Lionel Trains in Chapter 11

Lionel, a famous name in American model trains for more than a century, said Monday that it was forced to file for bankruptcy protection after a court ruled against it in the alleged misappropriation of a competitor’s train designs by a subcontractor.

Lionel, based in Chesterfield, Mich., intends to appeal the $41- million judgment against the company, Chief Executive Jerry Calabrese said.

The suit was originally brought by Mike’s Train House in South Korea, where it won a small judgment. It then was brought to a U.S. court.

Lionel, which has been making model trains and accessories since 1900, said it had filed for Chapter 11 protection in the Bankruptcy Court of the Southern District of New York.

Lionel’s day-to-day operations will continue as usual, including meeting all merchandise shipping obligations for the holiday selling period and rolling out new products on schedule, the company said.

Lionel has been making train sets, complete with tracks and landscapes, for generations of children and model railway enthusiasts.