KR Models go into liquidation

KR Models have today issued a ‘statement’ confirming what I have believed was going to happen for sometime that they have officially gone in to Liquidation.

I will not copy the ‘statement’ but it can be read here and it essentially blames everything and everyone but themselves.

The reasons for the demise of KR Models are: poor business management, poor / little research, poor project management, inability to accept constructive criticism/ or offered assistance, poor communications, poor quality control, not understanding the financial risks involved especially when in this business model case it is the factory’s that are funding the development costs until production or the willingness to believe it’s everyone else’s fault but their own!

It is unfortunate for many reasons; not only for the business itself but also likely losses to pre-paying customers (hopefully via Credit Card Section 75, highlighting the date of liquidation as the starting point of the failure to deliver rather than the pre-payment date) the UK fulfilment distribution company that has remaining unsold stock, and also to factories (some of which I both work and have a good personal relationship with) who as it stands have been financially hit.
Maybe (and I am aware of conversations being held. I had also been approached by a couple of different parties) some tooling can / will be purchased/ salvaged by others (hopefully, and I recommend by dealing direct with the factory, who are still the owners of the tooling by default), although in the case of some models, if you wanted that model you really would not start with that tooling…

All in all not a great story for the industry, but it is still a great hobby, generally good for one’s own creativity and mental health; with some good manufacturers and most importantly fantastic model shops out there that can provide ALL your modelling needs.

5 thoughts on “KR Models go into liquidation

  1. Sadly we are one of possibly many who paid up front. We have lot £370, which we will not get back as we don’t use credit cards and was paid for on debit card. I hope we get to hear who the liquidators are so we can add our names to the long list of creditors, as we are over 75 we are unlikely to ever receive anything. KR were the only company who offered pay up in front, perhaps now we see why, although our previous models arrived well, so we were lucky then.

    1. I am in the same position! My bank, when they cancelled my credit card as they said I didn’t use it enough, told my my debit card had the same security as a credit card! We will see! Plus I think I used PayPal for the payments, so I will have to check with them. I contacted KR several times about late delivery of the Shay loco, and was given reasons but never offered a refund. I should have been more insistent. Very poor management!

  2. If I recall both me and your good self (and no doubt others) all offered help with getting the livery (and everything else) correct on Leader. I contacted them when the first livery plan layouts were released and was told that it was all ‘in hand’ and a specialist was looking into it. Many years later, the Leader arrived looking exactly the same as the side profile plan I commented on. In fact, I think the imaginary liveries are the most accurate ones they put out.

    The Fell too is interesting in their commentary about ‘compromises’ the problem is they never told those ordering one that they had drifted from an accurate model to a compromised one. Only showing each livery in official photos from one side only. It might as well have been black one side and green the other.

    I clawed my outstanding £800 of orders back about 2 years ago as I assumed this was the likely destination they were heading towards. This doesn’t include the £250 odd I paid in advance for a DCC sound Fell and never received it, even after release, as my order slipped off their radar.

    A shame to lose a manufacturer yes, but the evidence speaks for itself.

    Tah

  3. Graham et al – in terms of the main issues on KR Models Ltd rendition of the 1958 to 1965 liveried 4DD units readers of this blog may find the following of interest. I’ve ignored some issues such as the roof vents.

    1. The typeface used for coach numbers is incorrect. It should be Gill Sans Medium not Rail Alphabet

    2. The typeface is the incorrect colour; it should be yellow (not white).

    3. The coach numbers are (mostly) in the wrong places – the motorcoaches have them at both ends while the trailer coaches have them on the left-hand end. From 1951-on all should be on the right-hand side.

    4. The typeface, colour (etc) is similar incorrect for ‘Guard’, ‘Private’ and ‘Load 1 ton evenly distributed’.

    5. The models are equipped with post-1965 air-horns from when these units were outshopped with yellow warning panels at Eastleigh.

    6. The models have an erroneous black surround to the headcode panel.

    7. The back-to-back dimensions of the wheelsets varies from 14.33 mm to 14.44 mm leading them to derail on finescale proprietary turnouts. As split axles are employed no adjustment is possible and replacement with other manufacturers wheelsets cannot be undertaken.

    8. A Trailing Second examined had a noticeable wobble when in motion.

    9. The models are equipped with bright lighting which does appear to have any mechanism for isolating these (trains are not driven with interior cab lights on).

    10. The model’s colour is not a reasonable rendition of the BR(S) Green livery. There was even an image of a (correct) BR(S) Green unit contained within the model’s enclosed handbook.
    KR Models also produced the model in its 1965 to 1968 (small yellow panel), 1968 to 1970 (full yellow end) and 1970 to 1971 (BR blue livery) guises with (it appears) most of the defects present on these.

    Whether the moulds become available and become a commercially viable proposition to rectify these faults (including the split axles) remains to be seen….

    1. Thanks Colin, I would also add that the relationship between the front drivers windows and side cab windows is also wrong, and I not convinced that the overall end / roof / cantrail curve profile is correct either!

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