ROCO Declares Bankruptcy

Received the following via email.

Roco, a large Austrian model railroad-manufacturing firm with products
in HO and N scales, has declared bankruptcy. For many years Roco's main
operations were in Salzburg, Austria, but it recently moved its
operations to a new factory in Hallein (in the Salzburg area, 370
employees). Roco also has facilities in Gloggnitz, Austria (200
employees), and in Slovakia (230 employees).

The European train market has been in a slump since the German economy
weakened, and several of Roco's competitors are now offering lower-cost
items made in China. The German train market has declined from sales of
204 million Euros in 2002 to 181 million in 2004. Germany is Roco's
largest market (approximately 65 percent of Roco's sales are in
Germany). The firm, which according to Austrian sources has debts of
approximately 24 million Euros and losses of approximately 5 million
Euros per year, will remain in operation under receivership. Leopold
Heher will serve as receiver. Employees have not been paid their wages
for June or their vacation pay as of today, July 15. Substantial layoffs are expected as the firm reorganizes.