Already a few years ago stood before the Märklin Off. Then saved the British financial investor Kingsbridge Capital, the company. Now once again the threat of bankruptcy. With 50 million euros should the company alone at Landesbank Baden-Wuerttemberg (LBBW) are in the Cretaceous, reported the "Wirtschaftswoche" on Monday, referring to the business community. The loans were at 31 January expired and not been renewed. The bankers see the report no longer made to restructure the company.
Fallen successful brands
Last year, the 150 year old tradition of the company enterprise circles that 20 million euro loss have made. Also Kreissparkasse Goeppingen have a credit line is not extended. LBBW wanted the report did not comment. Märklin and Kreissparkasse Goeppingen for an opinion were not achievable.
Märklin heard since 2006 Kingsbridge Capital. Given the poor financial figures of the past year there have already been frequently rumored sale.
Here's something from another forum--don't know if it's a translation
Maerklin faces bankruptcy (report from the German Online edition of FORBES Financial)
The train model manufacturer with a long tradition, Maerklin, faces again insolvency. The company is supposed to have more than 50 Million Euro ($65 million) debt.
A few years back, Maerklin already once faced the end. Then the company was saved by the Britisch Investor Kingsbridge Capital. Now insolvency is threatening again. The company is supposed to be just with Landesbank Baden Wuertenberg (LBBW) in debt for $50 Million, which was reported by the “Wirtschaftswoche” (Economy weekly – newspaper) on Monday based on Information from inside the company (Maerklin). The credit lines terminated on January 31st. and have not been renewed. The banks don’t see any possibility to further restructure the company.
Last year alone Maerklin – a 150 year old traditional company – is supposed to have lost 20 Million Euro. In addition the Kreispaarkasse Goeppingen (bank) didn’t extend the credit line. LBBW refused to comment on the story and neither Maerklin nor the Kreisspaarkasse could be reached for comments.
Maerklin belongs since 2006 to Kingsbridge Capital. Last year there were already sales (takeover) rumors due to the bad business numbers.
This is really too bad. I was hopeful that new LGB product would be hitting the US shores. I think that LGB being out of the picture or on shaky ground has hurt this hobby in general. To much of the public, large scale = LGB. Their new product list showed a return to the basics for the US outline models, moguls and Christmas. Oh well, this is another product of a bad world economy.
Funny I wasn't aware LGB was in business during the Cretaceous.
For those who don't know geology the Cretaceous was at the Period at the end of the Mesozoic, emding some 65 million years ago. The dinosaurs roamed the Earth during the Cretaceous, dying out at the end.
Last week two banks discontinued a line of credit to German model railroad manufacturer Märklin, causing the company to miss payroll on the eve of the Spielwarenmesse Toy Fair in Nuremberg.
According to the German business magazine Handelsblatt, Märklin's deal with Landesbank Baden-Wuerttemberg and Kreissparkasse Goeppingen for a 50 million euro ($64.2 million) credit line expired Friday. Neither bank extended terms.
Märklin, owned by Kingsbridge Capital, is celebrating its 150th anniversary this year. Kingsbridge is in negotiations to restore the line of credit.