I have spoken to the Administrator at Birmingham. He tells me that a letter is being sent to everyone over the next couple of days to explain the situation. Model Works is up for sale and will be in next weeks Financial Times, anybody got £1/2M? Paul.
The last accounts lodged at Companies House were for the year to July 2006. The accounts for the year to July 2007 were due to be lodged on 31 May 2008 but are late.
The accounts to July 2006 show net assets of £111k and a loss for the year to that date of £62k. Projecting things ahead to now I doubt if the trading improved so I should imagine the net assets are now negligible. In any event is there any goodwill or technical know how worth buying ?? Also there are 3 debentures over all the assets including 1 in favour of Mr Burroughs and Mr Jones which will leave nothing for the customers who have paid deposits or paid for kits in advance.
I would think the best hope for builders is for someone or some company to take on board the completion of the outstanding order book.
Taking the Duchess as an example with 12 ? kits shipped the customers will have paid £7,603 (£1,399 + (12 x £517)). That leaves £6,204 for the remaining 12 kits including the boiler kit. I would guess anyone taking the completion on board would look for a lot more than £6,204 from each customer for the remaining 12 kits. Modelworks have had the benefit of the deposit of £1,399 but the chances of any customer getting anything back from that must be zero.
Its a gloomy picture but if I were a Duchess builder I would be hoping that someone will take on board the completion even at a higher price. Otherwise you have a half built Duchess which won't be worth a lot.
Companies House records now show Modelworks to be in admin. The website makes no reference. I wonder if anyone has received a letter from the administrator? I don't expect they'll write to me since I have had no dealings but I am curious.
Denis, they will send those letters out to anyone whose name they find in MW's records, customer or not, to avoid missing someone who should have had one.
Fentmar, right now I suggest waiting until the situation re MW is clear. If someone takes over MW, they may well continue producing the rest of those kits.
As for the quality or shortcomings of what has already been received, IMHO, you may well have a claim against the company for such remedial work as is required to bring it up to standard. If there are no buyers for MW, and hence no continuity of production to finish the part built kits, then those kits are worth very little. After all, half a locomotive that cannot be finished is worth little more than the scrap metal value. Hence, anyone in that position could justifiably claim against the company for the monies they have spent so far.
The trouble with a claim against the company, Alan, is that they almost certainly have no money to pay damages or ability to put the problem right.
A kit loco where many major parts is missing is without doubt of very limited value.
If payment was made by credit dard (not debit card) in many circumstances the credit card company will be jointly liable with ModelWorks. That means that the credit card company should at least pay back the money paid. Without doubt this should be the first call.
When Winson went belly up we, on a number of occasions, managed to persaude the credit card company that the value of the delivered kits was so low and the work put into them by the purchasers was so great that the purchasers should be given the wreckage or be allowed to buy it for a nominal sum.
Tim, you are quite right, and indeed, they have no money.
About the only "asset" they have is the fact that x number of people still require parts to complete their models, and thus are a captive market. Someone might just do the sums for the potential sales, and reach an inflated value, working on the basis that people who have spent so much would be willing to spend more. However, if there are claims against the company, and people have recovered all or some of what they have spent, it changes the entire position.
I too am 7 kits into a 14xx loco, but to date have had absolutely no complaints as to things going together. A couple of missed countersink which were easy to do. Couple of design issues to over come - The brake rods interact with the crankshaft being probably the most notable.
Communicated with Dean yesterday and he suggested that who ever ends up with the company might be able to mostly complete the 14xx kits out of stock. Only time will tell on that one.
One of the other alternatives might be to get drawings and parts list from others who have completed their build and learn a few more engineering skills. Body work might be the most difficult bit.
Patients might be the best thing at present and "Don't Panic" - all may not be lost.
I have paid by switch which means little chance of recovering any loss.
First point to note is it is inconceivable to me that someone is going to buy a business that has failed twice in a decade and which doesn't have a great reputation (My experience has been "ok" but the balance of opinion here does not share my personal view). 2ndly no bank is going to fund a business that has failed twice and has no assets (noting that the head office and machinery are vested in another company).
I spoke to a friend in the know and we are absolutely kn&ckered if we don't get the designs. The 14xx is designed from Modelworks drawings adapted from the original design drawings. No way in the world anyone is going to manufacture them from isometric drawings with no measurements.
So if the business has no buyer (I may be proved wrong) our only option is to buy the parts (if they are available) and/or the designs from the administrator.
I am in the same position as you fentmar i have completed 7 kits and paid by debit card, I will be surprised if the remaining kits can be supplied from stock as since the 20April I have been trying to get kit 8 but was constantly being told they were having to produce this kit from its component parts.
I don't hold out much hope of getting the engine finished by the company but as, has been suggested will have to be patient and see what happens.
With luck you got the boiler as it was kit 7 of the Winson production.
I am not sure if this is an acceptable place to say it (mods please move or delete if not) but I have an almost complete and assembled Winson 1400 which I was going to sell on. I didn't assembly it. To my knowledge it is missing a grate and ashpan, most of the backhead fittings, the blast pipe, front and rear spectacle plates and roof so nothing too major. There are other minor bits and bobs missing I'm sure.
I'd rather it was inspected before purchase.
I'm open to offers but I would think it could be cheaper way to get the bits you want.
I am 20 parts through the 24 Kit 4 1/2 in Foden all sadley paid by Debit card. Funnily enough most of the expensive parts are still to come..... Obiously the best outcome would be for someone to continue supplying the Kits and only time will tell. I would be interested if any one can comment on fairly minor point but here goes. Kit 18 was to include the crankshaft along with some other items. the crankshaft although listed in the parts list was not delivered. is this worth replying to the administrators letter.
I have complete kit 6 of I think 12 for the Modelworks type 57XX, I understand that about 25 of this latest batch of type 57XX have been sold. I have paid by Nat West Gold Card. I must say that I have been very pleased with the quality of the engineering of the kits, the few missing parts were sent to me by return and when I took the model to the factory three weeks ago Ian was very helpful and resolved my problem of binding motion very quickly. One of the pistons was contacting the end of the cylinder.On reflection although there were piles ofpart machined parts and lots of part built boilers, there were very few people about. Naturally I am concerned that the project won't now be completed. Personally I thought Modelworks were on to a winning formula with a high value product sold to a captive cliental. I was enjoying the project so much that I was looking forward to building two further models over say 4 years.Are there any more type 57XX builders out there ?