Is this true the worlds largest toy train maker goes under? How did this happen and is it true?? Who owns Lionel trains or is Lionel its own company??
Lionel filed Chapter 11 bankruptcy. Contrary to popular belief, this does not mean the company is going belly-up. In this day and age, companies file bankruptcy for strategic financial reasons whether or not they plan to stay in business. I’m not sure how it all works, but if done correctly, a company can use it as a tool to increase profits or whatever. In Lionel’s case, I believe they filed in order to avoid paying the huge settlement/damages to MTH because of the lawsuit. This kind of thing happens all the time in the business world, and as big as Lionel is, I wouldn’t worry too much about it.
This topic has been discussed a few times already on this forum. Do a forum search for a topic titled “Lionel Declares Chapter 11 Bankruptcy” for more info.
Cheers,