For anyone who has not heard, Hornby have sold the model racing car side for £20million, which will help pay off debts and maybe leave something for investment in the model railway side of things

https://www.telegraph.co.uk/business/2026/02/27/hornby-sells-off-scalextric-60-years-purbeck-capital/

Quote from: Newportnobby on March 05, 2026, 09:06:37 AMFor anyone who has not heard, Hornby have sold the model racing car side for £20million, which will help pay off debts and maybe leave something for investment in the model railway side of things

https://www.telegraph.co.uk/business/2026/02/27/hornby-sells-off-scalextric-60-years-purbeck-capital/

From what I have read only £8.5m is to be paid up front with the rest paid over an undetermined period from "available cashflow". Hornby has a lot of debt and has had to roll over at least some of it that was due to be repaid, so will at least some of this cash generated actually go to pay down debt?

The details of the deal seem fairly complex, and Hornby will from what I have read still have some involvement in the Scalextric brand. I am sure greater minds than mine involved have decided this is best for Hornby, but I can't help but reflect that selling off profitable assets to generate cash doesn't feel all that sustainable if underlying profitability of the Group as a whole is in a more challenging place 

Roy

Quote from: Roy L S on March 05, 2026, 09:32:29 AM

Quote from: Newportnobby on March 05, 2026, 09:06:37 AMFor anyone who has not heard, Hornby have sold the model racing car side for £20million, which will help pay off debts and maybe leave something for investment in the model railway side of things

https://www.telegraph.co.uk/business/2026/02/27/hornby-sells-off-scalextric-60-years-purbeck-capital/

From what I have read only £8.5m is to be paid up front with the rest paid over an undetermined period from "available cashflow". Hornby has a lot of debt and has had to roll over at least some of it that was due to be repaid, so will at least some of this cash generated actually go to pay down debt?

The details of the deal seem fairly complex, and Hornby will from what I have read still have some involvement in the Scalextric brand. I am sure greater minds than mine involved have decided this is best for Hornby, but I can't help but reflect that selling off profitable assets to generate cash doesn't feel all that sustainable if underlying profitability of the Group as a whole is in a more challenging place 

Roy

I agree with Roy, selling off a profitable asset smacks at desperation to me. Setting up the TT range has cost them a lot and talking to the owner of the model shop I use its not selling anything like what Hornby hoped for.

Quote from: middlefour on March 05, 2026, 11:32:44 AM... TT range...  talking to the owner of the model shop I use its not selling anything like what Hornby hoped for.

Continually selling out of TT:120 the more popular stock doesn't seem like poor sales to me   This sounds like the old line from disgruntled shops who weren't included as stockists when it was all online sales.

Quote from: ntpntpntp on March 05, 2026, 08:40:45 PM

Quote from: middlefour on March 05, 2026, 11:32:44 AM... TT range...  talking to the owner of the model shop I use its not selling anything like what Hornby hoped for.

Continually selling out of TT:120 the more popular stock doesn't seem like poor sales to me   This sounds like the old line from disgruntled shops who weren't included as stockists when it was all online sales.

Conversely, TT120 A3s and A4s have been selling at under £100 and some of the coaching stock is discounted by over 40% as are HSTs, certain sets have been similarly discounted, none of that is indicative of demand outstripping supply across the whole range, it is predicated by either sacrificing margin to push sales, supply exceeding demand or possibly a bit of both.

I think the reality is that TT120 is encountering economic "headwinds" just like any other scale.

Roy

There's a Youtube channel called 'Little Wicket Railway' which has a video about the Scalextric sale. And other ones about financial matters regarding our hobby. My impression is the chap's analysis is fairly accurate.

Worth a look for anyone interested in this sort of thing.

All good wishes.

John

Yes  I agree with a lot of the comments here. I do not think Hornby did themselves any favours excluding dealers from selling the TT range. Plus they have brought out the cheap range of sound decoders which maybe pretty good but they do not abide by the NMRA standards set. Of course being in n gauge it does not affect us too much, although I have heard of Hornby decoders being fitted into a n gauge loco, I will stick with Zimo thank you.
Chris H.

Quote from: Roy L S on March 05, 2026, 09:02:07 PMI think the reality is that TT120 is encountering economic "headwinds" just like any other scale.

Roy

I think everything is entering economic headwinds (and about to get a lot worse) but any new scale will take time to get traction. TT is a lovely scale and they've thought pretty hard about building a product range for it.

I do wonder whether it will just go the way of Z though.

Quote from: lil chris on Today at 06:11:52 PMYes  I agree with a lot of the comments here. I do not think Hornby did themselves any favours excluding dealers from selling the TT range.

Dealers would have killed their pricing. They know exactly what they are doing and I imagine like any business they'd love to get rid of all their dealers the day they are not adding enough value.

Quote from: middlefour on March 05, 2026, 11:32:44 AMSetting up the TT range has cost them a lot and talking to the owner of the model shop I use its not selling anything like what Hornby hoped for.

Do you have any facts/evidence to support the setting up costs and current sales levels?

It (Hornby TT120) does currently seem to be heavily promoted in Social Media, forums and magazines. And I get the impression they are providing support and product to a number of modellers and magazines to build TT120 layouts and have them featured in magazine articles and on model railway forums.

It'd be nice if N gauge got the same level of support and promotion. Still, hopefully it'll be a relatively short lived interest and marketing activity and the spotlight for small scale model railways will turn back to N.