OTHER NEWS - June 12, 1992

Child World Confirms Talks With Lionel: Child World, the third-largest chain of toy stores in the country, said it is negotiating with Lionel Corp. about a merger. Child World will close its 71 stores “within a short time” if an agreement cannot be reached, spokesman Gregory William Miller said. That would eliminate about 4,000 full- and part-time jobs. The company has already closed 54 stores. Both Child World and Lionel have filed for Chapter 11 federal bankruptcy protection--Lionel a year ago and Child World last month--so the proposed merger would be subject to court approval. It would create a chain with a total of 135 stores in the Northeast, Midwest and South, “and significant economies of scale would be immediately achieved,” Miller said.