For the uninitiated, the radio-controlled hobby industry seems about as risky as slot car racing after lunch. But if you’ve been anywhere near a model airplane meet or RC crawler group, you’ve probably heard this one: “Hey, is Horizon Hobby going bust?” The rumor has been zipping through Facebook groups and garages like a kid with a fresh battery. It’s a reasonable question — especially when your friend’s replacement servo never arrived by Tuesday, or someone posts about a warranty snag that’s dragging into next month.
Here’s the straight talk: There’s no sign, signal, or SEC filing to suggest Horizon Hobby is about to pull up stakes and disappear. In fact, by one count, their office lights were still burning bright well into August 2025. Our curiosity isn’t just academic—when a business this big sneezes, nearly everyone who flies, drives, or sails a radio-controlled craft catches a cold. So, yes, let’s unpack why people are still asking.
Background: Horizon Hobby’s Unlikely Journey to the Top Table
To set the scene: Horizon Hobby isn’t some plucky upstart running a parts shop out of a storage unit. Founded back in 1985 in Illinois, Horizon spent decades hustling for North American shelf space. By the late 2000s, they were slinging RC planes, cars, drones, and all sorts of bits and bobs in big-box stores and specialty hobby shops alike. Their name means something, especially to anyone with more super glue than skin oil on their fingers.
But things got especially interesting in 2018, when Hobbico—once Horizon’s fiercest rival—crashed into bankruptcy court. Horizon didn’t just watch from the stands. They showed up at the asset sale with a checkbook. The final tally: Horizon snagged a pile of prized brands and IP for ~$18.8 million, including cult favorites like Axial, Arrma, and the e-flite series. That deal was a market-shaking move; Horizon’s catalog ballooned overnight, and their grip on the RC world tightened.
Is Horizon Hobby Still Running in 2025? Evidence from the Front Lines
For starters, there’s a massive difference between “has problems” and “is out of business.” The tidiest evidence that Horizon Hobby is still humming? Just ask the swath of customers placing orders, complaining about shipping, and—crucially—getting refunds, replacements, and support. The Better Business Bureau, not known for inflating anyone’s good news, lists Horizon as active in 2025, with customer complaints and responses logged as recently as May.
That matters. A company on its way out the door doesn’t bother chasing down returns or responding to warranty tickets. Horizon’s official website remains live and (arguably) easier to browse than most of its competitors. Their customer support page is open for business, with phone and chat reps fielding everything from parts requests to “my dog ate the charging cable” stories. Recent posts on Reddit and RCGroups show users both griping and, sometimes, begrudgingly praising the speed of recent order resolutions.
Brand presence? Still growing. Horizon controls an almost comically broad chunk of the RC pie—covering planes, sailboats, cars, drones, batteries, tools, and chargers. You’ll still find new arrivals under their Bald Eagle-heavy branding on the shelves at big names like HobbyTown USA, as well as everywhere from Tower Hobbies to Amazon. Their social media accounts show new product launches and livestream events as late as this summer. If this is the quiet before a collapse, it’s a noisy one.
Customers Are Worried — But the Real Issues Are About Service, Not Survival
Let’s not sugarcoat it: customers are frustrated. A scan of recent BBB and Trustpilot reviews includes plenty of heat about missed deliveries, long wait times on replacement parts, and warranty claims that seem to linger in customer service limbo. “They shipped my ESC to the wrong state—twice!” as one especially furious reviewer put it.
This has led to some local panic, especially among longtime modelers. But complaints about efficiency don’t necessarily spell doom. In a sense, they’re almost a badge of scale. If you handle thousands of orders a month, a handful will inevitably go sideways—even if you do everything mostly right.
What’s changing is the temperature of customer patience. RC buyers are tinkerers, and tinkerers expect clear communication. If that slips, it feeds swirling speculation. But so far, bad service stories aren’t adding up to existential crisis. Instead, they’re symptoms of a company that’s scaling, sometimes awkwardly, but hasn’t lost the knack for selling or fixing things when pressed.
Rumors: Why Do People Still Think Horizon Hobby Is in Trouble?
The biggest reason? The ghost of Hobbico still haunts this corner of the internet. When Hobbico collapsed in 2018, confusion swirled: “Who went out of business? Horizon or Hobbico?” Old-timers remember the bankruptcy headlines. But in that story, Horizon played the shark—not the fish. They were a buyer at the auction block, not the ones getting sold off.
Even now, Google is littered with outdated forum posts and “RC hobby industry obituaries” from the Hobbico collapse. Every time shipping backlogs hit or a popular item is out of stock, people revisit those stories. But there’s a catch: in 2025, Horizon isn’t posting bankruptcy filings, laying off entire divisions, or shuttering warehouses. Their business licenses are current; their warehouse footprint actually seems, by outside observation, to be expanding.
Rumors stick because order delays and warranty headaches are, well, annoying. But ask the big questions—“Is the website dead? Are their stores closing?” No. Horizon Hobby is still there every time someone forgets a propeller shaft or wants to upgrade their short course truck. The connection to Hobbico’s demise creates echoes, but echoes don’t topple companies.
The RC Industry: Competitive, Weird, and Not for the Faint of Heart
A quick sidebar—because the hobby industry is a curious beast. This isn’t like ordering widgets by the container-load from Shenzhen. Margins can be thin, passion runs hot, and the customer base memorizes their favorite company’s phone support hours like a butcher memorizes beef cuts. Dealers and retailers need a steady hand at the wheel.
Horizon Hobby’s scale and product diversity help buffer against sharp downturns. Drones get regulated? Maybe RC crawlers pick up the slack that quarter. If foam airplane sales slow, resin boats might keep the lights on. It’s a balancing act—one that requires discipline to pull off in a rollercoaster industry.
The Verdict: No, Horizon Hobby Isn’t Going Out of Business
So, where does the spatula hit the pan? For all the noise and nervous speculation, Horizon Hobby stands firmly in business as of summer 2025. Their not-inconsiderable catalog keeps expanding, customer support lines keep ringing, and no credible records show the specter of bankruptcy.
Order issues? Yes, they happen—and in this business, a two-week delay feels like eternity when you’re mid-build. But missed shipments and warranty disputes are the growing pains of a leading player, not the death throes. If your neighbor says “I heard Horizon is folding,” you can reply: “No, they’re still shipping batteries and taking my calls—sometimes too many calls.”
For a snapshot of small-business economics (and a window into how niche giants weather market storms), you’ll get a clearer view from business research portals such as Blue Line Biz. They track not just the headlines, but the state of operational activity across dozens of quirky industries. That’s valuable if you want more than internet hearsay.
Want to Keep Tabs? Where to Find Accurate Info
If you’re anxious about a pending order—or just want to gauge whether your hobby dollars are at risk—there are a few sources worth bookmarking. The company’s official site posts service updates, recalls, and new product drops. Review the BBB listing for real-time status and complaint reports. If bad news breaks, industry news pages and business registries will catch it.
Being a business fan these days means keeping one skeptical eye on rumormongers and another on the company’s actual output. If Horizon Hobby ever does hit the skids, you’ll see real signs—website closures, media statements, sudden product delistings—weeks before wild Reddit rumors come true.
In the End: Don’t Panic, Just Watch Closely
So, is Horizon Hobby going out of business? Barring something extraordinary—a comet strike, a global glue shortage—don’t bet your transmitter on it. Their market moves in 2018 insulated them from some of the industry’s choppiest waters, and 2025 shows a company sweating the details (sometimes awkwardly) rather than throwing in the towel.
If you’re waiting for a part, nudge customer service (gently). If you’re researching market health, trust the data. For now, Horizon Hobby is still building, shipping, supporting, and—despite the rumors—sticking around for the next chapter.
Stay curious, build smart, and keep the antennas up. If something truly seismic happens, you’ll hear about it from sources who deal in facts, not fear.
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