This post is part of a series on some of the most memorable companies that have disappeared.
Although the name Lionel, synonymous with electric model trains, is still the hallmark of that toy genre, the current Lionel LLC, is in no way directly connected to the original Lionel Corporation.
The root stock of Lionel trains, Lionel Corp., was founded in 1900 by Joshua Lionel Cowen and Harry C. Grant in New York City. However, that company did not originally set out to manufacture toy trains. At the outset, Lionel was in the business of manufacturing small electrical devices, including fans and light fixtures. Lionel's first model train was in fact a window display designed to attract customers to other Lionel products. The train display was an immediate hit with customers, who then wanted similar sets for themselves, and thus the toy train business was set in motion.
Lionel had a bumpy yet upward ride from the time of its incorporation until 1957. In that year, a convergence of factors quickly brought trouble upon the company. A shift in consumer preference from Lionel's classic "O" gauge trains to the smaller "HO" scale cut deep into Lionel's sales. Toy buyers also began taking greater interest in the automobile, which compounded the company's troublesome decline. Then began a series of critical yet unsuccessful business moves that finally drove the company to bankruptcy in 1967. In 1969, Lionel acquiesced to the reality of its financial troubles and its toy train legacy was sold in its entirety to General Mills (NYSE: GIS).
After selling it's toy train interests, Lionel continued down a tumultuous path in the pursuit of operating its own chain of toy stores. The company had highs and lows in that regard also, yet the decline of the company seemed to be in the cards. Competitive forces, corporate misguidance, and irreconcilable financial difficulties figuratively conspired to bring the company to its knees.
Finally, in June of 1993, Lionel announced its intent to liquidate assets and cease operations. Today, all that remains of the original Lionel Corporation is the stalwart Lionel name (a new company purchased the rights to the name). Now it is that new Lionel that proudly wears the patina of 108 years of childhood exuberance, and which is coupled with a deep loving respect for the railroads.
Let us know in the comments what you miss about Lionel. And be sure to check out other Companies That Have Vanished.










Reader Comments (Page 1 of 1)
6-06-2008 @ 9:07AM
Darrylheine said...
Did Lionel also own the long gone Kiddie City and Play World toy store chains (which were rivals of Toys R Us)?
6-06-2008 @ 9:35AM
Marv said...
I think they may have been -- i remember the name Lionel along with KIddie City at the stores in my area -- back in the late 70's i think?
6-06-2008 @ 9:49AM
Marv said...
I have a lot of memories when it comes to Lionel -- the first train set i got was at Christmas think i was about 4 or 5 years old -- still have pictures of it -- it had been my dads when he was a kid too -- still have it. Me and my dad build a fair sized layout in the basement that grew to have a number of Lionel trains and assecories. My dad has now for years collected Lionel O gauge and O-27 -- he has a basement full of shelves with trains. He belonged to a toy train club and back in the early 90's i think some milloinare investor from detroit had some kind of involvement with Lionel -- he had bought out the inventory and displays of a big hardware in New York that had sold Lionel Trains years ago among other things he was supposed to be involved in with Lionel -- Think his name was Koonz. He had a couple of huge museums set up in detroit that he let the train club members visit once a year -- i got to go with my dad and it was really something -- not just trains -- but toys of all kinds.
6-06-2008 @ 10:22AM
RJ said...
I got a Lionel trian set for Christmas when I was 6. My father worked for the NOW DEFUNCT New York Central RR and he also gave me a traditional railroadmens hat also. I was so proud of that train and the hat too. I still have the hat and wish I still had the train set. It got broken over the years by nephews and my own son and I kept it in my attic for years till I moved to California and got rid of a lot of stuff to lighten the load. Sorry I did it now.
I still have lots of fond memories of playing with that train set.
6-06-2008 @ 5:07PM
Rob Norton said...
Does anybody do research prior to writing a story?The piece on Lionel, is as factless as any I have read. It makes it look like Lionel is out of business. It is not. go to www.lionel.com and have a look at "all that remains of lionel is the stalwart name" Lionel LLC not only owns the rights to all things Lionel, it also bought the remains of Lionel Corporation, and owns that as well. While it is true that the trains are not technically manufatured by "Lionel Corporation", Lionel LLC makes some of the highest tech, quality Lionel products ever produced. This article is an insult to journalism
6-08-2008 @ 11:26PM
Smitty59 said...
Lionel trains are still around. Still being produced under the Lionel name. Neil Young, the musician owns at least a majority stake if not the whole thing.
6-10-2008 @ 8:07AM
Allan Miller said...
I've seen a good amount of inaccurate and error-filled reporting in my time, but this distortion of Lionel history probably tops them all. Yes, the Lionel Corporation in its original form no longer exists, but Lionel trains are still very much a presence in the marketplace and Lionel LLC is today offering more items than were ever produced by the original Lionel Corp. There's nothing to "miss" about Lionel (aside from an nostalgic attachment one may harbor for some earlier period) because Lionel trains are still with us in a big way.
6-10-2008 @ 11:23AM
jschmid said...
Lionel is still around and doing better than ever.
One thing that needs clarification is that The Lionel Corp. did not sell out to General Mills, they only licensed the name and right to manufacture the trains. The Lionel Corporation made good money from this license. The "license" was sold a couple of times, but not the Lionel name. Richard Kughn, then the owner of Lionel Trains, Inc., was responsible for bringing the the Lionel trademark back to Lionel Trains, Inc. in 1990, which he purchased from The Lionel Corp. for a then hefty sum. So, Lionel LLC is directly releated to The Lionel Corp.
6-18-2008 @ 12:37AM
Michael Manicone said...
Lionel trains are still around; but like everything else, they are made in China and are expensive toys on the low end of their product line to scale models that are second to none in the model railroad industry.
6-21-2008 @ 11:08AM
Carlene said...
Lionel is very much alive. My husband has a 32 train layout in our basement. Each train stops and starts on its own with relay switches. He is very famous and on the cover of the Lion Roars Volume 35. His name is Stan Roy. His layout is in many books and people from all over the country contact him. Lionel will live forever.
6-27-2008 @ 8:40PM
Tony said...
No sorry to say Lionel is gone forever, If you read the story.They were taken over by GF. See this story is about com. that were founded then sold or changed. Even Stan Roy a well know hobbiest knows this. Im a collector have a 12 line setup. And look to the future of Lionel LCC.
But sorry to say the old days are gone forever.
6-28-2008 @ 6:22PM
Phil said...
Who writes these articles. As an ardent Lionel train collector and operator I find this article full of it. As other writers have stated Lionel is still alive and well; just weathering a lawsuit by a rival company, MTH, and emerging better than ever. You guys are as bad as the newspaper reporters . Check your sources if you can read.
6-28-2008 @ 8:10PM
JAY LEONARD said...
A very important part of my childhood many moons ago was my LIONEL train set. My Dad even set up a 4x8 plywood base for me to put my layout on, and we expanded from the BASIC Oval to include swithes and a crossover. I will always have fond memories of being a LIONEL ENGINEER!
7-29-2008 @ 2:19PM
J.L. said...
I bought my husband's first train set at a Kiddie City--it was his Christmas present our first year together. Lionel is far from dead--it's never been better, in fact. The man who runs it loves his product--what other corporation can honestly make that claim? And the product never looked better, never has run better, and never was as high quality as it is today. And the Lionel Operating Train Society works itself to death bringing the love of trains to America's kids! And my husband...more than a quarter century later he still plays with toy trains, and he always will. Viva the new Lionel!
7-30-2008 @ 12:13PM
Kuffler said...
Very shoddy article. You should have gone a little beyond Wikipedia to write this. There are numerous articles and books on the subject of Lionel, more than most companies that have occupied the same space for the same amount of time.
Very weak writing, please do a bit more investigation.
8-18-2008 @ 12:55PM
Donald C. Holdaway said...
The author of this article needs to do a lot more research, as their article is full of historically inaccurate statements, and out right incorrect facts. Today, Lionel LLC is the world's largest producer of O scale and O gauge trains, from relatively low priced starter sets and rolling stock to $1500.00 extremely high detailed true scale steam locomotives. Their poroduct line dwarfs what the original Lionel company manufactured. A short time ago Neil Young the musician owned about 20% of Lionel. Recently in a bankruptcy settlement in which ALL debts were paid with interest, and a total settlement of a lawsuit by MTH Trains Inc., Lionel has emerged going full steam under a new set of owners, looking to increase mass market sales, and make Lionel a profitable business in the 22 century. A typical Lionel catalog is 1/2 inch thick! Does that sould like a company about to go under? A name slated to dissapear? It's manufacturing numbers are controlled such that if you fail to preorder an engine, you may have a hard time finding one on the open market. This is to achieve business success, without unsold inventory having to be sold at a loss. Some market savy business men are running the firm, and not necessarily as buyers would like to see it run. Also, Lionel has the premier electronic control system on the market today, called LEGACY. You run and control your trains AND YOUR ENTIRE layout (SWITCHES, LIGHTING, OPERATING ACCESSORIES, and any other electronically operated devices on your layout) with a hand held controller similar to a TV remote control. It has a built in LCD screen to provide feedback as to your current set of operating conditions. This does not sould like a vanishing company or name to me!
Check Lionel out, you may just find yourself with a new FAMILY hobby on your hands. Regards to all, Don H.