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Galaxy Models, in administration


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I was just going to look at Galaxy models mustang kit when I read this:

Galaxy Models and Hobbies Limited – in Administration

Mark Upton of Ensors Chartered Accountants was appointed as Administrator of the company on 26 June 2012

Please note that any credit card transactions during the Administration period will appear on your statement as ‘Ensors’

In connection with the Administration, we are now seeking offers for the business and assets. If you are interested in purchasing all or any of the stock, fixed assets, intellectual property and/or goodwill, please contact a member of the Ensors Business Recovery Team on 01473 220022.

Sad news, they made some great builders kits at very good prices

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Just goes to show, although UK model prices seem to be high, compared to retail Chinese prices, the margins must be minimal for the retailers in the UK.

I had thought that they had a very strong Internet/postal business and that would be the way of the future. So what hope is there for most LMS?

A great pity.

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Depends if you think wages are too high. That's a large percentage of overheads and I bet most shops pay their staff little over minimum wage.  The only area of taxation I ever have a massive problem with is business rates and it's less to do with the tax and more to do with the application.  The 'rateable value' has little measure other than what some town official thinks.  At least most taxes are based on a percentage that's based in reality!

Edited By Simon B on 28/06/2012 17:22:27

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The minimum wage will not have you living in the lap of luxury.

The LMS, to me closed some years back. The owner sited quite a high rent, this was compounded by very high business rates, additional waste charges for business, water rates for a tap, plus all the standards that you expect such as electricity. Of course then there was NI contributions as a sole trader. The overheads were very impressive. I could not see how any MS could sell enough to even break even.

I had thought that Internet/distance trading could generate the volumes necessary to make a go of it. Seems not.

As other contributors I have used Galaxy and have been satisfied by their service and price.

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That's a shame. Galaxy are also one of the last UK Kit manufacturers, of which recently ordered a Magician kit to build later on. The web site is still up and running, but that could change in the new month...

Could Ali buy it out, or at least keep something going?

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All is not lost, not yet.

It has been pointed out that the business could well be sold on.

I assume that Galaxy appointed their own administrators, and to some extent have some influence on how some aspects develop.

Yet it does demonstrate to me that there are probably easier ways of paying the bills.

I am not sure that the present business arrangements where there are distributors/ importers and then the LMS is a system that can continue indefinitely in this era. I expect more MS being importers from the Far east and also buying in directly, supplies from Graupner, Multiplex and various engine suppliers etc.,although i expect that many manufacturers will prefer to deal with national agents. Yet for this to work the logistics (and costings) become very important. I sense modelling retailing is at a cross roads. I am not sure that the two sets of mark ups can be sustained, if money remains tight. It will be fascinating to see how the model trade develops in the coming times.

I do wish Galaxy models and their staff all the best, again.

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That's a real shame, they used to be my local model shop 8 years ago (before I moved) I still buy lot's of their kit's and equipment, always good service and keen to help. I remember their old shop too.

I hope someone helps them out. I have most of the Galaxy Kit's and was thinking of getting the Typhoon or Domino next. I hope this isn't the trend of things to come!

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