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News release from Lionel:

 

April 16, 2014, New York, NY –

 

Jerry Calabrese has stepped down as President and CEO of Lionel Electric Trains, a position he held since 2004. Calabrese’s announcement completes a transition process begun more than a year ago when Lionel consolidated operations at its Concord, N.C. facility.

 

Commenting on his time there, Calabrese said, “Lionel is one of those rare American companies that has endured for 114 years, so a decade doesn’t seem very long in its lifespan, but it’s a very long time for one person to stay at the helm, especially during such a critical period in its history.”

 

Calabrese joined Lionel in late 2004, when it was embroiled in a devastating lawsuit that threatened to destroy the company. Shortly after its successful resolution in 2007, the economy was hit by the financial meltdown that badly depressed U.S. retail sales and destabilized global manufacturing.

 

“I should probably have chosen a more tranquil decade,” Calabrese quipped. “The good news,” he added, “is that as painful as those years were, Lionel has weathered the storms and made great progress. Loyal fans and dedicated employees made it possible for Lionel to make more innovative and better quality products than it had for many years; and in 2010 we diversified our product line and our audience when we added NASCAR’s collectible race cars to our train business.

 

“There are still many challenges to be overcome, but Lionel is in a more stable and solid position than any time since before the recession. All of which makes this a good time to step down and focus on some personal interests outside of Lionel; the first of which involves another classic brand, Billboard Magazine, also owned by Lionel’s longtime owner, Guggenheim Partners.

 

“All I can say on behalf of myself and Mark Erickson, who has worked with me since the beginning and is leaving with me, is that it’s been a privilege to serve such an iconic American brand and I wish Lionel nothing but the best in its next 114 years.”

 

Last edited by Allan Miller
Original Post

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Originally Posted by johnstrains:

Interesting that it's a week before York. Wonder if Lionel is making an announcement on a successor next week? 

His successor is already in place.  Howard Hitchcock.  (He may not hold the title CEO, but it was made pretty clear I think that he was to be in charge, and mostly has been once they brought him into Lionel)

Last edited by Dave45681

He did extraordinarily well indeed, by any metric.  When he was appointed, a few folks with a longstanding animus to Lionel came up with unflattering sobriquets like "comic book man," in reference to his time at Marvel Comics.  Boy did he prove them wrong big time

 

A number of well known additions to Lionel's staff, now amongst the leaders in the industry,  occurred on his watch, such as Mike R. and Jon Z.,  and others I don't know about.  Calabrese's team unequivocally brought Lionel back to the leadership position in the three rail world,  from the standpoints of product diversity and technical innovation.  I wish him the best in the next stage of his life.

When I alluded to this on the forum a short time ago, there was strong disagreement on the subject. Now that it has come to fruition all we can do is wish Jerry Calabrese well in his future endeavors. Jerry will be known as the CEO that successfully guided Lionel though bankruptcy and onto firm financial footing. He was there when Lionel developed many innovative new products including the state-of-the-art Legacy system  Now a new era begins and perhaps a different direction will emerge. 

I agree that Lionel has come out of the last decade much stronger & better with Jerry at the helm.  The aforementioned "comic man jabs" & the argument of 3rd party TMCC development getting quashed during his time with Lionel by taking over ERR & RS4 component availability contributing to the closing of DD's doors & the rather enigmatic fading away of TAS (to be fair, the process was already in place prior to Jerry with Lionel taking over IC Controls) were well-known criticisms of his leadership.  But when it's all said & done, he was brought in to keep Lionel a going concern & maintain profitability for Guggenheim during Lionel's most challenging & troubling times in recent history.  And to that end, he and his team accomplished what he set out to do, with a continuing variety of products and technical innovations and a parts & service department that's head and shoulders above how it used to be.

 

Best of luck to him in his future endeavors. 

 

 

Interesting, while he never really connected with the "Train Guys" he did lead the company through a period most others would have declared bankruptcy and run. Not only did he save Lionel he put it way back on top of the O-Gauge world.

Since he has been pretty quiet for the last year or so, and we know that Howard Hitchcock seems to be a strong leader, I think Lionel is in great hands for the future.

Was out of the hobby when Jerry came on and was not familiar with him at all. Why someone would consider heading Marvel Comics as a put down is beyond me   Any company that has been around a long time (I read marvel comics as a boy in the early 50s) is nothing to disparage, no sir. When I had a retail hobby store back in the late 1980s - early 90's comic books were a big business. We didn't handle them directly but I knew people with comic book stores.

 

Sounds like Jerry did a great job holding Lionel together through the mess and did indeed leave it in good shape. Like Dick Kughn before him, they both brought Lionel 'back from the brink' so to speak! A lot can happen in 10 years..

Wow, this is crushing news. Jerry is leaving at a high point of the Lionel business. He has  brought so much the table and has really out performed, in my mind, many previous CEO's.

I hope the next person can grow the business and keep the product development, and quality to our expectations. Being a very difficult group that we are. 

Last edited by J Daddy
Originally Posted by johnstrains:

Interesting that it's a week before York. Wonder if Lionel is making an announcement on a successor next week? 

Yep, succeeding Jerry will be Mr Michael Wolf, who announces that effective immediately Lionel name will be obliterated and henceforth, everything including the acquired Ives and American Flyer names and products will be rebranded MTH.

Originally Posted by willygee:

What was the lawsuit all about?

Oh boy, don't ask!!  Basically as I understood it.  MTH accused Lionel of copying/using ther molds at the South Korean factory.  Lionel and MTH went round and round and then Lionel settled with MTH on some kind of terms that seems to have MTH making Lionel products now.

 

No doubt this may not be correct entirely, but there were threads on this forum running for pages discussing this point or that.  It was enough to give you an Excedrin headache trying to distill the facts.

 

Hope someone can point back to LocoLawyer postings for Willygee enlightenment.

Originally Posted by mike.caruso:

He's going to focus on other "personal interests" including Billboard Magazine??  Wow, I had no idea Lionel and Billboard were owned by the same company.  

 

- Mike

You can add the Los Angeles Dodgers, Dick Clark Productions, the Los Angeles Sparks (WNBA) and many others to the list of companies under Guggenheim Partners management.  It's a well-run organization with superb management.  Lionel is in elite company.

 

Bob Osterhoff

www.trainpaper.com

Originally Posted by willygee:

What was the lawsuit all about?

All you'd ever want to know about it.

 

MTH's side of the story

Inc. Article

US Court of Appeals Decision

 

The final word:

 

In late 2007 Lionel and MTH settled their long-term fight over trade secrets and patent infringements. In March 2008 the court approved a settlement that includes a one time cash payment to MTH. The payment will take place soon after Lionel exits bankruptcy. The details of the settlement are under court seal.

I too will miss Jerry, I think he's done a lot for Lionel, I am a bit shocked, but I guess 10 years is a good term for a CEO; Dick Kughn was at Lionel for 9-10 years? Is Howard Hitchcock the new CEO or just temporary? 

 

I think the most we can do besides wish Jerry well, is just wait and see and hope for the best.

 

edit: sorry 10, not 14 years

Last edited by Joe Sco

Wow, this is a Big Surprise to lots of Lionel Train Enthusiasts. I must Say a Big Thank You to Jerry, a man that had a Really Almost Impossible Mission to Accomplish, and he Ran the Race to the End and Lionel is the Winner. Yes, I wish him the Very Best at his new Career...Lionel will always be an American ICON. Baseball, Apple Pie, Chevrolet,

and Lionel Trains...Thank You Jerry Calabrese!!!

Originally Posted by John Korling:

I agree that Lionel has come out of the last decade much stronger & better with Jerry at the helm.  The aforementioned "comic man jabs" & the argument of 3rd party TMCC development getting quashed during his time with Lionel by taking over ERR & RS4 component availability contributing to the closing of DD's doors & the rather enigmatic fading away of TAS (to be fair, the process was already in place prior to Jerry with Lionel taking over IC Controls) were well-known criticisms of his leadership.  But when it's all said & done, he was brought in to keep Lionel a going concern & maintain profitability for Guggenheim during Lionel's most challenging & troubling times in recent history.  And to that end, he and his team accomplished what he set out to do, with a continuing variety of products and technical innovations and a parts & service department that's head and shoulders above how it used to be.

 

Best of luck to him in his future endeavors. 

 

 

Very well said John, He was the right man at the right time to get Lionel back on a finical base and back on the track, I thank him for that and wish him a great future.  

 

   I like Neil, he is a very good guy, one of the best. i Had the pleasure of meeting him and showing him the MTH Trains at the MTH booth at Cal Stewart a few years back when I was stationed in L.A, even got him to sign a MTH catalog However, my pick would be Mr. Reagan For CEO, Why, He knows the business  inside and out and he has a good sense of humor as seen at the OGR Grandstand get together at York. He has proven his skills many times with Lionel. I am very impressed with the man.

John Pignatelli

Last edited by John Pignatelli JR.
Right you are Chris...... While he MAY have been there... in 10 years & 20 York meets, I never personally saw Jerry at York even once.  Guess he didn't like having his ears chewed off by rivet counters.  This in the face in what was an informal industry tradition upheld by leaders of the hobby: Mike Wolf, Dick Maddox, Dick Kughn, Maury Klein, Jerry Williams, Joe Hayter, etc.... each of whom was glad to chat with their customers.  

Posted by cbojanower:  Interesting, while he never really connected with the "Train Guys" he led Lionel through a period most others would have declared bankruptcy & run.  Not only did he save Lionel he put it way back on top of the O-Gauge world.

 

Last edited by RadioRon
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