Large Scale Central

That's what the "Nürnberger Zeitung" mentioned

General Discussion
#1

Hi all,

The “Nürnberger Zeitung” http://www.nz-online.de/artikel.asp?art=624184&kat=6 reported the following

NZ 2007/03/23 said:
[i]Purchaser Hermann Schöntag is unable to pay[/i]

LGB again threatened by insolvency

Nürnberg - It is now official, reported by the “Nürnberger Zeitung” in mid-February: Hermann Schöntag is unable to raise the funds required to buy LGB.

From what an insider mentioned it isn’t a matter of insufficient assets, the snag is liquidating those assets. He was unsuccessful in those attempts even past the due date which was March 1st 2007. Neither banks nor other investors would lend the funds to bridge the gap to the purchase sum, still an unknown quantity. But instead of tackling the problem aggressively, he was repeatedly indicating that “everything is OK”, according to a source familiar with the case.

Schöntag, who is also the owner of the Rügen railway - better known as “Raging Roland” - was in Dec 2006 the successful bidder for the company. One of the main reasons was his assurance to preserve the 150 jobs - unlike Kingsbridge Capital, who already own Märklin and Trix.

While the Christmas Season business was still brisk, shipping apparently stopped as of Jan 29th 2007. The shelves at the dealers have stood empty for some time, according to industry insiders. The customers of LGB - the trains are four times the size of normal model trains - are at any rate upset. However, production stopped only the middle of this week. A repeat of the insolvency of Ernst Paul Lehmann Patentwerk - that’s the official title - is not out of the question. Insolvency trustee Steffen Goede wouldn’t comment.

Schöntag is still making efforts in regards to LGB. “Ultimately the company absorbed considerable funds - i.e. materials and wages” mentioned the insider. But Märklin has also again positioned itself as a potential buyer, as has model railway producer Piko. Hornby on the other hand is no longer interested.

Anja Kummerow.

#2
Hans-Joerg Mueller said:
Hi all,

The “Nürnberger Zeitung” http://www.nz-online.de/artikel.asp?art=624184&kat=6 reported the following

NZ 2007/03/23 said:
[i]Purchaser Hermann Schöntag is unable to pay[/i]

LGB again threatened by insolvency

Nürnberg - It is now official, reported by the “Nürnberger Zeitung” in mid-February: Hermann Schöntag is unable to raise the funds required to buy LGB.

From what an insider mentioned it isn’t a matter of insufficient assets, the snag is liquidating those assets. He was unsuccessful in those attempts even past the due date which was March 1st 2007. Neither banks nor other investors would lend the funds to bridge the gap to the purchase sum, still an unknown quantity. But instead of tackling the problem aggressively, he was repeatedly indicating that “everything is OK”, according to a source familiar with the case.

Schöntag, who is also the owner of the Rügen railway - better known as “Raging Roland” - was in Dec 2006 the successful bidder for the company. One of the main reasons was his assurance to preserve the 150 jobs - unlike Kingsbridge Capital, who already own Märklin and Trix.

While the Christmas Season business was still brisk, shipping apparently stopped as of Jan 29th 2007. The shelves at the dealers have stood empty for some time, according to industry insiders. The customers of LGB - the trains are four times the size of normal model trains - are at any rate upset. However, production stopped only the middle of this week. A repeat of the insolvency of Ernst Paul Lehmann Patentwerk - that’s the official title - is not out of the question. Insolvency trustee Steffen Goede wouldn’t comment.

Schöntag is still making efforts in regards to LGB. “Ultimately the company absorbed considerable funds - i.e. materials and wages” mentioned the insider. But Märklin has also again positioned itself as a potential buyer, as has model railway producer Piko. Hornby on the other hand is no longer interested.

Anja Kummerow.

This sure does confirms LGBoA's statement of February 14 in which Tony said, "We learned today that Mr. Schöntag, the announced buyer of E.P. Lehmann, has been unable to secure bank financing to complete the purchase. Although we believe that another buyer or investor will be found, this is an extremely difficult situation for our many friends at Lehmann, and we wish them all the best."
#3

Yes, Kenny,

It does!
Frankly, I much rather hear it from an official source that doesn’t have an axe to grind.

In contrast to the “reliable sources” that are very often cited, but for “understandable reasons” can’t be revealed, there is a bit more in the News reports in the papers. Not least of which is this paragraph from the earlier, translated report.

NN said:
What complicates the search is the unresolved legal question between the local LGB and LGB of America. Both lay exclusive claim to the worldwide trademark rights outside of Germany. Insiders consider the German position as more promising.
Since I don't quote all the "reliable sources", but have plenty of "unofficial" feeds, all I can say is "Yep, that sounds pretty logical to me!"

Sadly for the Northamerican “LGB only” clan it would appear that many of the things on which the dealers base their LGB business will be in short supply. Will everyone, who “absolutely must have LGB track”, get his track this Spring? Will spare parts be next on the list?
Or will we get the customary “Business as usual” routine? Time will tell! :wink: :slight_smile: :slight_smile:

#4

Update:

There is still no additional information on the insolvency court’s website. Which would indicate: SNAFU. :wink: :slight_smile:

PS. for the quick repliers: So far the insolvency court had an official statement within 24hrs of any substantial developments.

#5
Hans-Joerg Mueller said:
Update:

There is still no additional information on the insolvency court’s website. Which would indicate: SNAFU. :wink: :slight_smile:

PS. for the quick repliers: So far the insolvency court had an official statement within 24hrs of any substantial developments.


It’s a conspiracy to keep you out of the loop…He…He…Haw…Haw!

#6
The Lone Railroader said:
Hans-Joerg Mueller said:
Update:

There is still no additional information on the insolvency court’s website. Which would indicate: SNAFU. :wink: :slight_smile:

PS. for the quick repliers: So far the insolvency court had an official statement within 24hrs of any substantial developments.


It’s a conspiracy to keep you out of the loop…He…He…Haw…Haw!

Marvin,

No conspiracy, just the fact that - unlike the “reliable sources” - the insolvency court apparently updates that particular website only when there are real/substantial developments that influence/alter/nullify the ongoing insolvency proceedings.

Time will tell! :wink: :slight_smile:

#7

HJ and others who may know:

Is LGB of America the single reciever/distributor in the U.S. of LGB products from Germany?
Secondly, is it accurate LGB track is not being brought to the shores and distributed? If accurate, has there been any stated rationale if other LGB products are being produced when track is still the most common product to the hobby?

Any insights?

Thanks,

Wendell

#8

Wendell,

It isn’t known what distribution Schöntag, or anyone else for that matter, now considers for NA. If contracts were in place between EPL Patentwerk and LGBoA, it doesn’t automatically follow that the successor company assumes those contracts.
I know some industry examples where this happened i.e. a new distributor was appointed ; it all depends how the new owner views the previous relationship.

As far as has been published there are approx. 14 weeks of delivery from the source of the rail profile. And like at most mfgs, the count starts from the day the order has been accepted. It is quite possible that the profile supplier would like to see

a) money still owed by EPL Patentwerk

b) money upfront for any order placed.

Time will tell.

But here in NA, as well as in Europe, there are alternatives to LGB track. Some people may have to eat “crow” if they run out of their “most favourite” track. :wink:

#9
Wendell Hanks said:
HJ and others who may know:

Is LGB of America the single reciever/distributor in the U.S. of LGB products from Germany?
Secondly, is it accurate LGB track is not being brought to the shores and distributed? If accurate, has there been any stated rationale if other LGB products are being produced when track is still the most common product to the hobby?

Any insights?

Thanks,

Wendell


Yes, LGBoA stills remains the sole distributor of LGB in the U.S.

True, on the track. And shortages in some track items has occured.

Nuremburg has not produced any track…Materials from suppliers to Nuremburg for track production are at a standstill. I’m glad I listed to the sources and stocked up. Hee…Hee.

#10
Hans-Joerg Mueller said:
But here in NA, as well as in Europe, there are alternatives to LGB track. Some people may have to eat "crow" if they run out of their "most favourite" track. ;)
HJ the trouble is that some of those alternatives are crap!

I use LGB switches simply because they are the only ones that dont stall or derail my stuff. Ive tried Aristo’s which are complete shit and USAs are basicly the same as Aristos. I dont have any issues with straights or curves but A/C & USA turnouts bite!

If production ceces for a prolonged period, the prices of used stuff on ebay is going to go nuts.

#11

The Aristo #6 is not bad, although the micro switch sucks. The Aristo WR turnout needs several tweaks to make it useable.

I would agree out of the box, the LGB are much better operationally. I use air operated switch motors, so I don’t care about the switch motor. Since I use stainless steel, I really have no choice. The fact that the Aristo stuff is much less than the LGB stuff helps mitigate the extra effort I must expend to make them useable.

For people who do not want to modify/work on their switches, I would agree with your first statement!

Regards, Greg

#12
Victor Smith said:
Hans-Joerg Mueller said:
But here in NA, as well as in Europe, there are alternatives to LGB track. Some people may have to eat "crow" if they run out of their "most favourite" track. ;)
HJ the trouble is that some of those alternatives are crap!

I use LGB switches simply because they are the only ones that dont stall or derail my stuff. Ive tried Aristo’s which are complete shit and USAs are basicly the same as Aristos. I dont have any issues with straights or curves but A/C & USA turnouts bite!

If production ceces for a prolonged period, the prices of used stuff on ebay is going to go nuts.


Vic,

The German saying “In der Not frisst der Teufel Fliegen” (In an emergency the devil will eat flies) could come to pass.

What amazes me is how many ways I have read to make both LGB and Aristo turnouts more serviceable i.e. fix the ailments and enjoy good operation.

Soooooo if you can’t get the one make you get the other and fix what needs fixing before you even install the stuff. Save some money on the purchase while you’re at it.
No different than checking and regauging wheelsets, checking and lubricating any of the engine when they arrive and a slew of other things.

BTW I have it on good authority (friends who use the “stuff” more extensively than I do) that LGB turnouts are not trouble free. Which is quite logical; after I checked some of the tolerances on the ones I have, I would be surprised if they are trouble free. Oh yeah, I do have Code332 track and turnouts in my staging area in the garage.

At one time I also had Code100 track on my HO staging portions. :wink:

#13

Vic, it might be to your advantage to pick up what you need for turnouts now while they are still available…and at a reasonable price. I just did a head count on my indoor layout to see what I would need in the near future and made my purchases. Everything is still out there if you look around.

#14
Victor Smith said:
If production ceces for a prolonged period, the prices of used stuff on ebay is going to go nuts.
If I was a betting man, I would procure (if needed) ASAP:

12000 Series 30 degree switches
16000 Curved 8 foot raidius track
10600 Straight 2 foot straight

…As my first choices…but I’m not a betting man and I didn’t wait to read it in the newspapers!