Another shock for model railway fans: After the recent sale of Märklin to British investors now the German company LGB has filed for bankruptcy - the worlds leading manufacturer of garden railway products has announced it's insolvency today. 150 jobs are in danger of being lost at it's Nuremberg site.
Apparantly the factory gates were closed this morning as workers arrived for work.
LBG released the following info:
Ernst Paul Lehmann Patentwerk today announced that it was taking strong, immediate steps to prevent a hostile takeover of the family firm. Those steps include legal moves that should enable Lehmann to continue providing its quality products and services around the world.
"We do not believe that a hostile takeover financed by international bankers is in the best interests of our employees, representatives, retailers and consumers," said Rolf Richter, Managing General Partner of Ernst Paul Lehmann Patentwerk. "Lehmann has been operating profitably, despite the severe problems in the model train industry, and we believe our family atmosphere is a very important reason for our success."
To preserve that family involvement, Lehmann has taken the legal step of asking the German courts for protection from its financing banks. "We feared that the largest of our financing banks, an international bank forced upon us after the dissolution of our local bank, sold its loans to Lehmann to a third party without our knowledge," said Richter. Richter also emphasized that these moves will enable it to ship product and provide services during the crucial holiday sales season. "We are going to ship a large volume of popular standard items, like track, and exciting new items," said Johannes Richter, Managing General Partner and production manager of Ernst Paul Lehmann Patentwerk.
In 1968, Wolfgang and Eberhard Richter created something unique: LGB, the world's first model railroad for indoors and outdoors. Today, LGB still stands alone, far above conventional toy trains:
LGB is big. The letters "LGB" stand for "Lehmann Gross Bahn" or "Lehmann's Big Train." LGB trains are G-scale - four times larger than conventional HO-scale trains. LGB trains are easy to put on the track, even for kids. Details on LGB trains are big enough to see and strong enough to withstand frequent handling. But you can fit a full circle of LGB track in space less than 1.3 meters (51 inches) wide.
LGB celebrated it's 125 existance in July earlier this year.