[Old Crow]

Thought I would post an update on this issue. As some of you know, a small group of forum members banded together in an effort to pool resources to pursue Corgi, Hornby or whomever may be responsible for rectifying this token redemption fiasco. I wrote a formal letter to Michael Cookson, apparent CEO of Corgi-USA, Master Replicas and Corgi Intl and laid out our case. The letter was sent June 4. To date- no response.

I finally got around to calling the number for Master Replicas and Corgi-USA listed on SEC and Secretary of State filings (Michael Cookson c/o Master Replicas Inc., 201 North Civic Drive, #239, Walnut Creek, CA 94596, (925) 979-1500) just to try and rattle some cages. Using the company directory I got to his voice mail and left a message today. I also left a message with Customer Service (the voice mail message for this extension identifies someone named Carrie who will allegedly return a message) politely demanding a return call. I guess we will have to wait and see if anyone calls back.

I did a little checking online. The website for Corgi-USA now identifies the contact person as Steve Bonnem, Sales Manager, with Hornby America, Inc. in Fife, Washington, which appears to be an importer for Hornby. I will probably put together a letter and e-mail to him. Hornby has disavowed responsibility for the token redemption program, suggesting they did not acquire this liability from Corgi. I would like to get something in writing to confirm this.

Interestingly, I also ran across news of a letter Corgi received last week indicating its listing was being pulled from NASDAQ because of its noncompliance with the minimum bid share rule (for the prior 30 business days, the shares were trading at less than a buck- ouch!) StreetInsider.com - Corgi International Limited Announces Receipt of Letter From Nasdaq Regarding Noncompliance With Minimum Bid Price Rule

[hworth18]

Originally Posted by Old Crow

I did a little checking online. The website for Corgi-USA now identifies the contact person as Steve Bonnem, Sales Manager, with Hornby America, Inc. in Fife, Washington, which appears to be an importer for Hornby. I will probably put together a letter and e-mail to him. Hornby has disavowed responsibility for the token redemption program, suggesting they did not acquire this liability from Corgi. I would like to get something in writing to confirm this.

The problem with this statement is that when you buy a company, you get everything that comes with it, including its liabilities.

[Old Crow]

The problem with this statement is that when you buy a company, you get everything that comes with it, including its liabilities.

I wish that was the case but, unfortunately, it is not. An entity or individual can, in fact, negotiate to buy assets only or limit itself to certain liabilities.

These are all bargaining points in the transaction. Kind of like when a sports team tries to trade for a star player, the team giving up that player may try to require the other team to also take another player- usually a stiff with an inflated salary- as part of the deal.

Our "contract"- meaning our acceptance of the offer to provide a special redemption model if we buy enough other models- is with Corgi, not Hornby, and unless Hornby agreed to accept the liability as part of the purchase, it may not be on the hook. It is also possible no one involved in negotiations considered the redemption program as a liability or asset and we could end up with both sides saying the other is responsible.

[trex0770]

Thanks for the update and the dogged determination O.C.! Kinda bugs me with Hornsby's attitude....a bad way to start if you intend to tap this customer base at some point. They didn't even say "we'll see what we can do to resolve this issue". I know I'll steer away from Hornsby if I have to choose between something from them and another manufacturer.

[hworth18]

Originally Posted by Old Crow

I wish that was the case but, unfortunately, it is not. An entity or individual can, in fact, negotiate to buy assets only or limit itself to certain liabilities.

These are all bargaining points in the transaction. Kind of like when a sports team tries to trade for a star player, the team giving up that player may try to require the other team to also take another player- usually a stiff with an inflated salary- as part of the deal.

Our "contract"- meaning our acceptance of the offer to provide a special redemption model if we buy enough other models- is with Corgi, not Hornby, and unless Hornby agreed to accept the liability as part of the purchase, it may not be on the hook. It is also possible no one involved in negotiations considered the redemption program as a liability or asset and we could end up with both sides saying the other is responsible.

This is true, but someone is still responsible.. If it isn't the new owners, then I would think we can go back on the old owners.

[parsig9]

Thanks from me as well OC and we'll see.

This smacks of telling fans who buy tickets that the show is off and too bad. The problem is that though the purchasers may go to a show a year, I buy dozens of models. If Corgi/Hornby or whoever stick us they are doing it to 100s of their best customers. Heck, I was a club member on both sides of the Atlantic for years and with the exception of access to a few $70 club models, a crappy gold Mustang I hocked, and a '56 Chevy my kid destroyed for me,I got nada. This fake/jip-off token thing really

I still got proof and want my model.

Drew,
You are set to receive your Limited Edition Halifax. We will be shipping that out as soon as we get the shipment in here. Thank you in advance for your patience.

Thanks,

Matthew Harrell

Corgi USA
2/18/08

Did they know they were dumping the company when the told these tales or what?

[AVRO ARROW]

Hello All,

Just like many of you ,I also have been led down the garden path by Corgi / Hornby and do not like it at all. I was also promised a Limited Edition Halifax but have not seen one as of yet . As some of you have already stated , there are other manufacturers that would just love our dollar power. I know that since this trouble with Corgi started I have turned all my buying power toward Hobby Master , GMP and Eagles International all with great results .Until this is resolved in our favor I will continue to avoid buying any Corgi products and continue with the other 's that I have just mentioned .

Good luck to us all , and remember, that we as a group hold all the buying / dollar power against Corgi / Hornby.


AVRO ARROW

================================================== ================================================== ======

Keith,

Yes you are slated to receive a Special Edition Halifax, we have received your tokens and you’re good to go. We ourselves are waiting on the shipment of Halifaxes and as soon as we get them we will be passing them on to you.

Thanks,

Matthew Harrell
Corgi USA

[kabelace]

I have also received a similar letter, what I would like to know is, WERE are these silver Halifaxes. Some were manufactures, did they make 500 like they listed, did they ship them to Corgi US. Some got to the European market. Or did Corgi stop production and the letters/E mails were just a bunch of BS to keep collectors waiting while Corgi and Hornby were in negotiations

[dilligafocau]

Originally Posted by kabelace

I have also received a similar letter, what I would like to know is, WERE are these silver Halifaxes. Some were manufactures, did they make 500 like they listed, did they ship them to Corgi US. Some got to the European market. Or did Corgi stop production and the letters/E mails were just a bunch of BS to keep collectors waiting while Corgi and Hornby were in negotiations

Grim posted a photo of the Silver Halifax box over at DAF, it states "One of only 150 Aircraft Produced Worldwide"

[Old Crow]

I fully intend to keep pushing where I can with letters, e-mails, and calls. Unfortunately for us notoriously impatient die-cast collectors, this is the type of thing that may take a long time to get sorted out in light of Corgi's sale, rising costs, a crappy economy, etc. It is undoubtedly a low priority, in my opinion, compared to issues that Hornby, and whatever entity is left of Corgi that was not purchased by Hornby, face in trying to chart a course for the future.

No matter what we do, I just do not see the blood pressure of anyone at Hornby or Corgi rising much over this at the present time since they have to know there is not much we can practically do without investing time and real money, and I doubt any governmental entity will get hot and bothered about this anytime soon.

Frankly, I am still not 100% convinced there is actual, legally enforceable liability, for a couple reasons. First, we would likely have to overcome the argument that we got value for our invested money (i.e., die-cast models at regular die-cast prices). Second, I worry there is some fine print somewhere I have not yet seen that gives some escape to Corgi (you know, something like "Corgi reserves the right to cancel this program at any time").

That said, I do think our odds are still strong enough to push the issue further. One thing I want to do that I have not yet had time for is some research about these types of scenarios and whether there are established legal principles that apply to something like this. If I can find some appropriate law or precedent I will do another letter addressing the legal issues. I just have to find some time to do some uncompensated legal research.

In the meantime, as so many have pointed out, our best leverage is our spending power, and letting it be known loud and clear we are going to withhold that money until there is some justice. I think regular e-mails to Hornby emphasizing this fact, once we have some confirmation that Hornby will be continuing the AA line, would help to potentially persuade Hornby to do something about this situation if Corgi does not. In addition, if anyone has any paper that discusses the token redemption program, like catalogues, flyers, inserts, dealer promotional materials, posters, etc., I would be interested in anything that might possibly be construed as attempting to give Corgi some out on any aspect of the program.