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Hi All,

Just getting back into the hobby after several years dormancy. In getting back up to speed, it appears LGB has gone the way of the dodo? I see that Marklin bought them, but there's no mention of the product on the Marklin site. LGB of American mentioned they couldn't strike a deal to sell LGB, and in the last couple of days, LGBOA has transitioned to Silvergate. What happened? Was it Marklin's intention to buy up LGB and bury them so they wouldn't compete with their own line? Has production on all new LGB product stopped completely, so now it's just a permanent eBay item? Are any of the other lines producing as high quality product as LGB was?

Thanks for whatever info can be shared.

Jim in Wisconsin
 

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First...welcome back.

There is lots of information in the archives about this. This was perhaps the MOST DIVISIVE issue to ever get discussed here.

Here's the synopsis.

1. LGBoA spins off as a separate company from LGB...versus staying it's US subsidiary. LGBoA is bought by a newly formed company called G45.
2. LGB declares bankrupcy...lots of conjecture on why. Frankly irrelevant now IMHO.
3. G45 and Marklin competed to buy LGB...nasty competition. Other parties also bid for LGB but fell out of the bidding as the bidding continued.
4. LGBoA is rumored to own all international distribution rights for LGB except in Germany...this apparently complicated the bankrupcy sale immensely.
5. Marklin is awarded the right to buy LGB through the bankrupcy court in Germany...finally satisfying the banking interests that held the LGB notes.
6. Marklin takes ownership...has LGB molds shipped to them. LGB employees are laid off for the most part...and production apparently stops at the old LGB plant and in China.
7. Production of engines from the LGB molds by Marklin stops/goes to a trickle...rumors come out that the distribution rights aspects of the bankrupcy prevent Marklin from distributing...so they stop manufacturing "LGB" gear...certainly for US distribution.
8. G45 "sells" LGBoA...not sure of how to describe this...but LGBoA becomes it's own company again. G45 disappears from the discussions.
9. Marklin awards US distribution rights for Marklin gear to a company other than LGBoA. Apparently LGBoA had been bidding to continue the kind of work they had done for LGB (distribution and maintenance).
10. LGBoA, with no Marklin or ex-LGB gear to distribute, morphs to Silverstate Distributors...emphasizing PIKO as their primary product line I think.

Like I said....there's lots more intrigue that's been discussed. How much is true or false we'll probably never know.

I'm hoping this does NOT start the flame wars all over.
 

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Mikey,
Well said summary. Thanks. I especially agree with your last line.

JimC.
 

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At the price of fuel these days, I think I'll not throw any onto the fire/DesktopModules/NTForums/themes/mls/emoticons/tongue.gif
 

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Wait wait, I can still unpack my flamethrower... I think their still a little butane left in it /DesktopModules/NTForums/themes/mls/emoticons/tongue.gif
 

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LGB can stand for Lets Go Broke and it happened. We can only hope the lawyers can come to terms and allow us to get new items from what we once knew as LGB.
My biggest concern now is parts for my present roster.
Many of us have hoarded what parts we could find and created a shortage.
Massoth markets some items, but there are no track cleaner plastic wheel components available any more, and replacement motors now equal the cost of used engines on E-bay.
 

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It's starting to look like they are going to be "Long Gone By" trains. A couple on my shelf in need of repair appear destined to collect dust there forever.

Well at least we can still find New Bright trains in the closeout bin at WalMart... :)

Paul
 
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