Did K-line trains go bankedruped??? That’s what i am hering from my hobby store.
They were bought out by Lionel.
Dick
Texas Chief
Yes, K-Line did go bankrupt and closed. Lionel did not actually buy them, but made some type of arrangement with K-Line’s creditor.The whole proceedure takes an attorney to explain, but in effect, Lionel can use the K-Line name just as they have American Flyer.
[:(] I’m sure I’m not alone in my disappointment that K-Line is no longer in business. I think the company produced very good products at reasonable prices. I think the “competition” with Lionel, MTH, and the others was good for the hobby.
Maybe K-Line produced more than it could sell. Too many items, resulting in too much inventory having to be “blown-out” at reduced prices. That equals poor cash flow. Good for buyers, bad for K-Line. They also were accused of stealing proprietary technology by Lionel and apparently Lionel had enough solid evidence to win its lawsuit.
Over time, in an effort to run with the big boys, K-Line got in over its head and the problems were irreversible. K-Line evolved into a house of cards that eventually came down when its creditors called in the outstanding balances.
A few K-Line products will still be sold, except by Lionel – just like it sells S gauge under the “American Flyer” brand.
My train layout is with some lionel, but mostly K-line. Now i have to switch to lionel for my covered hopper cars and what a shame to see K-line go out of business.
I assume this thread should be in the “Classic TOY Trains” forum, not Classic Trains magazine’s forum??[;)]
I moved it to classic toy trains thanks.