December 29, 2004 |
Lionel, maker of model trains since 1900, can continue to use loans from PNC Financial Services Group and General Electric Co. through Jan. 31 while it seeks new financing, a U.S. judge ruled. The $36 million in loans from PNC Bank and GE's Business Capital unit were set to expire Friday. U.S. Bankruptcy Court Judge Burton Lifland in New York extended Lionel's access to the loans by one month. The lenders agreed to the extension.
December 25, 2004 |
After chugging along for more than a century, Lionel, the venerable maker of model trains, is struggling to stay on track following a nearly $41-million judgment that pushed it into Bankruptcy Court. The ruling against Lionel, once the world's biggest toy maker, has exacerbated the company's problems in an industry marked by intense competition for a small and demanding group of customers.
November 16, 2004 |
Lionel, a famous name in American model trains for more than a century, said Monday that it was forced to file for bankruptcy protection after a court ruled against it in the alleged misappropriation of a competitor's train designs by a subcontractor. Lionel, based in Chesterfield, Mich., intends to appeal the $41- million judgment against the company, Chief Executive Jerry Calabrese said. The suit was originally brought by Mike's Train House in South Korea, where it won a small judgment.
February 2, 2001 |
Model train maker Lionel will close its manufacturing operations in Macomb County, Mich., by the end of August, because of increased costs and competition. About 325 workers will be laid off initially, but some will be offered new positions. The company's Michigan operation employs about 550 people who are represented by Local 417 of the United Auto Workers. Founded in 1900, Lionel had reported revenue of more than $33 million by 1953.
December 26, 2000 |
Almost 70 years ago, an employee at the Lionel train company suggested that getting people to run a model train around their Christmas tree might sell more trains. Whether that inspiration came from personal experience or a flash of marketing brilliance is lost in time.
April 13, 2000 |
Lionel, the world's largest marketer of model trains, was accused by a rival, Mike's Train House of Columbia, Md., of misappropriating trade secrets for design and production of innovative model railroading equipment. In a lawsuit filed April 5 in federal court in Baltimore, Mike's says its business has been built over the last 15 years on making the most realistic model trains in the industry.