That would give them a few weeks to correct the railings on the Re 4/4II #37356, if they want my confirmed order.[}:)]

It is always a risk in business, especially in times like this when finance companies are really tight with their money.
I would think that the management at Maerklin would want to make it through the Anniversary Year, so if there is a crisis, it would more likely be next year.

Regards

Mike C

Oh.. that means we can blame YOU if Marklin goes under????

Say it ain't so!

The company that I work for, Qimonda, is going through bankruptcy. I would not wish that on anyone. I can tell you that if that happens you will not get an improvement in quality while it is going on.

I believe that Marklin may face up financial problems. Due to that worldwide crisis, people will focus on buying the absolute necessary products and services and model trains.

For this reason, Marklin should lower their prices. It is unacceptable to charge 250 - 350 EURO for a locomotive, or 650 EURO for a pair of trains. They are toys for God shake, and there are people in Greece who should survive with less than 650 EURO per month!!!

Here is an article from Focus magazine that has been quoted in several of the German language forums. For those who speak only English, you can possibly translate this into Yodaese using Yahoo Babelfish.

http://www.focus.de/finanzen/ne...nsolvenz_aid_366930.html

"Maerklin stands before insolvency"

It speaks of an accumulated debt of over 50 million Euros.
'The term of the credit line expired on January 31, 2009 and was not extended. According to the report, the bankers see no more possibility of restructuring the company.'

If this is true and there is no further support from the banks, if Kingsbridge cannot sell the company or find new investors, it would appear to be pretty grim.

Regards

Mike C

End of the line of Marklin after 150 years? Does not look too good amid the worst economic crisis in our lifetime.
[:(][:(][:(]

This is not good. See also http://www.wiwo.de/unter...ht-die-insolvenz-385942/
But maybe a restart would be possible (with former investers staying behind with the losses)?
Regards, Henk.

Apparently news reports show that salaries are not paid.. that is bad news indeed:

Original in German:
http://www.handelsblatt....m-jubilaeumsjahr;2139524

Babel Fish funny translation

The model course manufacturer Märklin cannot pay its coworkers any longer. As a speaker of the Märklineigentümers Kingsbridge confirmed to the trade paper, do not exist at present the possibility of transferring the January salaries. One strives in negotiations with the house banks of Märklin to change this condition. How much time needs this, is unclear.

GÖPPINGEN/DÜSSELDORF. Among the coworkers of the Swabian traditional company unrest prevails for days. Although Märklin is 2006 for years in the crisis and can themselves already shortly before the insolvency, nobody of the fact remind that it would have come ever to delays with the content. When individual coworkers inquired Thursday and Friday about their money, they received only evasive answers. Because to the beginning of the month with many the rent is deducted and they fought without content entrance in the minus to slip, some from them on Monday already with fears of existence. As explanation for the being missing salaries them only “organizational reasons” one called.

Because of these reasons however the whole enterprise can fail. Both the Landesbank Baden-Wuerttemberg and the district savings bank Göppingen before did not renew on Friday run out and the already extended line of credit over 50 million euros for Märklin. Reasons are after information from company sources doubts about whether Märklin is still redevelopmentable.

With this question concerns itself the straight management consultation KPMG, which works at present on a redevelopment appraisal for Märklin. This is to be present within two weeks. Although Märklin announced the successful redevelopment already several times and rising conversions reported, the enterprise stands further on tönernen feet. However 2006 and 2007 Märklin wrote one Jahresverlust of 13,6 and 16.6 million euro with a conversion of 124 and 125 millions euros. Millions For 2008 only the conversion of 128 million is present, but no result. In the enterprise on a similar disaster as in the previous year one counts.

The fact that now more cannot even be transferred the monthly salaries meets Märklin at the conceivably worst time. 2009 celebrate the enterprise its 150jähriges anniversary, on Wednesday begin in Nuremberg the largest play goods fair of the world, which exists for its part for 60 years and celebrates of this cause “the largest party in the history of the play goods industry” wants, how the organizers announced. Märklin coworkers however already it has a horror for days before a fair on which they are probably incessantly asked whether its company actually survives the large anniversary year.

Already the accusations began. A Kingsbridge speaker said opposite the trade paper, the financial investor fought for Märklin and stand in intensive negotiations with the banks. Kingsbridge hopes, which would also keep LBBW and the district savings bank Göppingen the made promises. The banks did not want to take a position on request.

Among the coworkers the constant managing director change is valid as a reason, why Märklin does not advance. Within the last months alone three explained their retreat. In addition one vibrates the head in Göppingen over the fact that Märklin got a management consultation despite the desolate financial situation after the other one in the house, without the situation changed substantially.

However the US consultation Alix of partner carried for 2006 and 2007 million from the enterprise and suggested Märklin even for the price of the best turn Around of the yearly. The words of the Alix manager Ulrich Wlecke from 4 December 2007 sound for the Märklin coworkers, who wait now for their money, like scorn: “We are proud that Märklin was prämiert as typical case of a successful restructuring.”

It look very bad news for Marklin.[xx(]

In this article http://www.focus.de/fina...nsolvenz_aid_366930.html it appears that their 50 million euro loan expired on 31-1 and was not renewed. This is the same thing that happened to me last July, albeit at a much smaller scale (1 million USD) I can feel their pain. Looking your employees (at the time I had about 40 left of the 100 or so I had had over a year ago) in the eye and telling them you cannot pay them any more is not a pleasant expeience.

The good news is Marklin sold so many stuff in the past that there is a HUGE second market to buy and sell almost any M product.

Guys, let's all get a grip and see what is going to happen.
Unless one of you is M* CEO and knows for sure what is Marklin future.
It's going to be ok.

The really big worry is that the banks themselves are now getting into troubles refinancing-wise, and that affects loans to real companies who actually produce stuff - especially smaller ones...

Märklin seems to be a victim of such bank policy... Instead of extending loans on a long term, banks are now looking for securing assets in a kind of short-term "quarterly capitalism" view of reality...

A year ago, most banks in Europe made huge profits - which they gave away to shareholders, bonus programs for management and such instead of securing their own capital foundations for survival in "bad times"... What we see here is a result of bad management ideas and a shortsighted blindness of fundamental economical facts...

Obviously if the lending bank is facing issues that affect it's own operations, it will seek to limit any new loans and will seek to recoup moneys that had been lent out and were due.

As far as your comment about Mr. Iversen's "bashings", AFAIK this is not the only article on this matter. I dooubt that all the writers and editors have a personal bias against Maerklin.

Goldman Sachs was already significantly affected by the problems in the banking sector. Kingsbridge might be in a slightly better position. The main problem today is that if these companies want to sell Maerklin, they will be seeking to recover their original investments, plus the banks will want any new owners to guarantee or cover the outstanding loans, raising the purchase price by millions.

As far as unpaid salaries, that is not a major issue (as you say 'Peanuts'.) As far as the bank calling in it's markers, that's a whole other kettle of fish.

Times like these, having a few moments to enjoy your hobby are even more important. Maerklin is very important to all of us and we hope that the company will live on.

If one source is reporting a story, it can be questioned. If multiple sources are reporting similar stories, it makes it a little more believable. I cannot believe that the world is full of Maerklin haters who have nothing better than to 'bash' the company.

This story even made it into Spiegelonline
http://www.spiegel.de/wirtschaft/0,1518,605096,00.html

and AP/Yahoo NEws

http://de.news.yahoo.com/1/2009...-steckt-t-f8250da_1.html

Respectfully yours,

Mike C

Fair right, Mike - there isn't the whole world out to get M (paranoid thinking [xx(])
But when trust is lost, a small portion of it surely wouldn't mind trying [}:)]

Perhaps what we see here is a battle. German Banks vs. Kingsbridge Bank ...

Oh no all doom and gloom - doesn't sound good at all - let's hope M makes it through their 150 years at least. Not like Woolworths(uk) that just missed their 100 years.

I wish some of our locals in the Arab world here would be interested in model trains, then one of the wealthy Sheiks here could invest in M, instead of paying millions of $ for cool vehicle number plates.[:0][:0]

But these guys have also lost squillinions so no chance.[xx(]

Reborn with online.

http://news.bbc.co.uk/1/hi/business/7864194.stm

For people who want to see the translated text

http://translate.google....html&sl=de&tl=en

STUTTGART. The model railway manufacturer Märklin is deeply in the crisis. The Landesbank Baden-Wuerttemberg and the district savings bank Göppingen negotiate about whether credits are to be further given. The persons employed wait for their wages.

The model railway manufacturer Märklin is into substantial financial difficulties. It is unclear whether credits, which ran out to 31 January, by which banks are extended. At present the enterprise negotiates with the Landesbank Baden-Wuerttemberg (LBBW) and the district savings bank Göppingen about how it is to continue

With the district savings bank it means: “The negotiations run.” Jürgen Hilse, which said chairmen of the board of the district savings bank Göppingen, the negotiations were today resumed. Presumably it will give thereby a result. He cannot say details to the discussions. Also with the LBBW gives oneself one silent: “We commentate in principle no customer topics”, said a speaker. With the negotiations with the banks is around the extension of a credit over approximately 50 million euros, is called it in company sources. Neither the LBBW nor the district savings bank Göppingen wanted to confirm the height of the credit. To be clarified must, under which circumstances this credit can be extended, it means in company sources. Still exist however hope that the discussions successfully run. Märklin the banks a scheme of reconstruction to submit, in order to reach the extension of the credits, quotes the press agency Reuters one with the situation person trusted. Five to ten million euros of the line of credit so far were not exhausted, it are said. Last year Märklin is 20 million euro loss to have made. “If the line of credit is not renewed, is difficult it, further to keep house”, is called it in company sources.

With the industrial union metal Göppingen the financing problems of Märklin are well-known. “I can not confirm a threatening insolvency however”, said Renate Gmoser. However the January wages were not paid so far yet. Märklin assured to transfer to the persons employed the wages in the next days. In Göppingen rumors over dismissals circulate with Märklin for weeks, to which Gmoser did not want to express itself. Last year the model railway farmer had announced that with the personnel five million euros to be saved would have.

The model railway farmer, who belongs to the financial investors Kingsbridge and Goldman Sachs since 2006, increased 2008 despite a difficult Christmas business the conversion easily on 128 million euros. In the financial year 2007 the conversion was about 126 million euro. At the same time the deficit in the operational business was reduced compared with 2007, communicated Märklin in the middle of January. The enterprise did not announce numbers in addition however. With the most important branch fair, the Nürnberger play goods fair, will be the management of Märklin this week not thereby. Up to the evening the management nor the work council for a statement were to be achieved with Märklin neither.

If Marklin closed the door, The panic serious collector will take stock marklin off the delaers shelf.

Right, Steven
But I wouldn't call such mob "serious"
Those in the know will pick only the gems ...

Maerklin is a very big name in this business, so I am sure that they will survive "in some form" at the end of the day. However, this is a very serious economic downturn, and the model train market is primarily by people that will be hit hard. The market is not primarily for kids toys at the holidays, but for middle-aged men who spend discretionary income on the hobby. The golfing clubs are suffering for the same reason.--MM

I can't see what the Banks can gain by letting Märklin "brake down" totally. Even if Märklin still own their buildings, there can't be much in Märklin today to "grab". But I can certainly understand the Banks. There has been a lot of reports (from Märklin and owners/consultants) of improvements, but it seems like things have been deteriorating all the time instead. I don't know exactly what's been done the last two, three years, but it's amazing how little effect it has had.

I guess that the Banks have grown tired of Kingsbridge and want to put some more pressure on them. I've seen rumours that there have been some "bankruptcy-experts" employed by Märklin/Kingsbridge and maybe the Banks don't want them to be able to work "freely". I don't think their priorities are with the creditors.

The salaries will probably be payed on Wednesday, but that won't solve anything for Märklin as a company. We will probably see some very big changes in the near future, but hopefully Märklin can continue in some form.

As someone already have stated, it can't be fun to be a Märklin-employee today. But I guess there are also many dealers that are very worried. And I don't think other MRR-companies are that amused either. If Märklin disappears the future for the MRR-business as a whole will surely look even worse than today.

But Märklin isn't dead yet. Maybe she'll look much different in one years time, but hopefully she'll still be there!

/Torbjörn

I read it, keep posted news on Marklin Lutz.