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WW1 Aircraft Modeling => What's New => Topic started by: Dave W on May 16, 2020, 09:16:20 AM

Title: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dave W on May 16, 2020, 09:16:20 AM
Inside Wingnut Wings – what went wrong within the dream model company?

By Dave Wilson

On Sunday March 22 the staff at Wingnut Wings’ office in Wellington, NZ, received a phone call telling them not to go to into work the following day. They did not know it then but their jobs had just evaporated.

New Zealand’s Prime Minister was implementing a nationwide lockdown to combat the global coronavirus pandemic and the eight staff at Wingnuts’ Miramar office assumed they would be working from home.

A few days later they knew the truth. Staff received a phone call followed by an email from Wingnut Group Chief Executive Officer Clare Olssen outlining a plan to close down the business permanently and dispose of the assets. Staff were allowed to submit their feedback.

A week later, their views and business rescue ideas submitted, the Wingnut staff group were stunned when the employers advised staff they were all redundant. They were now unemployed. All model kit projects in development would be abandoned. All assets of the company would be sold/ disposed of. Wingnut Wings was closed. Permanently.

More than a month on, several of the former staff, still in shock and “gutted” by the speed to permanently close and dispose of the business and a claimed total lack of communications from their senior management, are trying to get their heads around what went wrong, and why?

Several of the former staff have shared their thoughts exclusively with the WW1 aircraft models Forum, speaking on condition of anonymity due to non-disclosure clauses in the employment contracts.

Readers who assume this article is “fake news” because it does not feature an official statement from the management of Wingnut Wings or WingNut Films, and does not identify the former staff by name, can be assured the comments featured in this article come directly from inside the highly secretive surroundings of the Wingnut Wings office.

Wingnuts’ former General Manager Richard Alexander was approached for comment on this article but has declined to comment on the closure of the business, therefore he does not feature in this article.

Since its surprise launch in April 2009 Wingnut Wings re-defined the global plastic model market with its unique combination of Hollywood superstar director Sir Peter Jackson creating a niche business to produce the world’s finest 1/32 scale WW1 aircraft models. From WingNut Films, he created Wingnut Wings.

(https://i.postimg.cc/j2ZJJP2N/SPJ.jpg)
Sir Peter Jackson with a Wingnuts Pfalz D.IIIa

Kits were designed by digital modellers in Wellington but tooled in China and Korea. The company was innovative and drew on expertise around the world. For example the decals were designed in Wellington but printed in Italy.

In its 11 years Wingnut Wings created a catalogue of unique scale models of WW1 aircraft, some famous, others obscure, and re-energised a faltering model aircraft hobby sector. It drew modellers from the mainstream modelling world to make WW1 subjects popular with thousands of mainstream modellers who would otherwise shy away from the era they regarded, at best, as just Snoopy vs the Red Baron.

The glory days of Wingnuts have been well catalogued, but the public rarely got a glimpse behind the veil of secrecy.
As one observer has summarised – Wingnuts was not a commercial venture and was not ostensibly designed to be market or profit-driven. WnW produced the models that its owner wanted. He owned the business and chose what was produced. The customers enjoyed the ride. With luck, their purchases would fund future projects.

Observers think that unique business structure may have been an underlying weakness to the Wingnut dream. It relied on the whims of its wealthy benefactor and produced more and more expensive and esoteric subjects that did not generate enough revenue to offset the high costs of developing and producing high detail large scale model kits for a very niche world market.

There’s a perception that Wingnuts closed solely due to the coronavirus lockdowns in New Zealand. Former staff say this is not so. The Covid-19 pandemic was a useful trigger for a plan underway before then to restructure the Wingnuts operation.

While one staff member says the coronavirus was cited as the reason this person’s services would not be required in the foreseeable future, others knew different.

“We were told it (the closure reason) was financial, and the owners didn't want to fund it anymore. It was known by staff, and some were in the know for a while,” says one former staff member.

Another remembers the financial issues dated back well before the closure.

“I don’t know how bad it was but there was a huge push of selling everything we could. One staff member said we were in the red and the new Chief Executive Officer and Chief Financial Officer would look at us after the TVAL issues were dealt with,” he says.

This refers to the former chief of Sir Peter Jackson’s aircraft manufacturing company The Vintage Aviator, Gene DeMarco, who was imprisoned after a high profile trial last year where he was found guilty of fraud charges involving the sale of TVAL aircraft.

Staff say power players within the WingNut group viewed TVAL as a financial drain and a management changeover at the WingNut group changed the dynamic of the place.

“After the new management came into power, Wingnuts didn’t feel like the Wingnut of previous years,” says one. “It got very corporate and impersonal”.

One former staff member recalls discussions with a colleague who questioned the wisdom of having the two Lancaster and Handley Page bomber projects in production at the same time, given the enormous costs involved in the parallel projects.

Questions were raised at the decision to produce multiple version boxings of esoteric subjects like the Gotha G.1 and UWD and the Handley Page O/100 and O/400 kits. Some staff argued that the strategy did not work with the two Felixstowe flying boat kits, as most customers did not want to buy two large and expensive models of the same subject.

While the Albatros and Fokker D.VII kits were Wingnuts’ biggest sellers, projects like the DFWs and Gothas did not perform well while other big ticket kits such as the Felixstowes started well then slumped. Wingnuts seemed to be fixated on two seater subjects and biased against French aircraft. The place became a sales rollercoaster.

After the Sunday night bombshell call, staff waited for days for some update on what would happen next.

“No one contacted us during that week. We asked about working remotely, but no answer was received. We were contacted around a week later and received a document regarding changes to the company,” a staff member recalls.

That document was an email from WingNut Group Chief Executive Officer Clare Olssen, outlining radical changes to the Wingnut Wings structure.

In it she wrote that with production at TVAL discontinued, and with other matters, a major restructure of Wingnuts would happen.

“It is now proposed that there be greater focus on the strategic management of Wingnut Wings assets and where appropriate, their disposal to realise best/ fair value. Responsibility for and administration of the strategic management of Wingnut Wings assets, including existing stock, be moved under the CFO and Assistant Accountant positions within the WingNut Group Finance function,” Ms Olssen wrote. 

Further, the General Manager position of Wingnut Wings would be disestablished with the responsibilities absorbed into the Wingnut Group finance function with management of residual business relationships being picked up by the Wingnut Group CEO.

Staff grasped that the document spelled the end of Wingnut Wings as a standalone entity. They were given several days to make submissions on the proposed changes.

“We provided feedback, all of us did individually and as a group, this included ideas to save the company and inject some quick cash in the account and ways we could try to release some of the kits that were ready or close to being released.

“We were pretty disappointed with the document presented by management and the owners’ response to our proposals as we believe we never had a chance and their minds were already made up,” a staff member says.

When the axe fell it was wielded by Wingnut CEO Clare Olssen.

“Clare Olssen, advised us. Sir Peter Jackson and senior management never contacted staff in any form either before, during or since our employment ceased,” a former staff member recalls.

Since the shock news, hobby forums have been awash with reports and counter claims on whether Wingnuts is just hibernating due to Covid-19 or gone forever. The management has maintained a solid silence with no official comments made. Approaches from the Forum for comment from the management and Sir Peter Jackson personally have drawn no response.

So could the place just be in hibernation?

“No, not at all. Clare stated that Wingnut Wings is permanently closed and assets are to be sold/disposed of,” one of the redundant staff confirms.

Staff feel the timing of their redundancies was horrible.

“Due to the pandemic many places are not hiring at the moment and the situation does not make it easy for us to seek new employment” one says.
 
The closure has also focused renewed attention on the role Sir Peter Jackson played at Wingnuts. He created it and funded it but the perception that he was always closely involved with the kits is a myth, those who were there say.

“We never saw Peter in the office. He had little to no involvement in the day to day running of Wingnut Wings. Maybe he only suggested the subjects of the kits that were produced. Richard Alexander provided a weekly report to Peter, but we were never allowed to know what was in those reports”.
 
Another recalls: “At first Peter maybe had a bit more to do with the day to day running of things, then he just got too busy and couldn’t find the time for us.

“That was why a lot of things never got released like the Figures and the Special Edition kits. I think he still had some say in the subjects that were produced.”

Wingnuts also had a full slate of future subjects lined up for development. These now form part of the assets up for disposal but observers note there’s no guarantee the Wingnuts assets will be sold to any rival model kit companies.

The full reasons for Wingnuts’ sudden and unexpected closure may emerge one day or maybe not. It was a privately owned unique entity whose only directors were Sir Peter Jackson and his wife Dame Fran Walsh.

When the company closed it was on the verge of releasing much anticipated 1/32 scale kits of the Fokker Dr.1 and F.1, the Handley Page O/100 and O/400 bombers and 1/32 scale models of the Avro Lancaster and Dam Buster variant. A Hansa Brandenburg D.1 Starstrutter was also in advanced development.

(https://i.postimg.cc/TYknwLSf/0400-4.jpg)
So close...Render of the abandoned Wingnuts Handley Page O/400 kit

Development of these and many other projects in the pipeline were cancelled. Mixed reports state all assets, stock, tooling (the moulds) are to be disposed of but no deals have been announced. None are known to be underway, fueling speculation the Wingnut moulds may just vanish into a warehouse storage facility and never be reissued.

Fans hold a fond hope Wingnuts may be revived in better times. If this happened would the unique team responsible for designing and producing its catalogue of world class model kits be willing to return?

“There would have to be many changes before I consider returning if Wingnut Wings was to reopen,” says one.

“There would have to be changes at all levels. End of the day, this business was treated as someone's hobby and wasn't run like a business. Wingnut Wings had the potential to make a profit,” this person says.

“There would have to be changes,” says another. “A business plan and someone running it that treats it like a business and not a hobby/side business and with accountability”.

There’s a sense of irony in the fact that Wingnuts, which teased its global fan base of loyal customers with obsessive secrecy, should suddenly end without any official statement or explanation to its customers.

While Sir Peter Jackson has offered no comment on why Wingnuts has been closed, a comment he made to me in 2010 for a feature article I wrote then about the company is perhaps noteworthy.

“I’m determined to keep the hobby aspect going, which is why we are not driven by market forces and profit – it would then become something I don’t want it to be” he said at the time.


(https://i.postimg.cc/B6fDWJR8/Richard-Alexander-and-Peter-Jackson-of-Wingnut-Wings.jpg)
Sir Peter Jackson and Richard Alexander in a 2010 Wingnuts publicity photo
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Kreston on May 16, 2020, 10:34:12 AM
Very enlightening article.  Thank you for the insight.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: seiran01 on May 16, 2020, 10:55:26 AM
Good summary Dave, thanks for putting this together.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: sagamore on May 16, 2020, 11:15:56 AM
Thank you for this article.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Eric Armstrong on May 16, 2020, 11:30:09 AM
Probably the closest thing we will come to that approaches telling the real story about WNW, its apparent demise and the rather bleak prospects going forward.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: smperry on May 16, 2020, 11:55:17 AM
Dave
Thank you for the time and effort put into this article. I am the son and stepson of newspaper editors and I know a proper bit of journalism when i read it. You did a good job of reporting, something becoming vanishingly rare these days.

WnW was never out to make a profit like most manufacturers of plastic model kits. They chose models, too many of which were incredibly expensive to produce, based on reasons other than what the market wanted. Well, they didn't make a profit and most likely did the opposite. So it totally baffles me why people seem shocked that they went out of business. I'm shocked they hung around as long as they did. Hopefully they really ran up some expenses and will be forced to sell their existing molds and files as I would hate to see all that stuff destroyed.

WnW showed the world how to make a truly fine kit. Fortunately for us modelers there are several folks out there who learned the lesson and are producing high quality kits of their own design. Additionally WnW sparked a quantum leap in aftermarket parts and decal quality and we will benefit from that for years to come.

WnW has come and gone, but the hobby and the industry have been forever changed by them and mostly for the better.
sp

Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Pup7309 on May 16, 2020, 12:44:12 PM
Echoing the previous comments, great article. I feel for the employees. They deserved better. But what a legacy.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: fruibal on May 16, 2020, 12:58:08 PM
These are breakthrough news, thanks to Dave W. for the insight. Now we know the truth behind the closure of WNW. Such a pity that many brilliant employees were let go and all this time the production ideas were centralized at the whims of PJ. We hope that some major company with real business vision picks up the WWI genre with the same exceptional quality as WNW. We as WWI modelers must support other businesses that are still operative and some others that are emerging in this WWI  market niche. For sure someday this beautiful hobby will come back stronger with the same standard left by the legacy of WNW   
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: GazzaS on May 16, 2020, 02:35:54 PM
Thank you for the informative article, Dave!
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Jeff K on May 16, 2020, 03:10:59 PM
well done, clarifies both what is known and what may never be.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: MarkyMark62 on May 16, 2020, 03:34:29 PM
Thanks Dave. They had to close just I stated getting the WW1 bug. Managed to bag a few before the prices went up and treated myself to a couple of biggies before they become unobtainable due to cost.
Best wishes, Mark.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Vickers on May 16, 2020, 03:37:11 PM
Thanks for delving deep and shedding more light on the closure of WNW, Dave.

WNW catalyzed a renaissance for the entire hobby, but the manner of its demise is an absolute shame.

From their initial launch, it was clear that PJ did not expect to make a profit- even offering free international shipping until just a few years ago. I doubt whether PJ had much influence over the manner in which his TVAL/WNW ventures and everyone involved have been treated by this new management staff. It seems obvious that none of those people share his inspiration and probably wouldn't know a Great War aircraft if one plunged OOC straight down into their designer kitchen. As clandestine as the whole matter has been, it also doesn't surprise me that this small army of skilled craftsmen has been unceremoniously kicked to the curb without so much as a 30-day notice.

As much as I'd love to see at least the Fokker Triplane projects transferred into capable hands, I suspect that this Clare person and her squad will use the same scorched Earth policy on the assets that they used on the now-former WNW employees.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: gbrivio on May 16, 2020, 04:14:16 PM

[...] You did a good job of reporting, something becoming vanishingly rare these days.

[...]WnW has come and gone, but the hobby and the industry have been forever changed by them and mostly for the better.
sp
[/quote]

Agree all, these two points really describe both the insight and the essence of WNW contribution to the hobby world. Thank you Dave.
Ciao
Giuseppe
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: rhwinter on May 16, 2020, 04:26:56 PM
Good article on a sad topic. Thank you, Dave!
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Borsos on May 16, 2020, 04:50:20 PM
Great journalism, thank you for the great work, Dave.

I agree in all aspects with the praise the WNW kits get and actually deserve. And it makes me very angry how the people who created these great kits were treatened by the management and owner. That’s just repelling. I keep my fingers crossed for all the former employees to find a new job soon where their interests and needs count. One thing is to leave all the customers in the dark regarding the future of the company. The other thing is treating the own employees in the same way, people who depend on the company and have to feed families. I regret the end of WNW, but I despise the actual way it did. Thank you Dave for making this so clear.

Andreas
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Monty on May 16, 2020, 05:45:08 PM
Thanks for that, Dave! It very much confirms what I suspected. No mention of the background tax woes of the empire and the influence that has (and has had) on decisions now, but as the decision making rests with the bean-counters it must play a role! I wonder if Sir Peter also didn't just loose interest in his hobby? And just decide to can it... I bet his stash will last a lifetime or two! I'm very concerned about the WNW team, they are in a tough place in tough times. I don't see them finding equivalent employment soon. The only bit of good news is the statement by said bean-counters that "..assets .. their disposal to realise best/fair value...". Those great big hunks of metal that are the moulds are a massive drain on resources, their storage must be paid for, it's better to let them go... They are housed by injection moulding companies that have many customers... it's obvious companies involved in the tooling had, at least done good kits before... therefore the chance these moulds may be used (in one form or another) by another entity is likely... I could happily believe that TrumpiBoss could be involved (and they wouldn't do a bad job of re-releases..). But Sir Peter may have little say at present what happens to his hobby, the money may be the final determinant... And we won't see a new NZ model company again in the next few years... Regards, Marc.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: macsporran on May 16, 2020, 06:07:39 PM
Excellent article, Dave, thank you for explaining it all so clearly.
One thing unmentioned though is the allegation that they had mis-used government subsidies intended for the film industries on model and aircraft companies, causing much embarrassment to PJ's group.
Do you think this maybe helps explain the "why" as opposed to "what" happened re the sudden closure?
Thanks again.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dave W on May 16, 2020, 06:30:58 PM
Sandy

I did not refer to the rumour regarding the alleged use of taxpayer subsidies in NZ because it is a rumour and I did not have any evidence to confirm if it was true. The article stuck to provable facts and comment from former staff. The NZ Herald has published an article claiming that Sir Peter Jackson's Weta group has received $41m a year in NZ government subsidies to support film production.

Issues around how that funding has allegedly been used and which parts of the Weta group might have benefited from it do not feature in the Wingnuts article.

cheers

Dave W
Gold Coast
Australia
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: macsporran on May 16, 2020, 06:44:07 PM
Thanks for the reply, Dave. It really is a good article and I'd have thought some of the mainstream press might be interested in publishing it if you were so minded.
I just wish they'd made a few more market-friendly single seat scouts and less of the huge vanity projects like the UWD. Might be in a happier financial place now.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: RLWP on May 16, 2020, 06:54:23 PM
More praise for this excellent piece of journalism from me, Dave. Thank you

Richard
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: RLWP on May 16, 2020, 06:59:43 PM
Another thing - am I right in thinking Des had a model/models in the WNW museum?

Richard
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: rhwinter on May 16, 2020, 07:05:52 PM
Another thing - am I right in thinking Des had a model/models in the WNW museum?

Richard

Yes! I was wondering what might happen to them, too!
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dekenba1 on May 16, 2020, 07:24:18 PM
Thanks Dave, excellent article.

Perversely, this article suggests - to me at least - that the WNW kits will definitely see the light of day again.

Why?

Because the company is being shut down because it was a money pit. It was all about the money.

The WNW assets - moulds, IP, modelling, WIP, stock, etc - are worth some monetary amount. As it's a very, very small market, we don't really know the value. But Revells assets were purchased for $3.9m, and that encompases a pretty large & diverse portfolio. Ultimately, it will depend upon the business plan any purchaser will operate. Whilst the moulding & tooling costs are known pretty well, the sales figures are altogether another thing, although the fact that so many WNW kits are "sold out", allied to the strong prices shown on EBay (e.g. £300 for SE.5a), would suggest there is a market for at least some of the kits. The larger, twin engined kits may not see the light of day again as demand was low, but the single seaters & most 2 seaters sold well.

A valuable asset is not going to be destroyed or left to gather dust when it could contribute to the whole reason WNW was shut - produce money. A sale will reduce PJ's losses, which is the whole point of shutting WNW down.

Therefore, I fully expect the assets will be sold off, sooner rather than later.

However, the caveat here is that PJ is acting logically and is guided by market forces. If he throws his toys out of the pram, the moulds could remain in a warehouse for years.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: RLWP on May 16, 2020, 07:34:34 PM

The WNW assets - moulds, IP, modelling, WIP, stock, etc - are worth some monetary amount. As it's a very, very small market, we don't really know the value

Reading Dave's article, I can't see a lot of financial or managerial logic in the company which leads to the question in what you say in the bit I quoted

How many more buyers are there for two-seater Axis planes? Or for large four engine bombers?

The kits with legs are going to be the single seaters, the expensive moulds are those big bombers. If you had to buy the lot in one go, I'd suggest the value of the moulds for the big kits would kill the deal

And that's assuming WNW own the moulds - if they are sitting in a factory in China that may not be guaranteed. It wouldn't be unusual to go into a joint venture with a moulding company over the costs of the moulds

As usual, more questions than answers

Richard
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dave W on May 16, 2020, 07:47:17 PM
Richard

I have made a small edit to your latest post. We must all be mindful that websites such as this are not immune to legal actions for defamation. As a precaution I have removed a sentence which could compromise us.

Folks, please be careful with any speculation in this thread. I would rather spend my meagre savings on more model kits than fund holidays for defamation lawyers.

Regarding the current home of Des' models. They were donated to the 1914-1918 Aviation Heritage Trust in NZ and Dave Johnson, then with  Wingnut Wings, flew to Australia to pack them and take them to NZ. I believe they are at present housed at the TVAL offices in Wellington.

Dave W
Gold Coast
Australia
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Jeff K on May 16, 2020, 07:49:54 PM
this is speculation, but the poor box office showing of Mortal Engines can't have helped Sir PJ's financial state.

it does appear from the article that WNW has been handed over entirely to the bean counters. the response from the sales@wingnutwings was also from an assistant accountant.

that said i'ts not impossible that Sir PJ would do something irrational like hang on to the molds and hope for better times. i'm sure i'm not the only one with no intention to sell my hoard in spite of Gotha G.IVs going for US$600 on ebay... so the psychology of it would be easy to understand, at least.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: RLWP on May 16, 2020, 07:52:29 PM
Richard

I have made a small edit to your latest post. We must all be mindful that websites such as this are not immune to legal actions for defamation. As a precaution I have removed a sentence which could compromise us.

No problem, Dave - I understand your point and I suspect you understand mine too

Richard
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: lone modeller on May 16, 2020, 08:57:02 PM
You will all know that I am not a kit builder, but I have many friends and know of many others who are, and I am therefore very disappointed on their/your behalf that WNW is no more. I am even more disappointed for the very highly skilled and dedicated staff at WNW who have, to put it bluntly, been shafted by bean counters. However, any company has to be able to make money to survive, and if WNW did not make money then the future was bleak indeed. However the way in which the staff were treated reflects all too well modern management attitudes - "I'm all right Jack and the devil take the hindmost."

Thank you Dave for a first class piece of journalism - thoroughly researched, factual, precise and without bias - a rare event at any time in journalism, but seemingly even rarer these days.

Like others I sincerely hope and trust that some at least of the WNW assets could be bought and utilized by another company in future - but also thank the WNW team for the enormous positive impact that they have had on our hobby, and in particular, our highly specialised field within the hobby. I hope that they will all be able to find gainful employment as soon as possible.

Stephen.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Bill_S on May 16, 2020, 09:54:37 PM
Thanks for the info, Dave. While I am dismayed over the demise of WNW, I'm thankful to have purchased a few of their gems - they most certainly raised the bar.

I can't help thinking, though, of what might have happened if they had listened to their customers and brought out kits of the Dr.1, Spad, and Camel in the early days. How much mileage has Revell got out of those old 1/28 scale molds?

It is disheartening to hear of the treatment of a talented staff by management. Unfortunately, they are not alone in that sense. I hope for the best for them in the future.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: eclarson on May 16, 2020, 11:33:09 PM
Thank you Dave for that very informative and well written article. 

Wingnut Wings was certainly a unique company, the likes of which we'll probably never see again.  Amazing it came into being at all but very sad how it ended.

Eric
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: gedmundson on May 17, 2020, 12:58:39 AM
Thanks for taking the time to put this together Dave.
Cheers,
Gary
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: mgunns on May 17, 2020, 01:17:00 AM
Thanks Dave W for taking the time to sift through the chaff of speculation and rumor and provide an article based on fact.   Duly appreciated.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Madbox on May 17, 2020, 02:31:44 AM
I would like to just say thanks to Dave for the informative and delicate way in which he has written this article. The last thing on anybodies minds is to compromise any of the feelings of the guys who worked at WNW, they gave us many, many hours of pleasure, in the form of their expertise and I thank them for that, I for one can only wish them well, whatever life throws at them from now on.

Dave
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: bobs_buckles on May 17, 2020, 06:24:55 AM
Don't worry, Dave, the naysayers will still persist, but thanks for the update.

von B
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dekenba1 on May 17, 2020, 06:56:02 AM
Excellent article, Dave, thank you for explaining it all so clearly.
One thing unmentioned though is the allegation that they had mis-used government subsidies intended for the film industries on model and aircraft companies, causing much embarrassment to PJ's group.
Do you think this maybe helps explain the "why" as opposed to "what" happened re the sudden closure?
Thanks again.

I'll explain what that was all about.

Every year, the NZ Government gives grants to small film making organisations, as most governments do, to encourage them to work and relocate to NZ.

None of that money is paid to PJ, or any of his companies.

However, the organisations that do receive grant funding then spend the money on staff, rent, equipment, services, etc. Some chose to purchase from Wingnut, PJ's company. So those companies are customers to PJ. He provides a service, they pay him.

So PJ's company ends up with money that was granted, BUT only because of normal business trading. They don't receive any grant, they earn revenue from other companies that happened to be a grant.

So, it's a big stretch - but there is a sizeable movement in NZ that doesn't like PJ & thinks him too big for his boots.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dekenba1 on May 17, 2020, 07:17:31 AM

The WNW assets - moulds, IP, modelling, WIP, stock, etc - are worth some monetary amount. As it's a very, very small market, we don't really know the value

Reading Dave's article, I can't see a lot of financial or managerial logic in the company which leads to the question in what you say in the bit I quoted

How many more buyers are there for two-seater Axis planes? Or for large four engine bombers?

The kits with legs are going to be the single seaters, the expensive moulds are those big bombers. If you had to buy the lot in one go, I'd suggest the value of the moulds for the big kits would kill the deal

And that's assuming WNW own the moulds - if they are sitting in a factory in China that may not be guaranteed. It wouldn't be unusual to go into a joint venture with a moulding company over the costs of the moulds

As usual, more questions than answers

Richard

If you had quoted the whole of my post, you would see that I distinctly pointed out that the twin-engined kits, and some two seaters, may not see the light of day again because sales figures are too low.

Financially, that wouldn't make a difference to the value of WNW. If the sales figures are so low as to preclude that mould making a profit, then that mould has a value of $0 as a mould, and maybe a few bucks as scrap metal. The heavy investment in producing them is sunk, worth not a penny now.

The moulds are very probably in China & Korea, but I'd be shocked if they were anything other than 100% WNW owned. After all, WNW didn't need partners, it wasn't run as a business, so why look to spread risk by creating JV's?

I remain convinced that most of the kits will be seen in the wild again before too long. The Gotha G.I, G.IV and UWD, the unreleased HP's, the pair of AEG's & the two Felixstowe's future looks far less rosey, but as they constitute a relatively small part of the WNW portfolio & not too many people could afford them - or display them - it should not make much difference to the majority of WNW fans.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Captain Slower on May 17, 2020, 08:03:06 AM
First Dave, thanks for the article.  It was labour of love and provided some needed explanation for us.  It also proved a friend in the WWI replica field correct in that the Gene DeMarco affair at TVAL had been one of the causes to this.

I did a quick look up of Clare Olssen.  She is a 40-ish film producer now in corporate management.  So, I do not think that the sensibilities of a bunch old boomers were at the top of her needs.  I suspect she did not have a passion for airplanes, models, model airplanes or military stuff.  However, if her goal was to get a good price on WNW assets, she would have been wiser if she waited until after the Dr.I was released.  It would have brought in some additional cash flow and made the range and its intellectual property that much more attractive.  Further, if she sold it as an on-going enterprise, the designers would have been more likely available to continue to develop new product.   An acquiring company would want the people talent in addition to the assets.   I have been watching some of the Max' Models videos on model company histories and if a company was still active which acquired, it was usually kept that way for awhile.  For a Meng/Hornby type of company the WNW design staff would not be a major bit of overhead and they easily could work by telecommuting. 



Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Chuckt5 on May 17, 2020, 08:46:00 AM
Thanks Dave for a peek behind the scenes of what was WNW. I continue to hope for the best for the former employees and the kits.

Stay safe everyone and keep on building, Chuck.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dave W on May 17, 2020, 10:22:45 AM
New Zealand's leading online news website Stuff.co has published an article today on the Wingnuts closure and referenced the article from the Forum:

https://www.stuff.co.nz/business/121537116/sir-peter-jacksons-wingnut-wings-model-company-shuts?fbclid=IwAR3O7bpKwdzwNplfBLcl4n4X1HNZPs2XeQlXD8jdy0fFqe6EbkEKcgv72_M

Dave Wilson
Gold Coast
Australia
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: dr 1 ace on May 17, 2020, 11:21:58 AM


I can't help thinking, though, of what might have happened if they had listened to their customers and brought out kits of the Dr.1, Spad, and Camel in the early days. How much mileage has Revell got out of those old 1/28 scale molds?
/quote]

Yes, those kits are still in production since 1957 , just check the Revell of Germany catalog  plus many of the older re-pops are available on ebay.  Revell didn't listen to their customers either; there was a swell of support for a: DVII, Se5/5a, Alb DIII/DV/DVa, Nie 17, Hanriot, Nie. 28, Fok E-III, Dh-2 that was  ignored for far too long.  They would have had all the best known single seaters with multiple options for various re-pops with different color plastic/countries and markings. Revell would have had a nice line and the large scale WWI market to themselves. When they finally did the Fok D VII, the bean counters farmed it out, when the test shots came back and the in-house mold makers said corrections were needed to the wing and fuselage, all they got was a more or less-- no more money on the project.

It is sad tale repeated over and over, truly worse in the case of WNW by the apparently shabby treatment of the employees. Our heartfelt concerns for them and their families.  The saga is not over and thanks to Dave for this update, we will just have to wait to see what the future brings
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: aliluke on May 17, 2020, 11:24:57 AM
Hi Dave
Great article by you. I was just about to copy in the Stuff pick up but you bet me to it! I wonder if it will get legs in the press here in NZ - we will see but it is out there now and Peter Jackson may feel compelled to comment - but I doubt he will...

Cheers
A

Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: bobs_buckles on May 17, 2020, 10:38:49 PM
Quote
So, it's a big stretch - but there is a sizeable movement in NZ that doesn't like PJ & thinks him too big for his boots.

I bet they liked the size of his boots when he was bringing in hundreds of millions through tourism and putting New Zealand on the map. It's funny how they come after him now that his film output has decreased and the money isn't flowing in anymore. Funny that.

 >:( >:( >:(
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dekenba1 on May 17, 2020, 11:34:33 PM
May I just say that I appreciate this forum allowing discussions like this to be posted & actually encouraging discussion, in stark contrast to some forum.

It's what forums are all about, gossip!

Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: kensar on May 17, 2020, 11:49:59 PM
Thanks for publishing the article, Dave.  Gives us more insight into what happened.  Hopefully, the molds will be take up by someone to be used again.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Syd Solo on May 18, 2020, 02:46:20 PM
Dave,

Thank you for this well written and balanced description of what happened at WNW. By just sticking to the known facts and not submitting to speculation and interpretations of the situation you have enabled all on this forum a much better understanding of the matter.

My best wishes are with all involved at WNW, especially the former-employees. This team of peerless crafts-people gave us 11 happy years of superlative quality kit releases beyond our wildest dreams. At some point we wake up from dreams.

Cheers

Syd
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Ryan on May 18, 2020, 10:12:14 PM
Dave, great write up on a sad subject.

Ryan
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Pup7309 on May 18, 2020, 11:22:06 PM
May I just say that I appreciate this forum allowing discussions like this to be posted & actually encouraging discussion, in stark contrast to some forum.

It's what forums are all about, gossip!

Not sure about gossip but get your meaning, and couldn’t agree more about the ‘other place’
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Russell Niles on May 19, 2020, 04:56:56 AM
Dave

Great write up for us to give us added information in what has become an ever increasing conundrum. We really do not know just whats going to happen.
My whole experience with WnW  has been limited as far as builds go, having only completed one. However my stash runneth over with the kits.
I still say that everything will work out in the future, hopefully we will see the kits become available again in the days or years ahead.

Russ
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: lcarroll on May 19, 2020, 06:23:58 AM
Gentlemen, a polite reminder on a Moderation theme; reference to the unfortunate events at TVAL could be seen in various quarters as subject to prosecution on a Liability basis thus I must delete the former two preceding posts. I know you had no intent and this seems a bit "Draconian" however it is done to protect you, the Forum and Administrator, and really all of us. No censure nor criticism intended here. The individual referenced had absolutely no known association with Wingnut Wings and I'd ask we leave him out of this otherwise frankly healthy and objective conversation.
Many Thanks for your understanding.
Cheers,
Lance
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dave W on May 19, 2020, 08:17:04 AM
Further to Lance's post regarding TVAL and Gene de Marco, I am assured by very reliable sources at Wingnut Wings that Gene de Marco had no involvement whatsoever with WnW and his issues at TVAL were in no way connected with the closure of WnW.

I mentioned him in the Wingnuts article purely in the context that Wingnut Wings staff figured the group cost cutters would be looking at WnW after they sorted out TVAL in the wake of the de Marco affair.

So I'd ask members to please leave him out of any discussions on the Wingnuts closure.

cheers

Dave Wilson
Gold Coast
Australia
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dave J on May 19, 2020, 10:39:35 AM
Further to Lance's post regarding TVAL and Gene de Marco, I am assured by very reliable sources at Wingnut Wings that Gene de Marco had no involvement whatsoever with WnW and his issues at TVAL were in no way connected with the closure of WnW.

I mentioned him in the Wingnuts article purely in the context that Wingnut Wings staff figured the group cost cutters would be looking at WnW after they sorted out TVAL in the wake of the de Marco affair.

So I'd ask members to please leave him out of any discussions on the Wingnuts closure.

cheers

Dave Wilson
Gold Coast
Australia

I am happy to so confirm what Dave has mentioned above. Gene de Marco had no involvement in WNW what so ever. Yes we/they were based in the same building, and if anything Gene may of helped with some information or reference when one of the design guys had a question.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: dinor on May 19, 2020, 04:05:51 PM
Interesting article Dave and thank you.

Somehow I get the feeling that a 'perfect storm' has been brewing for a while.

Firstly the issues with TVAL although not directly connected to WNW are all part of the recipe. From my wider reading, other ingredients could have been the not as expected success of a recent movie release, what looks to be management changes at a senior level of the wider group and a subsequent different way of looking at things (maybe called politics !), COVID 19 and who knows what else.

You have to view whats happened not from an individual WNWs business perspective but from the wider business structure that makes up both Peter Jacksons corporate and personal investments.

Businesses like WETA, TVAL , WNW etc. must have huge fixed costs and burn up cash in a frighteningly quick manner especially if they are not earning enough revenue and making a profit.

Decisions and performance in one part of the group affect all parts of the group. I suspect some businesses within the group have been financially 'supporting' other businesses. But this can only continue for so long. Sooner or later something forces a 'rethink'. That something could be anything ranging from an economic shock to a people type shock ( ie. a founding principal of a business passing away). If the traditional 'cash cows' within the group stop performing and cash drys up up then the goal quickly becomes 'change the model'.

This will be the unrelenting focus of the senior group management...not what the managers of WNW itself or their employees think or are told/not told and not what customers think or are told/not told.

This focus shows up in the way they have dealt with employees and is no surprise at all to me as I have seen exactly this sort of behaviour many times in the corporate world. I am certainly not condoning it, I'm just saying its not unique at all. The focus of the senior managers will be on reducing short term expenses (typically labour which is the biggest non capital expense) whilst trying to generate an economic disposal of capital assets in the longer term.

WNW (and TVAL manufacturing as well remember) may have been seen as 'non core' and 'non performing' and a drain and therefore expendable. Maybe they were simply the easy parts to get rid of in the short term.  They could be quickly and easily cut off from the main body without being life threatening to do so. I mean you survive without an arm or leg but you need your torso and head so to speak  :)

The two wildcards for me going forward are firstly the disposal strategy. What is the current written down value of the assets and any liabilities for example around taxation. It wouldnt be the first time that assets are not disposed of because they are worth more sitting around to minimise tax liabilities for other parts of the group or similar.... in which case it may never be economic for the group to dispose of them. Is their book value such that it makes a sale probable or not probable? If its too high the group may retain the asset rather than bear a write off in the value at the time of a sale.

However the second and biggest wild card to me is Peter Jackson himself. Here is a man that pursued his dream when it came to not only WNW but also TVAL and other ventures. He demonstrated that he would pursue that dream repeatedly with some magnificent decisions which would never have been given the light of the day in a corporate world (not the least being the last multi engined large kit ventures) .......

and yet sometime in the recent past he has made a decision to effectively hand the decision making over to people that he knew did not share his dream and in fact quite the opposite...would treat it as a business with predictable outcomes.

So the key is why why why did he allow this  ?..... was it simply the reality of knowing he had to cut one dream off to save another dream as per my discussion above, was it a betrayal of trust or friendship, was it something else of which we will never know.

My bet is that regardless of the reason/s that lead him to this point..... this is part of his dream, its part of his 'soul' so to speak...... for crying out loud look at the magnificent business 'abherration' that he built up over 10 spellbinding years and the risks that he was willing to bear not just with his money but the association of his name publically with those dreams.

I think that this is not a man that would so easily allow his dreams to be sold to someone else...he will hang on to the remnants as long as he possibly can ....and part of me says quite rightly so.

What a magnifcent abherration its been, it has defied so many conventional business wisdoms for so long, and we will all benefit for so much longer... what never should have been ..WAS... and I for one choose to send a simple thank you to PJ and his team.

Most importantly I sincerely hope that in the end he and the WNW team truly believes that it was all worth while...because I suspect for many of us it most certainly has been that and more.

Sorry for the long winded ramble Kind Regards Dino


 
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Pup7309 on May 19, 2020, 08:37:55 PM
Dino - good read and raises some interesting questions - about how the disposal of assets depends on value of write downs, and why did PJ hand his dream over to the corporates?

The last question we may never know, the first we will find out sooner or later.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dekenba1 on May 19, 2020, 10:57:16 PM

The two wildcards for me going forward are firstly the disposal strategy. What is the current written down value of the assets and any liabilities for example around taxation. It wouldnt be the first time that assets are not disposed of because they are worth more sitting around to minimise tax liabilities for other parts of the group or similar.... in which case it may never be economic for the group to dispose of them. Is their book value such that it makes a sale probable or not probable? If its too high the group may retain the asset rather than bear a write off in the value at the time of a sale.

 

Not sure I understand this?

If the assets have a low book value, any sale should produce a book profit that I expect could be at least partly offset against brought forward losses. Any remaining tax payable can be paid from the sales proceeds. Result is that the business benefits from the sale.
 
If the assets have a high book value, and a sale produces a loss, there will be no tax payable. The loss could even perhaps be carried back if applicable. The business benefits from the cash from the sale.

I'm over simplifying, but what am I missing here?
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: macsporran on May 20, 2020, 02:32:50 AM
So, how many angels do you think can dance on the head of a pin?
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Borsos on May 20, 2020, 04:03:33 AM
So, how many angels do you think can dance on the head of a pin?

1000. of course.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dekenba1 on May 20, 2020, 08:17:01 AM
So, how many angels do you think can dance on the head of a pin?

1000. of course.

Or 1,100 very skinny angels.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Pup7309 on May 20, 2020, 01:19:24 PM
So, how many angels do you think can dance on the head of a pin?

Is the pin 1:1? Don’t ask me, no idea about this stuff, interesting as it is.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Borsos on May 20, 2020, 04:00:27 PM
To be precise: it’s a polemic from the Renaissance. The actual question is how many souls in heaven fit the tip of a needle.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: macsporran on May 20, 2020, 05:14:45 PM
To be pertinent, it is a comment on the futility of discussing and arguing about things for which no one has the answer.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: rhwinter on May 20, 2020, 05:21:43 PM
Hey, I knew we have some true renaissance-men here! LIKE😁!
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Pup7309 on May 20, 2020, 09:48:51 PM
To be pertinent, it is a comment on the futility of discussing and arguing about things for which no one has the answer.

Cool. If you don’t believe in spiritual concepts the answer is 0 of course. If you do = infinite (?). Or it is unknowable as suggested.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dekenba1 on May 20, 2020, 11:02:05 PM
To be pertinent, it is a comment on the futility of discussing and arguing about things for which no one has the answer.

Ah, but you have answered the question, grasshopper.

Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: miamiangler on May 21, 2020, 06:22:31 AM
whats with the vid on u tube which was published a week ago ? Im confused .
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: RAGIII on May 21, 2020, 08:34:48 AM
whats with the vid on u tube which was published a week ago ? Im confused .

I am not sure as I haven't seen the Video. Could you possibly post a link?
RAGIII

PS: How are you Willie?
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: dr 1 ace on May 21, 2020, 10:47:01 AM
To be pertinent, it is a comment on the futility of discussing and arguing about things for which no one has the answer.



You hit the needle on the head !


ED
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dave W on May 21, 2020, 11:15:23 AM
As an aside to the Wingnuts closure issue, I asked Malcolm Laird, who was Wingnuts' decal artist, whether he now planned to add a line of WW1 decals to his products at Ventura Publications, the Wellington business he runs specialising in decals and aircraft reference publications.

Malcolm's response was a no. So let's hope decal companies such as Pheon and Aviattic etc continue to feed our WW1 decal needs.

Dave Wilson
Gold Coast
Austraslia
Title: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: James on May 21, 2020, 11:28:30 AM
As an aside to the Wingnuts closure issue, I asked Malcolm Laird, who was Wingnuts' decal artist, whether he now planned to add a line of WW1 decals to his products at Ventura Publications, the Wellington business he runs specialising in decals and aircraft reference publications.

Malcolm's response was a no. So let's hope decal companies such as Pheon and Aviattic etc continue to feed our WW1 decal needs.

Dave Wilson
Gold Coast
Austraslia

Amen, Dave. It is a shame, but with Pheon and Aviattic, continuing, we know we will get some amazing decals.

James
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Dekenba1 on May 21, 2020, 05:26:55 PM
As an aside to the Wingnuts closure issue, I asked Malcolm Laird, who was Wingnuts' decal artist, whether he now planned to add a line of WW1 decals to his products at Ventura Publications, the Wellington business he runs specialising in decals and aircraft reference publications.

Malcolm's response was a no. So let's hope decal companies such as Pheon and Aviattic etc continue to feed our WW1 decal needs.

Dave Wilson
Gold Coast
Austraslia

Perhaps he signed a non-compete agreement with WNW?

If so, it'll run out at some point.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: the great waldo on May 21, 2020, 06:40:02 PM
Perhaps he's just p**sed off about the way things went at wingnutwings. I can't blame him.

Cheers
Andrew
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Brad Cancian on May 21, 2020, 06:54:01 PM
Hi guys - lets keep this on topic and avoid speculation please.

Cheers,

BC
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: johagan on May 22, 2020, 03:09:59 AM
 "Don't be sorry it's over, be glad it ever happened." Vince Gilligan, creator of Breaking Bad to fans at the start of it's final season.
Title: Re: Inside Wingnut Wings - what went wrong within the dream model company?
Post by: Jimbo on May 22, 2020, 03:48:22 AM
I’d like to extend my thanks to Dave for his reportage, it’s a window into a puzzling turn of events. Ever since I started buying WnW kits I’ve been amazed at “the whole package” from the box to the plastic to the decals and especially to the instructions. It’s a shame there’s trouble and I particularly feel for those who have lost their jobs. But as the above poster recounted, I am so happy they were here and that I’ve been able to collect quite a few for my stash.

Jimbo