I totally agree totally with Per and Mike. Unless Marklin change their pricing system, and re-write their marketing strategy to put a "Marklin in every toy shop, dealer shop and hobby shop" like a "A PC on every desk and in every home" and begin to target train enthusiasts of all ages, I believe Marklin is too short sighted.

Btw, what are the "real" advantages of 1:100 vs. 1:87.

Cheers,
Ranjit

I would be a very large task to market something worldwide to the scale some people are suggesting. Marketing demographics are different in Germany, UK, Italy, Canada and USA. The cost of advertising is crazy. In Canada is seems that it doesn't exist. I picked up the Walthers 2009 catalog and out of over 1000 pages there about 10 pages featuring Marklin products. I think Marklin should be putting more pressure on their partners like Walthers to help promote the products. If they won't step up and help Marklin should find better distributors.

I think Marklin has a good thing with the hobby line. All those little kids who get hobby sets now will be buying the high end models later in life.

Darren

In my experience young people don't play trains (don't matter if these are toys or model ones) simply because they don't know that model/toy trains exist!

Some months ago a couple of 16yo teenager came to visit my layout. They stayed there half a day, taking pictures and movies of everything with their cell phones, very surprised about the detailing, the digital functions, sound and so on... and the reliability of the system. They didn't know that this can be such and interesting and hi-tech hobby instead of a boy toy!

I believe in other countries is perhaps easier to take contact with MRR, but in Italy there is no possibility outside shops and fairs (but if you enter a shop or a fair in most cases you already konw it). In supermarkets there are no hobby start sets, no matter if these are Marklin, Lima, Piko or mehano... there are none. I think this should be the first way to increase interest!

I think ebay has been for Märklin what walmart is in America for toys, a success story.
internet sale people have been able to offer the buyer locos, carriages, tracks, transformers originally being sold as startersets.
When you compare the price of a starter set and items indivdually being sold, both parties the seller and buyer had been winners.
A simiar catalogue loco may sold for 350 euros whereas the loco from a starterset may sold for 250 euros.
What this does opens up the market for startersets and leaves the individual catalogue loco or carriage in the background.
It also puts more pressure on individual dealers unless they join the internet market such as ebay.
I wonder whether their market strategy has been floored.
cheaper Kids sets, (to create a market), special runs for collectors (not enough) and the rest of sales are spread over a large number of choices and items to Märklin train enthusiasts.
If you create a market for starter sets, and these sets have a number of tracks and turnouts and than being sold at a fraction of the cost for its catalagoe price, is'nt Märklin undercutting its own price structure and therefore loosing out on profits to stay above.
As mentioned before with walmart, if Märklin would of sold items to walmart at a fraction of the costprice what it would to dealers, yes the amount of items you'll sell to walmart would be huge but the profit margin would be very low and if you don't sell a certain amount of items to make any profit you are doomed.
So I can see three major disadvantages: production + expenditures , price structure and sales.
Sales figures do not come into the quotation, maybe for the consumer, to think this company is doing alright, but in fact loosing money.
to support consultans to pop up sales is an other strategy that has'nt worked financially.
I think Kingsbridge Capital lost the plot of identifying their core business and working on a sound structure to be able to keep trading at a minimal cost of expenditures.
in my opinion there was another strategy failure, to bring the company out of its demise since 2006 to increase sales dramatically to sell the company further down the years.
Kingsbridge, I think was'nt happy with the sales results, with the than current drivingforce and hired consultans to push for their sales targets.
The change of key players in the company was also a concern to the banks.
The complicated company structure may would of assisted Kingsbridge of selling off the company after it had reached its targets but may has now backfired to sell it off.

Well my kids knows it exists, but they are more interested in sports and PC. Fair enough. They do however like the Roco locomitives with loksound and the little digital crane from M*.

Regards SRB

Word from Europe is that there are 20 potential buyers lining for Maerklin

Hi,



Repair Service is back in operation. I've received 8 locs back yesterday.

Jörg

Hello All:

I agree with Mike, that Marklin definately needs to re-evaluate it's pricing policy (although this come from purely a selfish viewpoint . I'm not so sure about the Wal-Mart thing though. I value the quality and the eccentric nature of the line . Perhaps they could sell the "Hobby" line in retailers like Wal-Mart and perhaps this could generate an interest for the hobby in kids these days? I just don't know if I would like to see my Insider BR 05 sitting on a shelf, beside a Hot Wheels start set .

But I believe that all of this is speculation for now. A fellow modeler has told me that the new Maintenance Car (39971)this year comes with a five year warranty, so at least, Marklin should be around until 2014 .

James B

What does that mean?

That is an interesting development..

The way it was worded makes Kingbridge looks like those former Enron executives bled the company dry before making their hasty exit.

True, consultancy fees charged to Marklin was ridicilously overpriced. But if Marklin losses was (unofficially) 20 million in 2008, even if they didn't pay that much in the fees, they would still be in the red by about a few million euros.

the key in the article above is Märklin having the highest orders its had for years. That is positive news. Those consultants are a bunch of criminals. Look at the mess they left the company in (and many others too!).

Hi,

some background information for those who like the german language, are native german speakers or need food for automated translators ....

Financial Times Germany : www.ftd.de publishes a report: "Maerklin: Der grosse Eisenbahnraub "

American Consultant Robert Calhoun has been a colleague of Mathias Hinz, founder of Kingsbridge.
Secondly robert Calhoun was very expensive.
Robert Calhoun had been CEO for Kunert group in Germany
Aktionäre stimmen Kapitalerhöhung zu
- Kapitalerhöhung um bis zu 15 Mio. Euro beschlossen.
- Kunert verstärkt Vorstand durch internationalen Finanzierungsexperten Robert M. Calhoun.
Hauptversammlung beschließt Sanierungskonzept mit überwältigender Mehrheit.
Fast vollständige Entschuldung und Kapitalerhöhung beschlossen.

Article below: In short:
Kunert Group will restructure its financial burden

Immenstadt, 27. August 2008 - Die Kunert-Gruppe soll mit radikalen Entschuldung sowie anschließender Kapitalerhöhung stabilisiert und wieder auf gesunden Wachstumskurs gebracht werden. Für diese Strategie hat der Vorstand auf der diesjährigen Hauptversammlung des Unternehmens in Immenstadt große Unterstützung durch eine überwältigende Mehrheit der Aktionäre erhalten. „Wir streben mit den vorgeschlagenen Maßnahmen eine stabile Eigenkapitaldecke an und führen neue Liquidität zu, um das geplante operative Wachstum zu finanzieren“, sagte Finanzvorstand Hermann de Jong am 27. August 2008 in Immenstadt.
Hermann de Jong bleibt bis auf weiteres in dieser Funktion, nachdem der für seine Nachfolge vorgesehene Andreas Pahl wegen unterschiedlicher Auffassungen bzgl. der weiteren Unternehmensstrategie nicht mehr zur Verfügung steht. Neu in den Vorstand kommt der Textilexperte Stephan Oehl, der am 8. September bei Kunert seine Aufgaben übernehmen wird. Das Vorstandsmitglied Robert Calhoun scheidet wie angekündigt aus dem Amt aus.
Kunert wird sich nach der Abgabe der Marke Burlington auf die Stammmarken KUNERT und HUDSON konzentrieren und hat dafür eine Reihe neuer und innovativer Wachstumskonzepte vorgestellt. Wie Hermann de Jong ausführte, schlagen sich die operativen Maßnahmen positiv im Zahlenwerk des ersten Halbjahrs 2008 nieder. Von Januar bis Juni 2008 steigerte Kunert seinen Umsatz im Vergleich zur Vorjahresperiode um 13% auf € 41,5 Mio., einschließlich Burlington-Abverkäufen. Ohne die Belastungen aus der Restrukturierung war das EBIT ausgeglichen (erstes Halbjahr 2007: € -6,9 Mio.), beim EBITDA vor Restrukturierungskosten wurde ein Gewinn von € 1,6 Mio (Vorjahr: € -4,7 Mio) erzielt. Einschließlich Sonderaufwand weist Kunert für das 1. Halbjahr ein negatives EBITDA von €-3,6 Mio. (Vorjahr: € -4,9 Mio.) aus.
Die Hauptversammlung hat folgendes Sanierungspaket verabschiedet, das für Kunert eine solide Basis für die Zukunft bieten soll:

- Julius Textile, die Investmentgesellschaft von Kingsbridge Capital Ltd., verzichtet auf Forderungen in Höhe von 17,6 Mio. und Besserungsrechte im Umfang von 7,1 Mio.
- das Grundkapital wird von rund 14,0 Mio. auf rund 1,9 Mio. herabgesetzt und je zwei Stückaktien werden zu einer Stückaktie zusammengelegt,
- zudem wird eine Kapitalerhöhung um mindestens ca. 17,9 Mio. durchgeführt,
- In diesem Zusammenhang garantiert Julius Textile eine Bareinlage von bis zu 5 Mio.
- Schließlich wurde eine umfangreiche gesellschaftsrechtliche Restrukturierung der KUNERT Gruppe unter dem Dach der KUNERT AG beschlossen.

Durch die beschlossenen Kapitalmaßnahmen und die Verzichte der Investoren werden die Kreditverbindlichkeiten der Kunert Gruppe auf unter 7 Mio. reduziert.
Der Kunert-Vorstand strebt auf dieser Basis für 2009 ein ausgeglichenes und in den Folgejahren nachhaltig positives Ergebnis an.

Kontakt:
Marlen Coelius (Investor Relations)
Tel.: +49 8323 / 12-365
Fax:: +49 8323 / 12-538
E-Mail: Marlen.Coelius@kunert-group.de

Über die KUNERT-Gruppe
Das Unternehmen KUNERT mit Hauptsitz in Immenstadt wurde 1907 gegründet und zählt zu den führenden Herstellern von Beinbekleidung in Europa. Die KUNERT-Gruppe steht für die hochwertige Premiummarke KUNERT und HUDSON als Familienmarke. Das Unternehmen beschäftigt mehr als 1.200 Mitarbeiter. Neben dem Hauptsitz in Immenstadt produziert Kunert in Marokko. Kunert ist an der Frankfurter Wertpapierbörse (WKN 634190) und der Münchner Wertpapierbörse (WKN 634193) notiert.

While Calhoun was CEO, Kunert group lost its most important licence brand name: Burlington.

Reports also say that Calhoun and his Secretary Mary getting Euro 295,000.00 from the last months of last year and Janury this year (2009) from Märklin
Mathias Hink wants Calhoun to be top gun at Märklin but failes because Investment Bank Goldman Sachs hears of the plan, and in turn Hink engages him as consultant. Later Goldman Sachs Bank stops funding.
Article below: in short:
Millions of Euros had been sucked out of the company for pure greed and very little concern for the company itself.

Bei Märklin wurden systematisch Jahr für Jahr Millionen abgesaugt - durch astronomische Geschäftsführer- und Aufsichtsratsbezüge, sündhaft teure Darlehen, Bestandsverminderungen zu Schleuderpreisen und horrende Beraterhonorare.
Liquidation Commissioner Mr Pluta said: Without the Consultants, Märklin would'nt be broke today.

I could go on and on.
The article shows other 2 beneficiaries between Märklin & (Kingsbridge Investment = registered in Jersey) registered in Luxenbourg,
Kingsbridge Investment is also connected to an other Wiener Hardt group (Baron Alexander Schweickhardt) and out of this group is a: "Hardt Group Oppertunities fund".

Axel Dietz orders Audi Q7 with all its extras.

An other arm of Kingsbridge Investment is: Orion Cable. Nobody knows at this stage who owns Orion Cable.
All in all, it looks like coming to a pattern, that anybody involved with Kingsbridge Investment has high debts and at the same time engages consultans that is part of this debth and interest charges from banks e.g. Goldman Sachs Bank regarding Märklin.
Adler toys would of been Mr Hinks emergency company, to rewamp Märklin after its collapse.
The liquidation Commisioner Mr Pluta said: Who ever buys Märklin I don't want to see Mr Hinks name in it.

This is all so very sad, none of us know how it all happened, for myself, I was drawn to Marklin back in 1978 when I found a toy train made of metal, with 3 rails that rivaled my gigantic Lionel of my childhood. It was the same fantastic bulletproof toy in a size that fit my reduced lifestyle. I could put it away for a year or more without worry and it would drop onto the rails at full steam every time. Yes it wasn't 100% accurate, no I didn't or don't care... it's a toy. If I wanted accurate I'd buy a real train.( in fact I almost did buy a 44 ton switcher from the DRMO once) I find as I get older the less detailed models are easier for me to deal with. For Marklin many things have changed just like they have for me. I still buy them when I find one I love. I have found that I can no longer expect to pull one out of the box and expect it to work, even if it's new. ( finally got one of those) If I wanted to point at one difference, it's that one thing, reliability. Not car length or product availability. I have over 125 locos, hundreds of cars (that's just the Marklin stuff) and miles of track, all "M" and I like it that way. It is my greatest hope that Marklin weathers this and can resume production with those meticulous, well trained German assemblers, not people pressed into service for pennies an hour.
"Good Luck My friends in Goeppingen"

Well said, Thomas. The real celebration for the 150 years, rests with those, past and present, who contributed to the Märklin success. Without them, there would be no toy buyers.

regards
Kimball

Goldman Sachs Investment Bank itself went belly up last September and had to be bailed out by the US treasury to the tune of 10 billion dollars and renamed Goldman Sachs Bank, where it will operate under different rules than it did before. It was either that or be taken over and sold off in pieces like Lehman Brothers was.

They literally had no choice. It's still a very shaky bank with huge debt and could fold in the future. It's no wonder they are not funding or refunding companies such as Marklin, which would be considered a poor risk by any bank, in spite of how much we love it.

Far better run companies than M are also having trouble getting credit these days. Poor leadership in Marklin over the last few years is the primary reason for it's demise along with the credit crunch. I would say it's future is in the hands of the money gods and it's chances are about 50/50. Hope for the best and buy Marklin.

Cheers, Bob

This could well be the case.
What is perhaps described by the CEO's of Märklin that the consultans have been there to save the company, the prosecution could see it from the other side and say, the company has been sucked out of money and therefore put itself into that position by allowing funds to be wasted.
It would'nt take the prosecution long to establish, that creditors have not been paid, that money borrowed had not been used for the purpose it was intended for and profits had been pumped up so to say, to gain loans for cash flow problems.
Money can be re-called for a period of time, all depends on the company laws in each country. Australia it is 6 month.
Although the owners of Märklin say they've pumped in their own money, they allowed to withdraw about the same amount.
I think there is a very good case chance, some millions would have to be returned.
Of course there have been cases in Australia, wheras such funds had been offloaded somewhere else and the said money was not recoverable.
Criminal charges could also be laid and this would prevent existing CEO's of holding any position as company directors.

Does anyone of us have a Goldman acct? If i did, i would close it immediately out of protest for their incompetence...
However, i'm such a small player, my voice would never be heard. So i will protest silently by ordering more Märklin stuff just to make sure they will keep producing toys for the next generations.

That were excellent, indeed [:p][:p][:p]

And then - up and away to Sheriff Joe Arpaio's Maricopa County Desert Prison [}:)][xx(]
Their other friends from Wall Street awaiting 'em, already ...

Aren't they cute One can see at first glance they really enjoy the environment.
Just a pity Dietz can't bring his brand new Audi Q7 ...

Agree, James

But then they never could enjoy the comfort of living in a tent in Arizona desert ...

Nice comparison, Ralph ...
Let's look at it this way. At least a few can afford [xx(] living in Florida.

And they would never have the joy of picking up there bar of soap in a prison[}:)][}:)][}:)]

Nice pictures Lutz.

I would quite like to live in Florida

Well, at least the water will be warm!