The famous German model railway maker Märklin could be approaching the end of the line. The firm’s filed for bankruptcy protection after failing to secure new credit from banks. Märklin’s top bosses insists that its everyday business will continue unaffected. However, that has provided little comfort to people who live in the company’s hometown of Goeppingen. One resident said: “The atmosphere is very bad, lousy. Many can’t believe that this is the end after 150 years.”
Having increased sales and made 128 million euros last year, some people, put the blame for the company’s woes firmly in the hands of the managers at the top. One toy shop owner said: “Maybe they should have invested in reasonable products and spent more on better models instead of expensive executives. Other firms have done this – trimming should always start on the upper floors first.”
Loved by millions, Märklin is an icon in the model railway market. But now its best hope on staying on track is the protection provided by Germany’s insolvency law.