Lionel files for bankruptcy (Toy Trains)

Lionel LLC, the nation's number one model train manufacturer, announced on Monday November 15, 2004, that it has filed a voluntary petition in the Bankruptcy Court of the Southern district of New York for protection under Chapter 11 of the U.S. Bankruptcy Code.

The filing was prompted by a $40.8 million judgment against the company for the alleged misappropriation of a competitor's toy train designs by a subcontractor.

Lionel's day-to-day operations will continue as usual, including meeting all merchandise shipping obligations customary for the holiday selling period and rolling out new products on schedule. The company remains dedicated to creating and manufacturing the quality product for which it has long been known.

Jerry Calabrese, the recently named CEO of Lionel, said, "The MTH judgment alone has forced us to take this action. Lionel is a sound company that enjoys healthy sales, growing demand for our products and the best brand and reputation in the business. Having said that, the size and weight of this judgment is just too much for what is essentially a small business to bear. Taking advantage of bankruptcy protection will not only allow us to pursue an eventual reversal of this unfair decision, it will enable us to create, manufacture and ship our products in our normal and usual way."

http://www.trains.com/Content/Dynamic/Articles/000/000/005/549zcgpn.asp

Mike Wolf is the owner of M.T.H. Why do I get the feeling he's a Repug who hates trial lawyers unless he needs one?

RL

My hubby will be very disappointed.

It appears to be a maneuvre to get out from under a legal judgement where they did something bad.

key words here: "by a subcontractor" not by them.

M.T.H. is suing all over the place to try to take over the market.

RL

:cry: