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Wingnut Wings closing down


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On 4/13/2020 at 8:46 PM, Duncan B said:

I agree, Richard Alexander knew exactly what he was doing when he made his reply to Dave Wilson on WW1aircraftmodels (everyone should read the original statement and make their own mind up whether this is wild speculation or not) . He will have known that it would go viral and how we would react. When the General Manager of any Company makes a statement like that, whether it was through an official channel or unofficial, the reaction is always going to be the same because it has come from 'the horse's mouth'. RA is no newcomer to his job, he takes the Company's reputation very seriously so for him to go public with his "grim" assessment should be taken at face value.

Anything and everything else written is speculation at this time but the General Manager of Wingnut Wings did fire the first warning shot that is quite clear. He has either overstepped the mark (which given his previous track record of keeping things so close to his chest would seem so out of character) and will be replaced in due course or he's spot on, time will tell.

 

Duncan B 

Spot on Duncan, the other piece of information that also concerns me about WNW's future is the fact that they have not applied for the government wage subsidies available to businesses for 12 weeks of wage relief. Weta Workshops have applied, but unless WNWings [and TAVL] are part of that group of workers, i.e. WETA is the overall employer/they are not separate companies, things do not augur well... I truly hope WNWings are part of the broader WETA company in this context. 

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I don't think this has anything to do with the performance of WnW as a model company, but everything to do with PJ's larger financing arrangements.  It seems he's under investigation for using grants funded by the NZ taxpayer to bring film work to the country, to subsidise his other enterprises.

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  • Julien locked this topic
  • Julien unlocked this topic

I will unlock this or people to comment, but no speculation, rumours etc  please (and yes I know its the rumor section but for good rumours) 

 

Julien

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As a business owner myself as well as holding a senior management role in a much larger company as my day-job, I'd like to point out that however well intentioned (although I'm being generous there) the spreading of such rumours are, they can quickly become a self fulfilling prophecy for a business as the cancerous spread of negativity does lead to potential solutions to problems having the doors shut on them as wider confidence dwindles.

 

If WNW does close, there's a reasonable chance that the modelling community didn't necessarily start the problems, but helped nail down the lid of the coffin.

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Just now, Jamie @ Sovereign Hobbies said:

As a business owner myself as well as holding a senior management role in a much larger company as my day-job, I'd like to point out that however well intentioned (although I'm being generous there) the spreading of such rumours are, they can quickly become a self fulfilling prophecy for a business as the cancerous spread of negativity does lead to potential solutions to problems having the doors shut on them as wider confidence dwindles.

 

If WNW does close, there's a reasonable chance that the modelling community didn't necessarily start the problems, but helped nail down the lid of the coffin.

Well said Jamie, Which is why we dont want any of that here. We will show what they show, and it it changes we will change that,

 

Thx

 

Julien

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2 hours ago, Jamie @ Sovereign Hobbies said:

As a business owner myself as well as holding a senior management role in a much larger company as my day-job, I'd like to point out that however well intentioned (although I'm being generous there) the spreading of such rumours are, they can quickly become a self fulfilling prophecy for a business as the cancerous spread of negativity does lead to potential solutions to problems having the doors shut on them as wider confidence dwindles.

 

If WNW does close, there's a reasonable chance that the modelling community didn't necessarily start the problems, but helped nail down the lid of the coffin.

The world is on the cusp of a historic recession. Businesses are struggling and going bust every day. The unemployment rate in the US is heading towards 20% - unheard of - oil is at $20 a barrel or so, as the world battens down the hatches to fight the coronavirus. Interest rates are around zero the world over. 

 

The New Zealand economy has been hit harder than most, as they've shut down everything for longer. It's working, but the effect on the economy is profound.

 

WNW are unable to operate at all, except taking orders on their website, because of NZ government rules. They outsource pretty much everything - tooling, decal printing, instruction printing, packaging, PE, etc, from around the world. International trade is severely restricted, so much so that WNW may be powerless to do anything themselves.

 

With all of that happening - multiple, historic, unique events the world over - quite why do you think that the modelling community had any impact whatsoever on WNW's decision making?

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On 4/14/2020 at 11:34 AM, Roger Holden said:

It seems he's under investigation for using grants funded by the NZ taxpayer to bring film work to the country, to subsidise his other enterprises.

That seems to be the real reason and explains, why all is closed so quickly. The vintage aviator company seems to be also affected.

Found an article from Feb:

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12306788

 

Another one, why he comes under pressure:

https://www.tvnz.co.nz/one-news/new-zealand/does-end-film-industry-subsidies-come-price-says-nz-initiative

Edited by Bughunter
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13 minutes ago, Bughunter said:

That seems to be the real reason and explains, why all is closed so quickly. The vintage aviator company seems to be also affected.

Found an article from Feb:

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12306788

No, he's not "under investigation".  It's all been done legally, there is no investigation.

 

Other companies got the grant money, then used it to buy products & services from WETA. So WETA earned the "subsidy" perfectly legally, nothing to do with WNW or TVAL.

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3 hours ago, dekenba said:

The world is on the cusp of a historic recession. Businesses are struggling and going bust every day. The unemployment rate in the US is heading towards 20% - unheard of - oil is at $20 a barrel or so, as the world battens down the hatches to fight the coronavirus. Interest rates are around zero the world over. 

 

The New Zealand economy has been hit harder than most, as they've shut down everything for longer. It's working, but the effect on the economy is profound.

 

WNW are unable to operate at all, except taking orders on their website, because of NZ government rules. They outsource pretty much everything - tooling, decal printing, instruction printing, packaging, PE, etc, from around the world. International trade is severely restricted, so much so that WNW may be powerless to do anything themselves.

 

With all of that happening - multiple, historic, unique events the world over - quite why do you think that the modelling community had any impact whatsoever on WNW's decision making?

If the rumours - becasue so far that is only what they are - are true, the modelling community has certainly no guilt in this demise by spreading rumours since the damage is already done. 

 

If however the rumours are false, the rumours are potentially damaging as it will prevent people from making orders from WNW directly, which will hamper their cashflow in a likely already difficult situation (as the official message does imply it is!). Even without these rumours, people were already reluctant to make any orders due to the NZ lockdown.

 

That people are taking it for true is obvious - several kits have sold out at hannants only today.

I really hope WNW will come out with an official statement soon, be it either to deny or confirm.

Edited by Torbjorn
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24 minutes ago, dekenba said:

No, he's not "under investigation".  It's all been done legally, there is no investigation.

 

Other companies got the grant money, then used it to buy products & services from WETA. So WETA earned the "subsidy" perfectly legally, nothing to do with WNW or TVAL.

This is an interesting article from 2016 showing the close relationship between Weta and WNW:

https://www.stuff.co.nz/business/83426192/weta-workshop-partners-with-peter-jacksons-wingnut-wings

It's going to be fascinating to see who gets the molds. Perhaps Peter will form a new company and repurchase the assets. I feel so sorry for everyone at Wingnut. It was a class organization that set new standards. 

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43 minutes ago, Hobo said:

This is an interesting article from 2016 showing the close relationship between Weta and WNW:

https://www.stuff.co.nz/business/83426192/weta-workshop-partners-with-peter-jacksons-wingnut-wings

It's going to be fascinating to see who gets the molds. Perhaps Peter will form a new company and repurchase the assets. I feel so sorry for everyone at Wingnut. It was a class organization that set new standards. 

WNW chose WETA as distributors for the kits, when they stopped free delivery.

 

However, WETA made a bit of a pigs ear of it - quite why WNW had to create their own distribution system and thought they could do it better than wholesaling to model sellers, I'll never know.

 

So WNW decided to go the wholesale route after all, as well as selling direct, and WETA were binned.

 

But it was a business contract, with WETA buying from WNW at wholesale discount, and then reselling with their mark up. Unless WNW sold them the kits at very low prices, it's all legal and above board.

48 minutes ago, Torbjorn said:

If the rumours - becasue so far that is only what they are - are true, the modelling community has certainly no guilt in this demise by spreading rumours since the damage is already done. 

 

If however the rumours are false, the rumours are potentially damaging as it will prevent people from making orders from WNW directly, which will hamper their cashflow in a likely already difficult situation (as the official message does imply it is!). Even without these rumours, people were already reluctant to make any orders due to the NZ lockdown.

 

That people are taking it for true is obvious - several kits have sold out at hannants only today.

I really hope WNW will come put with something official soon, be it either to deny or confirm.

If the rumours were false - sourced from multiple WNW connected people - all WNW had to do was put a notice up on their website, or send an email. The WWI 1/32 community is small, and word would have got out very quickly.

 

The fact they declined to do so says a lot in my eyes.

 

I would hazard a guess that their website sales went ballistic as well, as people scrambled to buy before the demise. WNW are renowned for selling out, and modellers didn't want to miss out.

 

In either case, modellers carry no blame as far as I can see.

 

Of course, that's just my opinion - I'm not claiming to know more, or that I must be correct, and my opinion is worth no more than the same as yours.

 

 I suspect the truth will come out before long, and I'm expecting it not to be simple, whatever happened.

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This is really sad news. I’ve been buying WNW kits since the first four kits were released 11 years ago. I think they’ve been inspirational in the WWI  aircraft modelling field in particular and also set the bar a little higher for modelling in general.

 

It sort of reminds me of the  day when. Humbrol and Airfix ceased trading for a while but were then saved by Hornby and went from strength to strength. I hope that something similar happens with the WNW brand and we see the kits again in the future as a similar package with the instructions in the same format a f high quality boxes.

 

I wish Richard Alexander and his team all the best for the future whatever happens and thank them for all the amazing kits they’ve developed over the last 11 years and the impact they’ve had on WWI aircraft modelling.

 

Mark

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Hey Gentlemans, this is strange.
Their website run.

And "Lord of the Ring" is one of most richest people in Hollywood. (And probably most richest man on NZ). 

Why he can close and sold his bussiness from day to day ?

WnW make best kits from WW I. And probably best kits ever.
Lancaster looks as most detailed kit of all times in kit scale modelling  bussines.

Fokker Dr. I was potentionaly bestseller for long years.

 

Not is a "rumor only" ?

 

When you have not MILIONS BUT BILIONS on your bank account - why you must sold your "toy" bussiness ?

 

 

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1 hour ago, AlCZ said:

And probably most richest man on NZ

Why he needs to take more then $41m per year from NZ tax payers????

So at least with the Corona crisis others needs the money more so this annual payment will no longer exist. And already he gives up?

Not only WingNutWing, I'm curious to see the future of Vintage Aviator.

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7 minutes ago, Bughunter said:

Why he needs to take more then $41m per year from NZ tax payers????

So at least with the Corona crisis others needs the money more so this annual payment will no longer exist. And already he gives up?

Not only WingNutWing, I'm curious to see the future of Vintage Aviator.

He doesn't "take" $41m per year from NZ tax payers. That money is supplied, in the form of grants, to help companies in the NZ film industry.

 

Those companies spend the grant money - as they must - and use some of it to purchase goods & services from WETA, because WETA are the best.

 

So WETA earns the $41m by providing services to the NZ film industry, which has help from the NZ government.

 

It's simply payment for services in an open market. NOT a subsidy to PJ at all.

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WNW have now updated their site message. They seem to still be shying away from confirmation of closure, and their suspension of orders seems to be linked with COVID 19. 

 

QvLXDRj.jpg

 

So I still hold some hope. Time will tell. 

 

Cheers,

BC

Edited by Brad Cancian
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57 minutes ago, dekenba said:

So WETA earns the $41m by providing services to the NZ film industry, which has help from the NZ government.

 

 

But apparently he can't or won't provide a breakdown of how that money has been spent, which rather suggests it hasn't all gone to the film industry, but some to his other projects like TVAL & WNW.....?

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