate formalities were properly followed and there will be no adverse impact to OWS.
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Post by Deleted on Jul 11, 2015 10:28:52 GMT -8
zzyzzx--Does your handle come from a stop on I-15 driving to Vegas? Interesting story about Allied that is not surprising. Hopefully the corporate formalities were properly followed and there will be no adverse impact to OWS. Yes, my handle comes from Curtis Howe Springer's former Mineral Springs and Health Spa. I enjoy spending time there for inward reflection. It's a special place for me. |
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