Lionel to Close Michigan Operations

Model train maker Lionel will close its manufacturing operations in Macomb County, Mich., by the end of August, because of increased costs and competition. About 325 workers will be laid off initially, but some will be offered new positions. The company’s Michigan operation employs about 550 people who are represented by Local 417 of the United Auto Workers. Founded in 1900, Lionel had reported revenue of more than $33 million by 1953. But the company faltered in the 1960s and model trains became less popular. The current owners are New York investment firm Wellspring Associates, musician Neil Young and Richard Kughn, chairman emeritus and prior owner of Lionel Trains Inc.