MRE MAG reports that after a year of turmoil for Märklin, the American investment bank, Goldman Sachs, has come to Märklin's rescue in a bid to buy some of the Märklin family shares. If the current negotiations between the bank and the company are successful, Märklin will receive a cash injection to relieve their present crisis.
The crisis at Märklin has been gradually deepening as a shrinking model railway market has seen an ongoing fall in demand for their products, taking the company into the red. Besides being the oldest model railway manufacture (Märklin was founded in Göppingen
in 1859), the German company has been one of the world's largest. In the late 1990s they took over the rival German manufacturer, Trix.
Märklin's boss, Paul Adams (pictured above left), blames interest charges on the crisis claiming that the company has been making a trading profit. However 600 staff have been laid off over the last two years leaving a workforce of 1400.
[Via Model Railway Express MAG]