The Lionel toy stores (doing business as Lionel Kiddie City, Lionel Playworld, and, until 1990, Lionel Toy Warehouse) were American toy store chains under the ownership of

Lionel Corp. Lionel Corporation was an American toy manufacturer and holding company of retailers that had been in business for over 120 years. It was founded as an electrical novelties company. Lionel specialized in various products throughout its existence. ...

History

Kiddie City Toy Stores were started in the 1960s. By the early 1980s, Lionel operated 150 stores, under the names Lionel Kiddie City, Lionel Playworld, and Lionel Toy Warehouse (rebranded as Lionel Kiddie City in 1990). For a time it was the second-largest toy store chain in the United States. Lionel ran into financial trouble during the early 1980s recession and filed for Chapter 11 bankruptcy in February 1982. After reducing itself in size to 55 stores, it emerged from bankruptcy in September 1985. By 1991, the chain grew to 100 stores and was the fourth-largest toy retailer in the country, but once again ran into trouble due to a combination of factors. In 1989 Robert I. Toussie L.P., a partnership of several retail executives, attempted to buy the company. Lionel resisted, and the fight drained the company of cash. Meanwhile, non-specialty discount stores expanded their toy sections and undercut the prices of specialty toy chains. Additionally, Lionel found it difficult to compete on price with the larger

Toys "R" Us Toys "R" Us is an American toy, clothing, and baby product retailer owned by Tru Kids (doing business as Tru Kids Brands) and various others. The company was founded in 1957; its first store was built in April 1948, with its headquarters loc ...

, and the chain attempted to expand too rapidly in a weakened economy. After several successive unprofitable quarters, it filed for Chapter 11 bankruptcy on June 14, 1991. In 1992 Lionel attempted to reverse its fortunes by merging with the bankrupt

Child World Child World was an American toy retailer founded in 1962. It grew to 182 sites and revenues of $830 million before failing in 1992. It was known for the distinctive stylised castle store exterior adopted after its 1977 purchase of the Children' ...

, the United States' #3 toy retailer, but was unable to secure financing. By February 1993 Lionel had closed all but 29 stores in six states, concentrating on the markets of

Philadelphia Philadelphia, often called Philly, is the List of municipalities in Pennsylvania#Municipalities, largest city in the Commonwealth (U.S. state), Commonwealth of Pennsylvania, the List of United States cities by population, sixth-largest city i ...

, central

New Jersey New Jersey is a state in the Mid-Atlantic and Northeastern regions of the United States. It is bordered on the north and east by the state of New York; on the east, southeast, and south by the Atlantic Ocean; on the west by the Delaware ...

Baltimore Baltimore ( , locally: or ) is the List of municipalities in Maryland, most populous city in the U.S. state of Maryland, fourth most populous city in the Mid-Atlantic (United States), Mid-Atlantic, and List of United States cities by popula ...

Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...

, Cleveland, Ohio and south

Florida Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and to ...

. Unable to reach an agreement for reorganization with its creditors, on June 2, Lionel announced its intention to liquidate all of its stores and go out of business. The Lionel trademarks were purchased by Richard Kughn, a real estate magnate who had bought the Lionel model train line from

General Mills General Mills, Inc., is an American multinational manufacturer and marketer of branded processed consumer foods sold through retail stores. Founded on the banks of the Mississippi River at Saint Anthony Falls in Minneapolis, the company orig ...

in 1986.

Slogans

* Shop Lionel (Kiddie City/Playworld), toy capital of the world! * Let Lionel (Kiddie City/Playworld) turn that frown… upside down! * Playworld, A World of Toys. Great for Girls, and Great for Boys. Playworld, Where Prices Go, So Low, Low, Low, Low, Low. (NY stores)

References

Defunct toy manufacturers Defunct companies based in New Jersey Companies based in New Jersey Lionel, LLC Retail companies established in 1969 Retail companies disestablished in 1993 Companies that filed for Chapter 11 bankruptcy in 1982 Companies that filed for Chapter 11 bankruptcy in 1991 Toy retailers of the United States {{Toy-stub