Lionel Corp

The nation's two largest makers of toy trains are nearing a conclusion to a 7-year-old, multimillion-dollar lawsuit. Columbia-based MTH Electric Trains had sued Lionel, a century-old brand, accusing it of stealing train designs through a Korean subcontractor. The dispute has focused on patented computer technology that synchronizes a train set's sound, smoke and speed, crucial technology in their small but competitive market.

Lionel, a maker of model trains for more than 100 years, won reversal of a $40.8-million trade secrets verdict that had sent the company into bankruptcy. A Detroit jury in June 2004 found that Chesterfield, Mich.-based Lionel had misappropriated designs from its rival, closely held model train maker Mike's Train House Inc. A federal appeals court in Cincinnati set aside the award and ordered a new trial, saying the trial judge had allowed improper expert testimony.

Lionel Corp. Seeks Chapter 11 Protection: The one-time manufacturer of electric trains filed for protection from creditors while it reorganizes. New York-based Lionel, which sold its train business in 1969, operates 97 toy supermarkets in 15 states through its principal subsidiary, Lionel Leisure Inc. Lionel Leisure, based in Edison, N.J., joined its parent in the bankruptcy filing in New York. Lionel trains are now manufactured by privately held Lionel Trains Inc. of Mt. Clemens, Mich.

For an article on the offices and showroom maintained by the Lionel Corp. (the nation's largest manufacturer of toy trains) in San Francisco in the 1940s and '50s, I would appreciate hearing from anyone who has information, photos, written or published materials, anecdotes and recollections. ROGER CARP "Classic Toy Trains" 21027 Crossroads Circle P.O. Box 1612 Waukesha, WI 53187-1612

Child World Confirms Talks With Lionel: Child World, the third-largest chain of toy stores in the country, said it is negotiating with Lionel Corp. about a merger. Child World will close its 71 stores "within a short time" if an agreement cannot be reached, spokesman Gregory William Miller said. That would eliminate about 4,000 full- and part-time jobs. The company has already closed 54 stores.

For countless middle-aged American men, a bit of the essence of Christmas can be traced to a nondescript industrial park just outside this working-class city a short drive from Detroit. It is where Lionel electric trains come from. Building toward the Christmas season, hundreds of workers at Lionel Train Co. perched on stools as a little assembly line rolled slowly past, transporting parts of toy locomotives, freight cars and other "rolling stock" carrying the proud Lionel name.

The nation's two largest makers of toy trains are nearing a conclusion to a 7-year-old, multimillion-dollar lawsuit. Columbia-based MTH Electric Trains had sued Lionel, a century-old brand, accusing it of stealing train designs through a Korean subcontractor. The dispute has focused on patented computer technology that synchronizes a train set's sound, smoke and speed, crucial technology in their small but competitive market.

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.

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.

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.

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.

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.

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.

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.

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.

Child World Confirms Talks With Lionel: Child World, the third-largest chain of toy stores in the country, said it is negotiating with Lionel Corp. about a merger. Child World will close its 71 stores "within a short time" if an agreement cannot be reached, spokesman Gregory William Miller said. That would eliminate about 4,000 full- and part-time jobs. The company has already closed 54 stores.

For an article on the offices and showroom maintained by the Lionel Corp. (the nation's largest manufacturer of toy trains) in San Francisco in the 1940s and '50s, I would appreciate hearing from anyone who has information, photos, written or published materials, anecdotes and recollections. ROGER CARP "Classic Toy Trains" 21027 Crossroads Circle P.O. Box 1612 Waukesha, WI 53187-1612