Model Railroading > Caboose hobbies in denver is on it's death bed

I noticed a go fund me for Caboose circulating around the facebook pages.  Basically, Caboose is on life support and in my opinion deserves to be there because of poor business practices and a strange attempt to give the debt to the employees several months ago; here is what the fund raiser site says:

Caboose PBC is a Colorado-based public benefit corporation (soon to be majority employee-owned), and owner and operator of Caboose.  The fundamental purpose of Caboose, as stated in our corporate charter, is to serve the worldwide community of train enthusiasts in the enjoyment of our shared passion for trains.  Caboose builds upon the solid foundation of its rich 82-year legacy, occupying a singularly iconic space among the train enthusiasts and Denver retail communities. 

At the onset of the Cornoavirus, we were already facing financial challenges due to the malfunctioning of our e-commerce app.   As if to add insult to injury, our store was burglarized at 1:45 am on Easter morning.

We are therefore seeking $50,000 to assure our employees continue to receive paychecks, to help pay our rent, property taxes and basic operating expenses, and to launch our new e-commerce app, allowing us to address our customer needs worldwide.  We need these funds immediately to help bootstrap a larger funding initiative to help preserve vital businesses within the train community of train enthusiasts. 
 

Sorry, but not surprised.  We moved to Denver in 2015, Caboose was still close to downtown, shopper traffic was good.  When the building owner got a better offer, Caboose disappeared for about a year and a helf.  To my delight they relocated to a nearby suburb of Denver, which cut my travel distance by three-quarters.  Regrettably, they were not the same operation as before.  Low levels of inventory, clunky website.  This, together with the well known loss of interest in the younger generation for something other than mindless electronic-hypnosis via online games, does not auger well for their survival.

i hate to see them in this stage, but I fear it is like a long train running.

dendavis Wrote:
-------------------------------------------------------
> Sorry, but not surprised.  We moved to Denver in
> 2015, Caboose was still close to downtown, shopper
> traffic was good.  When the building owner got a
> better offer, Caboose disappeared for about a year
> and a helf.  To my delight they relocated to a
> nearby suburb of Denver, which cut my travel
> distance by three-quarters.  Regrettably, they
> were not the same operation as before.  Low
> levels of inventory, clunky website.  This,
> together with the well known loss of interest in
> the younger generation for something other than
> mindless electronic-hypnosis via online games,
> does not auger well for their survival.
>
> i hate to see them in this stage, but I fear it is
> like a long train running.

Long trains usually make money. "Pay rent and property taxes"??? I never was able to visit the original Caboose Hobbies. I understand it was top notch. Too bad for this one.

SantaFeRuss

If there was any chance of "getting back to business," one would think that the owner(s) would be offering share / partnership interests.

The current owner(s) apparently didn't even bother to insure the inventory against loss, damage or theft.  That speaks volumes about their business practices and ethics.

So does... "We need these funds immediately to help bootstrap a larger funding initiative."

Keep in mind, this was an "asset only" purchase from the original Caboose Hobbies' owners (...or maybe creditors).  They apparently are no longer involved in the operation.  Essentially, the new owner appears to be an in investor / promoter type who didn't do his homework before making the purchase.

https://www.denverpost.com/2019/01/01/lakewood-train-shop-caboose/

Unless you have cash to throw away and watch it float down the river, I think that there are better, more deserving places for your money.

Greg Stadter
Phoenix, AZ



Edited 3 time(s). Last edit at 04/21/20 04:26 by E25.

Honestly, this strikes me as odd that a retail store is setting upa GoFundMe deal... The owner used to own Marquette Rail and sold it to G&W. Not to judge anyone's finances, but you would think that someone who ran a railroad, then sold it for a large sum could handle a small business venture like this. 

I'm all for supporting companies that need help, but for some reason I'm getting the vibe that this company doesn't "need" help, but rather wants someone else to pay its bills. It seem's over the last few months Caboose has just lost its flavor and are coming off as very desperate. They have an eBay page and have some good quality stuff for sale that has come from private collections. They have the Buy It Now and make offer selections, but refuse to budge on the price. Anyone in this hobby knows that when it comes to pre-owned and out of the box stuff, you have to have some sort of wiggle room to move product. 

Even though we have the Covid-19 pandemic going on, there are ways for them to still sale trains. Other companies and hobby shops are doing so. Yes there may be a small delay in shipping, but no other hobby shops (to my knowledge) are on their hands and knees begging for a dollar on a gofundme page. 

Granted, these are just my views on the Caboose situation. It seems the new owner(s) tried to be the biggest and the best to quickly and it's biting them in the rump. I hate it that they got broken in to, but like a commentor above stated, you'd think they would've been insured for things like that. I wish them the best and hopefully they find a way to revamp the company in a positive way.  

dendavis Wrote:
-------------------------------------------------------
> Sorry, but not surprised.  We moved to Denver in
> 2015, Caboose was still close to downtown, shopper
> traffic was good.  When the building owner got a
> better offer, Caboose disappeared for about a year
> and a helf.  To my delight they relocated to a
> nearby suburb of Denver, which cut my travel
> distance by three-quarters.  Regrettably, they
> were not the same operation as before.

Semantics in this case matter and make all the difference.  The shop that was still close to downtown was Caboose Hobbies, a different model train shop with a different owner with a different website and way of doing business.  A new shop was opened to fill the void with a new name, new owner and different website and way of doing business. And as time passed, it appears an unsustainable way of business.

While I didn't visit the old Caboose Hobbies in person, I had been a customer for over 25 years.  I sold brass on consignment, I bought a few brass pieces and a number of trains over the years.  When Caboose opened to fill the void, I visited the website a number of times over the first year or so of operation and noticed trains were full MRSP, unlike Caboose Hobbies, which sold models with a discount.  Caboose Hobbies typically had trains I needed (being a Rio Grande fan) but Caboose, not so much.  Caboose Hobbies had discount prices, Caboose, not so much; I found little I needed and what was there was full MRSP.  So for me anyway, Caboose is not Caboose Hobbies in any meaningful way.

So at the outset, we lost Caboose Hobbies, sadly, September 2016.  RIP Caboose Hobbies.  The self-styled continuation of Caboose Hobbies, called Caboose, has a different owner, different way of doing things and it appears a business plan that is unsustainable.  It seemed the capitol to start up the new hobby shop might be a burden that will ulitmately crush it.  But we will likely be reading a report if/when Caboose closes, that it was yet another victim of COVID-19.  Which makes me wonder how many of business shutter as reported due to the Corona virus were really already failing and Corona just hastend closure by a few months.

It is always a bummer when I see another recognizable hobby store closing or not doing well. I remember some of the similar challenges faced when I worked at Longs Model Railroad Supply in Moreno Valley, CA. Business expenses, payroll, inventory, advertising and an owner (Longs Drug Store) that wasn't vested in model railroading. I certainly hope they find a way to be successful.

 Regards,
 

Tim Anderson
San Jacinto, CA



Edited 1 time(s). Last edit at 04/21/20 06:29 by sanjac-tim.

The "original" Caboose went from a fine store from which I would purchase BRASS models and kept an excellent on line inventory, to a place that couldn't even manage to fulfill pre-order plastic models.  Yes, PLASTIC pre-orders that were made right after the announcement date. Then I later heard (not surprisingly) they were on their death bed.

Now I'm hearing the new owners are on their death bed.  New owners that only purchased the "name" and inventory.

Yawn.

When we would go drag racing in Denver for the Mile High National, I would always stop at Caboose hobbies downtown. Purchased lots of brass from Don Zimmerman and got my complete DCC set up from  them as they were more helpful than any hobby shop in so cal. Couple years ago went to the new Caboose hobbies, walked around saw all the high prices and crappy inventory and thought then they werent going to make it. Hate to see them go but hte writing was on the wall.

Was able to visit the orignal store in 2001 was a great booming place with great customer service as had them ship things home for me. When they  were closing out there store called them about an item, the owner was the one who answere the phone great fellow very nice to deal with. Things change and hobby shops from my childhood are long gone for the most part. There is one glaring exception just north of Pasco WA who has a huge stock of trains all gauges. Part is storage under the full scale box car or two has been a while along with the orgianl building they were in. Now they have even bought some manufactures business think its PSC not sure but great to deal with.

As a former Denver resident, I had spent thousands of dollars at Caboose Hobbies, and it was my go to supplier even after I moved away from Denver. When the original CH closed, I was crushed. Then the announcement of a new "Caboose" appeared to spark interest and much fan fare. The opening of the new store was celebrated and publicized on the internet and even a few live broadcasts on social media, and I was hopeful the new leaner Caboose would thrive.

Fast forward to February 2020, and my first opportunity to visit the new location. I was looking for some HOn3 rolling stock, RTR or kit form, it did not matter which. I was disappointed to see rows of empty shelves and peg board. No kits, and a few sticks of Peco flex track was all they could offer. 

After seeing Caboose sponsor Ken Patterson's pod casts, and Ken's pilgrimages to Denver to hang out with Mr Ruble, and the fact that Caboose's add running on the KP podcast states they have everything you need for your model railroad, you can see why the business is failing. In fact, in one of Mr Rubles recent appearances on the KP podcast, he briefly mentions owing creditors and KP for advertising. The COVID-19 crisis will most likely be the final station stop for this Caboose.

A real shame for the model railroad community and the Denver area model railroad market. Denver once had several great model railroad stores, and now has none.



Edited 2 time(s). Last edit at 04/27/20 09:39 by KM-ML4000.

Disappointing when a hobby store asks for donations to stay in business.

I visited the old store when visiting my son and family over ten years and always looked forward to it with the wide array of stock including books and magazines. About three years ago we stopped at the new store and were very disappointed with service, stock and variety plus high prices. As I entered the store I walked by the full size caboose and thought: "That's putting the cart before the horse". Maybe the owner can now live in the caboose once he's out of business? Kind of reminds me of some shortlines I worked for where they painted up engines and a caboose before spending much on horrible track conditions. As an old engineer once said: "New paint does not make a locomotive pull better".

I miss the old hobby shops ...but with great on line service and better prices I get along just fine.

Exprail
 

I am surprised it took this long.   I imagine this will be the death blow. 

I mean, when I was there back in August, the store was empty.   Row upon row of empty shelf.  No Kadees.  No Evergreen.  No supplies.   Hell, there really was not even all that much there for a "Fire sale".  

Anyone need a DRGW Caboose?  

They have $406 so far.

https://www.gofundme.com/f/help-caboose-survive-the-pandemic-and-relaunch

Bruce

KM-ML4000 Wrote:
-------------------------------------------------------
> As a former Denver resident, I had spent thousands
> of dollars at Caboose Hobbies, and it was my go to
> supplier even after I moved away from Denver. When
> the original CH closed, I was crushed. Then the
> announcement of a new "Caboose" appeared to spark
> interest and much fan fare. The opening of the new
> store was celebrated and publicized on the
> internet and even a few live broadcasts on social
> media, and I was hopeful the new leaner Caboose
> would thrive.
>
> Fast forward to February 2020, and my first
> opportunity to visit the new location. I was
> looking for some HOn3 rolling stock, RTR or kit
> form, it did not matter which. I was disappointed
> to see rows of empty shelves and peg board. No
> kits, and a few sticks of Peco flex track was all
> they could offer. 
>
> After seeing Caboose sponsor Ken Patterson's pod
> casts, and Ken's pilgrimages to Denver to hang out
> with Mr Ruble, and the fact that KPs Caboose's add
> running on the KP podcast states they have
> everything you need for your model railroad, you
> can see why the business is failing. In fact, in
> one of Mr Rubles recent appearances on the KP
> podcast, he briefly mentions owing creditors and
> KP for advertising. The COVID-19 crisis will most
> likely be the final station stop for this
> Caboose.
>
> A real shame for the model railroad community and
> the Denver area model railroad market. Denver once
> had several great model railroad stores, and now
> has none.


Sponsoring an online show that was not that popular for a brick and mortar location was mistake #1.  That show can sell items but it is usually the small, neat items that are unique; thus the name What's Neat.  I do not think the over the top antics and salesman approach work for anything else.  Rumor has it he threw much of his money towards the business +overpaid for advertising & employees.  He had to sell his home and move into a much smaller place.  He is a nice guy with good intentions but it seemed he didn't have the business sense we thought he did with the sale of Marquette Rail.  But some stumble into money and don't really have any business sense, that eventually comes to light.  CSN

The wife got me a Caboose gift card earlier this year and i quickly redeemed it fearful i would lose out if they went under before I made it in!

As a Denver area native, Caboose Hobbies was an experience for a teen growing into the hobby. Yes, lots of older cranky types (i was young haha) but it was exceptionally well stocked 20+ years ago. As time went on you could see the changes slowly starting to happen and when they closed it was a sad moment, a chapter closed in a facet of life (I've had a number of those over the last 10 years, my kiddo had a rough time with ToysRUs but that's another conversation!). With the odd transition that happened I was excited to see if this new "Caboose" had any semblance of the old and it was obvious it didn't. Many comments have been made of experiences in the new shop and i don't want to sound like a broken record so I'll just say they were all correct.

During my recent visit i spent quite a bit of time chatting with one of the proprietors, an interesting guy who appeared to have good motives under the gruff appearance. I questioned some of their decision making in a tactful way and he had his answers. I honestly hoped they were just going through an evolution into what this new shop could be but obviously that doesn't appear to be the case sadly.

-Benjamin

Let's just hope the caboose finds a good home.

PHall Wrote:
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> Let's just hope the caboose finds a good home.

Well he could try to sell it again and maybe make back half of what he is asking for from people.

Caboose Hobbies, The Penn Central, UP 3985, Elvis, the dinosaurs.....nothing lives forever.   ×   

The guy that was the king of hobby shops in my area (actually had two in the same city at the same time) candidly told me that he could not make it on trains alone. He also had quite a stock of  RC aircraft, RC cars, etc. He has since passed away, but his son has taken over and they have a better location. Customer service is very good, and I willl pay retail for that. But he will offer discount on large purchases such as track, for example. He also carries tools and modeling supplies. His shop will order anything from Walthers or other distributors and absorb the shipping on the weekly order. I just pick it up and pay when it comes in. He does some internet.  I watched a guy come in and ask a lot of questions about features, operations and the price on drones. The owner was very knowledgable. He said thank you and left. I'll bet the guy ended up buying a drone on line, below list. Sad. Hopefully, after he gets it he won't have any problems. But if he had bought it from Phils, the owner would have got the problem resloved or given him his money back. The owner would proably have given him some tips on operating it out in the parking lot too. But I worry about the business model in the long run. I even wonder about the long term for Walthers.

Victor A. Baird
http://www.erstwhilepublications.com



Edited 3 time(s). Last edit at 04/21/20 17:06 by wabash2800.