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Chuck

MTH Closing In 2021

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June 8, 2020

 

 First, on behalf of M.T.H. Electric Trains, I want to thank you for the support and encouragement you have shown my company over our 40-year journey. From humble beginnings and a lot of hard work, we were able to build one of the world's largest model train manufacturers - one unquestionably buoyed by your unwavering support.

In particular, I am proud that M.T.H. has released more models than any train manufacturer in the history of our hobby. The variety, quality, and infusion of technology throughout our offerings allowed M.T.H. Electric Trains to help bring enjoyment to all who share our wonderful hobby.

 

It is, therefore, with mixed emotions that I tell you I have decided to retire in 2021 and close the business.

 

The last two M.T.H. catalogs, our 2020 Volume 2 O Gauge catalog, and our 2020 HO catalog and all non-delivered items from our 2020 Volume 1 O Gauge catalog, 2020 Ready-to-Run Train Set catalog, 2019-2020 S Gauge catalog, and 2019-2020 G Gauge catalog will feature the last products produced by M.T.H. Electric Trains.

 

The new items featured in all these catalogs will be available beginning Summer 2020 through April 2021 and will carry our limited one-year warranty supported by our Authorized Service Center network and the M.T.H. Service Department. Upon our closing in May 2021, our ASC network will provide warranty coverage through April 2022. A list of M.T.H. Authorized Service Centers is available on the M.T.H. website and will be updated as M.T.H. Authorized Retailers join the program over the coming months.

M.T.H. Electric Trains would not have enjoyed success without the support of the M.T.H. Authorized Retailer network. While traditional retail has changed significantly over the past decade, the independent hobby shop has been and continues to be the most important cog in our distribution chain. I truly appreciate the support and friendship these shops have shown M.T.H. I wish all of them good luck and prosperity in the years to come.

 

Finally, I want to thank all of my employees for their hard work over the years. Most of them have been with me for decades and their loyalty and talents were paramount to our success.

 

With thousands of tools and molds and a wealth of intellectual property, a new model railroading company may arise from my former company as I entertain various options and buyers. One scenario is a new company organized and owned by members of my current staff. Their decades of experience, work ethic, and creative talent will ensure success regardless of who owns the assets while providing a welcome bridge between the past 40 years and the future.

 

The remainder of my time will be busy as we clear out inventory and other miscellaneous items accumulated over the past 40 years. As that process evolves, we’ll be offering consumer and retailer purchase opportunities

 

Again, from the bottom of my heart, thank you for your loyal support for all these years.

 

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What a shock, I didn't see that coming. I am sad to hear this. Maybe someone will come forward and continue MTH's legacy. Bob.

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The future is already taking shape as I've spoken with the folks taking over the parts end of things.  So there will be continuity just in a different form than it is today.  MTH and Trainworld have both already taken down the above Mike Wolf letter which likely gives an idea that continuity for the train mfg end of things is likely in process.  So what I am seeing and hearing, just need to give this time to let things settle out.  There is too much product out there for there to not be financial interest in providing support, repair etc.  Stay tuned...

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2 hours ago, rbrown7713 said:

What a shock, I didn't see that coming. I am sad to hear this. Maybe someone will come forward and continue MTH's legacy. Bob.

 

Me neither and is a shock!

 

I started buying MTH O Gauge back in the late 90's...say around 1997 with the then cool ProtoSounds by QSI :Slightly_Smiling_Face_Emoji(24x24):

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Sure thing :)  

 

I have also spoken with the folks that will be taking over the parts end of it and repair/replacement board/upgrade kits etc will continue to be made and made available to dealers etc.  So key critical components to keep trains running such as the electronics will continue to be available.  It seems clear to me that MTH will continue but just organized differently.  I don't think any single person/group had the resources to buy the whole thing out and that is why it is being broken out.  There is just too too much product out there for this to just go away (as the initial Mike Wolf letter gave the impression might happen). 

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That’s so sad. 
 

Ok. I get wanting to retire. But why go out this way.?  Just Suddenly fold up the company you spent your life building. Why weren’t they grooming a successor ?  or to sell the company?  Why just walk away? Is there some underlying reason? 

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From like 1997 to 2003 I was heavily invested into MTH & Lionel O Gauge and that layout was roughly 20' x 24' multiple tiered with trains running everywhere...it was great!

 

But then this ad where MTH announced the RailKing One-Gauge lineup started running back in 2000 or 2001 in the O Gauge Railroading magazine and maybe the Classic Toy Trains.

 

I was hooked! Figured why am I pay $1,400.00 for a MTH O Gauge Premier Challenger when can buy the same for less that's twice the size??!! Original MSRP was $999.95 and street price was $849.95. Well it took several years for those Challengers to be made and Mike felt so bad about about it so they tossed in a free DCS remote with each Challenger purchased.

 

This ad blew me away!!

 

1953294872_MTH-OneGauge-ChallengerAd.jpg.9b46a757cfe75d418a01811f1044ee60.jpg

 

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https://mthtrains.com/news/659 

 

 

DCS/Proto-Sound Lives On

 

June 9, 2020 - With the scheduled closing of M.T.H. Electric Trains next year, support for the DCS Digital Command System and the Proto-Sound 3.0 onboard locomotive systems will continue through a new independent company headed up by current M.T.H. staff once direct M.T.H. support for the systems concludes on June 1, 2021.

The new tech company will continue to manufacture and provide support including any necessary software updates to the DCS hardware or DCS WiFi App. In fact, new and exciting product ideas are currently under development.

The DCS System controls any Proto-Sound 2.0 and later equipped locomotives and first debuted 18 years ago. It has been an integral part of the M.T.H. product line family since its inception and its continuation beyond the closing of M.T.H. is an important part of the transition envisioned by retiring M.T.H. president Mike Wolf.

As the retirement transition process moves forward, more details about the new company's creation and ongoing development of M.T.H.'s technology packages will be announced. Stay tuned.

 

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