Large Scale Central

Here's some news

General Discussion
#1

±±±+ Breaking News ±±±±

Maerklin faces bankruptcy (report from the German Online edition of FORBES Financial)

The train model manufacturer with a long tradition, Maerklin, faces again insolvency. The company is supposed to have more than 50 Million Euro ($65 million) debt.

A few years back, Maerklin already once faced the end. Then the company was saved by the Britisch Investor Kingsbridge Capital. Now insolvency is threatening again. The company is supposed to be just with Landesbank Baden Wuertenberg (LBBW) in debt for $50 Million, which was reported by the “Wirtschaftswoche” (Economy weekly – newspaper) on Monday based on Information from inside the company (Maerklin). The credit lines terminated on January 31st. and have not been renewed. The banks don’t see any possibility to further restructure the company.

Last year alone Maerklin – a 150 year old traditional company – is supposed to have lost 20 Million Euro. In addition the Kreispaarkasse Goeppingen (bank) didn’t extend the credit line. LBBW refused to comment on the story and neither Maerklin nor the Kreisspaarkasse could be reached for comments.

Maerklin belongs since 2006 to Kingsbridge Capital. Last year there were already sales (takeover) rumors due to the bad business numbers.

#2

Well here we go again…

(http://www.funonthenet.in/images/stories/forwards/Roller-Coaster/roller-coaster-2.jpg)

WHEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE!!!

#3

Yeah, Vic.
I don’t really give a crap, but maybe we can bring HJ out of hiding. :slight_smile: :slight_smile:

#4

Wow–how much did they pay for LGB?

#5

More than was economically sound, it seems :smiley:

Just when there was hope of some US distribution again too. Oh well, I didn’t miss them when they left, and won’t miss them if they don’t come back. To the ventilators: Sorry for your loss.

#6

Hay maybe the old LGBoA can save them.
that would be cool. They gave great service.

#7

Holy crap… I’m not an LGB fanboy, nor do I own any Maerklin, but damn, thats bad news.

#8

I agree, Bob. I sure hope Bachmann, Aristocraft and USA Trains can avoid that fate in these tough times.

#9

Geoff,
the old LGBoA had their chance and mysteriously fell short by a few dollars, each time the hammer fell for the third time and each time they cried foul. A sceptic would think that they were following a preordained script after the acceptance of all those goodies back in 2006. Since then they have had several name changes and personnel leave the organisation. They also lost their goose that laid the golden spare parts. Over to you Jack and John and Marvin (or has Marvin retired as he is as ellusive lately as his nemisis, one HJ).

#10

but maybe we can bring HJ out of hiding.

Ah, but it’s not the Richters/Lehmann this time.

#11

Tim,

Perhaps LGBoA cashed in just in time.

#12

OR LGBoA made a reasonable bid and Marklin went nuts.

#13

I would have liked LGBoA to be successful as it was the ‘moral’ successor to the Richters, but alas if Marklin was to fail considering the backing/re-rganisation by the capital investment company, then one could not have held out much hope for LGBoA surviving the current crisis. Maybe Herr Schoentag is still in the picture, although, with production now outside of Germany, he has most likely lost interest as well as a lot of money on the venture.

#14

Perhaps if those wonderful investment bankers had left well enough alone LGB as well as Marklin and Minitrix would have possibly survived. Bankers have proven thier ultimate worth over the last 6 months!
Anyone who thought Kingsbridge gave a rats a__ about model trains is fooling themselves. As far as I’m concerned I would have rather seen LGB go down with the Richters at the helm than destroyed by a bunch of greedy bankers!

#15
Ray Dunakin said:
I agree, Bob. I sure hope Bachmann, Aristocraft and USA Trains can avoid that fate in these tough times.
I don't know if they will survive either...if all the 'Aristocrap' and 'Bachmann is junk' posts have their way we will be down to USA, MTH, and a handful of small time producers. Keep on biting the hand that feeds ya and pretty soon you're starving. Not good news indeed.

For the record I love my USA SD40-2, my Aristo RS3, and gasp…I just purchased a ‘K’, bad gears and all. Of course now I’m broke just like Marklin!

#16

If Bachmann and Aristo went under you can be sure that USA and MTH would be next on the bashing block!
It’s a hobby for some folks…

#17

As long as they keep prices reasonable for the buyer. They should do ok. To me LGB was way overpriced for my budget. Especially when you look at the price of Bachmann and HLW. If you think about it most of us kitbash most of the stuff anyway. Your better off spending 14 bucks on a HLW flat then over 50 on an LGB . Thats just my thought. But what do I know. Im just a poor boy trying to make an affordable RR. :slight_smile:

#18

Mark,
In today’s business environment, anything company might go under, including those “big three.”
Regardless of how much we bash them.
We wouldn’t bash them if they didn’t deserve it, would we?

#19
Shawn said:
As long as they keep prices reasonable for the buyer. They should do ok. To me LGB was way overpriced for my budget. Especially when you look at the price of Bachmann and HLW. If you think about it most of us kitbash most of the stuff anyway. Your better off spending 14 bucks on a HLW flat then over 50 on an LGB . Thats just my thought. But what do I know. Im just a poor boy trying to make an affordable RR. :-)
And you are doing a damn good job of it, too, Shawn.
#20
John Bouck said:
Yeah, Vic. I don't really give a crap, but maybe we can bring HJ out of hiding. :) :)
Hello, hello, hello :D

At the beginning of the year I decided that come hell or high water I was just going to take it r-e-a-l … e-a-s-y. One or the other of the mfgs going tits up? that’s life and more so considering the nice mess “things” are in. From the 14th through the 19th I was at the Nordic World Cup and believe it or not the sunrise and sunset on the 15th set the tone! (Video coming up!)
Stuff not getting delivered on time? no sweat, I have more than enough on my plate for the winter, the summer and the next winter, too.

Sooooo Märklin is in dire straights? not a big surprise considering some of the moves in the last few years! OTOH they probably could have found a way out if only they would have consulted the Richter Boys, what do you think? :lol: :wink:

Oh yeah, BTW while we’re on the dire straights read the other day that the case against Peter Mägdefrau (former owner and CEO of ROCO) is proceeding (judge and jury trial).