Märklin news: updated

[Rene Schweitzer]

NEW link in hobby news: http://www.trains.com/grw/default.aspx?c=a&id=1326

 

This story is courtesy of Model Retailer magazine. More events related to Märklin are happening, and we are working to get the "rest of the story."

 Banks discontinue credit to Märklin

Two banks last week discontinued a line of credit to German model railroad manufacturer Märklin, causing the company to miss payroll on the eve of the Spielwarenmesse Toy Fair in Nuremberg.

According to the German business magazine Handelsblatt, Märklin’s deal with Landesbank Baden-Wuerttemberg and Kreissparkasse Goeppingen for a 50 million euro ($64.2 million) credit line expired Friday. Neither bank extended terms.

Märklin, owned by Kingsbridge Capital, is celebrating its 150th anniversary this year. Kingsbridge is in negotiations to restore the line of credit.
 

[ttrigg]

In today's economic stress, that gives the distint possibility of their demise.  I hope not, so let's try to be positive.

[tangerine-jack]

Logic check

The company is 150 years old.  It's been through 3 insanely distructive wars, 5 changes of governments, 8 depressions (one where inflation was over 1,000%) and survived intact. 

Are we to now believe that this current media induced "economic crisis" has anything to do with the company's demise?  I think not.  I think its the logical end to years of poor management and lack of competetive foresight.  They failed to see it coming.

[vsmith]

 

Here we go again...

[two tone]

To All   Its time people who keep the fat cats of the banks in a job by having thier money in there for them to pay BIG FAT BONUS to them selves Say to them start lending and stop being so greedy

[two tone]

To All   Its time people who keep the fat cats of the banks in a job by having thier money in there for them to pay BIG FAT BONUS to them selves Say to them start lending and stop being so greedy

[Capt Bob Johnson]

My position is that any bailout is throwing good money after bad!!!  We bailed Chrysler out years ago and now they are back at the trough!

If one of the automakers goes under, so what; it will only make the others stronger!

If a mismanaged insurance company goes belly up, it can only strenthen the remaining companies!

I fail to see why I who have paid for my home should have to pay for people who bought homes that they realistically knew they could not afford!   

Companies going under and homes being foreclosed will force people to be more cautious about their finances...  Already, the savings rates in the US are up; they are putting some away instead of spending the whole paycheck every week.

If Marklin/LGB finally puts it's toes up, wouldn't that strengthen the market for the other manufacturers so that they can carry on???  

The world is not going to stop turning if a company goes under!   It's happened before, and it will happen in the future!    Good management that has an eye to the future, rather than the immediate return the bean counters want, is what the survivors will demonstrate!

[ONEHAGGIS]

Maybe the same thing will happen to Maerklin as it did with LGB? I hope not for the sake of the LGB product line. Other than that, I couldn't care less about Maerklin!!

I sure wish the Lehmann's could buy back LGB again.

Mark.