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Product & Industry News

The toy and model train hobby is no different than any other. It is one of the most traditional of industries but things are always happening.

Top Stories

  • June 4, 2007
    Collectible Trains and Toys re-opens at new location.
         After a hectic two months of inventory clearance sales and packing 12,000 sq.ft. of merchandise into more than 1100 boxes and a dozen moving truck loads, Trains & Toys opens in it's new home.
  • Sept.5, 2007
    From Crains Detroit Business-Lead Paint Concerns
         In Chesterfield Township, Lionel Trains has been conducting local tests of its warehoused inventory for lead contaminated paint, even though the company has had no product complaints, Lionel CEO Jerry Calabrese said. The new tests have not found cause for concern.
         Lionel has outsourced most production to Asia since 2001, but Calabrese said many large retail chains that carry Lionel products already test the safety of toy products before they go on display.
         “We still did our own testing, just to be sure,” he said. “But we trust our manufacturers in Asia. This (testing) was just an added precaution.”
         Click HERE to read some interesting information concerning the lead paint problem.
  • August 4, 2007
    Lionel Wins Ruling in Bankruptcy Court
         Lionel won two major and important rulings from Judge Lifland in the bankruptcy court this morning. The more important of these was the decision that the future trial (in others words,the Bankruptcy Code section 502c "damages estimation hearing') in the trade secrets case would be tried before the judge, instead of a jury trial in the Federal District Court in Detroit, Michigan. The second important ruling was Lionel was granted a fifth extension of time, giving it the exclusive right to file its bankruptcy reorganization plan.
         Lionel's attorneys previously made a motion requesting that Judge Lifland try the trade secrets case to expedite its exit from bankruptcy. MTH cross-moved, seeking to move the case to the Detroit District Court (the court where a jury awarded them $40.8 million dollars in June 2004 which was later vacated on appeal on December 14, 2006) for a jury trial there.
  • July 26, 2007
    Marklin Acquires LGB
         After LGB's insolvency late last year, legal entanglements and other issues prevented several interested parties from an immediate acquisition of the highly respected train maker and trying to continue relatively uninterrupted production of this exceptional product line. Money and Politics. In a creditor's meeting on July 26th, it was agreed that Marklin-Holding GmbH of Goppingen Germany had the best offer of the several suitors.
         Marklin will continue to produce LGB for a while in the long time home of LGB in Nuremburg but will eventually move production to it's own facilities. The status of LGB of America in this issue is currently not known. The official Marklin Press Release can be seen here. It is a PDF document and requires Adobe Reader.
  • Late 2006
    LGB Declares Insolvency
         In a surprise move, German manufacturer LGB Ernst Paul Lehmann Patentwerke oHG owners of the LGB brand, declared insolvency, ceased production and sought protection from creditors. LGB  had recently sold LGB of America (LGBoA) to a group of American investors operating as G45 (as in Gauge 45mm-traditional 1-Gauge track).
  • Feb.16-April 18, 2006
    Lionel Acquires K-Line Electric Trains
         After winning an ugly battle in the court system involving stolen trade secrets and misappropriated technology, Lionel announced and confirmed the acquisition of K-Line Electric Trains and it's assets. K-Line was caught red-handed with the theft and had sought bankruptcy protection in August of 2005 and found itself deeply in debt and effectively out of business by January 2006. Moving quickly, Lionel reached an agreement with K-line's Chinese manufacturer Sanda Kan to whom K-Line owed their primary debt.
         In point of fact Lionel is currently only licensing the right to manufacture K-Line products but by agreement is in full control of the brand. Asset ownership still resides with Sanda Kan. Lionel will continue for some time to produce "K-Line By Lionel" using the tools and designs of the company and an agreed upon revenue schedule due to Sanda Kan will be followed. Eventually Lionel and Sanda Kan will make a decision whether to acquire full ownership of all assets (and any outstanding debt at that time).
  • Jan.20, 2006
    Quotes From Fortune Small Business Online/CNNMoney.com
         "This used to be a gentleman's business," says Lionel CEO Jerry Calabrese. "But in the last decade it's become very ugly." An aging customer base, a supply glut, and a technology arms race have turned Uncle Fred's hobby into a blood sport, says Neil Besougloff, editor of Classic Toy Trains. It's not likely to get better. "The primary thing is that age is catching up with toy trains," says Ron Hollander, author of a book on Lionel. "There's a diminishing pie, and the boys are fighting over the crumbs."

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