Roco has filed for bankruptcy and have turned their receivables over to their bank, which is one of the first steps toward reorganisation bankruptcy.
It has been suggested that this has come about for a number of reasons which include the cost of their new facility and the generally flat European market for toys. It could also be their adventure into the North American market and subsequent withdrawal which would seem to point toward too much out-goings with and too little coming in.
Roco has been producing quality models since the early sixties. Over the years they have strived for excellence and today are considered one of the finest production model train companies in the world.
This is a shock to the model railway industry. In the 1970s, Roco became Europe's largest manufacturer of track. By investing heavily in automation they were able to produce track for other companies cheaper than those companies could produce it themselves. This resulted in their supplying much of the track sold under various trade names. Amongst their British customers was Hornby who had their track made in Austria by Roco for nearly 30 years before retooling it for production in China.
Roco in Difficulty [via Pat Hammond]