@Jim R. posted:
Gotta disagree with this. K-Line’s sales weren’t a problem, especially given the lower price point that attracted buyers. And lots of people were raving about K-Line as the products were being released. But tooling debt and the steeper Lionel lawsuit settlement could not be overcome by decent sales. Perhaps the price simply was too low for the product line.
Agreed. As this thread has shown, plenty of people were buying K-Line's products (as further indicated by their stated annual sales of $7-$8 million). It appears the larger problem was the company's efforts, both licit (low margin, higher quality offerings) and illicit (wrongful acquisition of intellectual property), to step up from their niche as a seller of low-end, low-cost trains into the same sales strata as MTH and Lionel.
Former University of Oklahoma football coach Barry Switzer once defended his decision to stick with the Wishbone offense by saying, "You gotta dance with the one that brung you." K-Line didn't do that…