Drones Shoot Down Model Rockets as Bankrupt Hobbico Seeks Buyer

Hobbico, Inc., a toy-rocket and airplane maker that struggled to adapt to the drone market, told a bankruptcy judge Jan. 11 that it will try to sell itself while under court protection.

In its first bankruptcy court hearing, the employee-owned company won temporary approval to borrow a limited amount money to keep operating, while it organizes an auction. Later this month Hobbico will ask the judge in Wilmington, Delaware, for final approval of a $45 million revolving line of credit and a $26.9 million term loan.

After an attempt to sell itself failed in November, Hobbico decided to file for ...