The Nuremberger Model Train Manufacturer Ernst Paul Lehmann Patentwerk OHG Declared Themselves Insolvent

E. P. Lehmann Patentwerk - September 2006

The Ernst Paul Lehmann Patentwerk (short EPL), manufacturer of the world-famous Lehmann-Gross-Bahn (LGB) miniature trains have always been part of the esteemed traditional Nuremberger toy industry. In July 2006 the family-owned enterprise celebrated their 125th anniversary. Since March 2005 EPL has been undergoing dramatic turnarounds. Continuing loss in sales throughout the model train sector forced the EPL owners to intensify their cost saving measures from 2002.

The 150 EPL employees supported the restructuring process by even signing a letter of wage renunciation. Due to the close relationship to their traditional location and the high quality produced there, EPL abandoned their Czech subsidiary in 2004 and moved the manufacturing back to Nuremberg. Saving the jobs in Nuremberg always had top priority

Nevertheless, the financers blocked the company accounts on September 1st, 2006 and banned the distribution of their assortment. Sales and order situation for 2006 are still on schedule. Additionally, EPL sold their lossy subsidiary LGB of America to an American company earlier this year – with an agreement on long-term operational partnership. Despite all this increase in liquidity the accounts of EPL remained blocked.

The bank continually added to the pressure on the personal liable owners so that they finally decided to go into administration. Now investors interested in EPL have the opportunity to register. EPL hope these measures will save the traditional, world-famous company and ensure that distribution of the novelties eagerly awaited by many LGB friends will be resumed just in time for the Christmas trade.

In 1968, LGB was the first-ever G-scale model train. But the family business is even older. 1881 Ernst Paul Lehmann founded a tiny toy manufacture in Brandenburg. Lehmann had a feel for cutting-edge ideas and his patented toys like the hooting car Tut Tut and the aeroplane Ikarus soon became world-famous. In 1921 Johannes Richter, Ernst Paul Lehmann’s cousin, entered the company. He fostered the enterprise reputation and created more innovative, patented toys – the genius skier Skirolf for example.

In 1948 the East-German government dispossessed the family. As a consequence, Johannes Richter moved to Nuremberg with his whole family. 20 years later, his sons Eberhard and Wolfgang came up with a revolutionary idea — the Lehmann-Gross-Bahn. Today not only Eberhard’s and Wolfgang’s sons Johannes and Rolf belong to the LGB family – many of the employees at the Nuremberg factory are family members, too.