Penn Line's final building was just two blocks away from the Franklin Street location on Washington Street. It offered the much needed space for the expanded model train product line. It took a little longer than expected because Penn Line used government "help."  Now Penn Line was really ready to expand. However there was a problem.  By this time the total market for train sets was actually declining.  The problem of trying to expand in a contracting market would have been well know to any MBA but Penn Line was not run by MBA's.
    The baby boom supplied a lot of "potential" customers. However these youngsters were experiencing a lot of demands for their time and their parents' money. First there was television. Not only did television take time that otherwise might have been used for model railroading, it also bombarded the viewer with endless commercials for other toys that took time that otherwise might have been used for model railroading.  Television also brought renewed interest in sports which in turn brought new demands for organized youth sports which also took time that otherwise might have been used for model railroading. You get the idea. Other train companies were experiencing the same problem. A. C. Gilbert Company started to reduce the American Flyer line in 1962 and was out of business by 1967.