Remaining 18 Modelzone stores to close
Administrators for the collapsed Modelzone toy and model chain are to close all of the remaining 18 stores in mid-September with the loss of 126 jobs.
The news comes after no offers were received for the business as a going concern.
Modelzone fell into administration in June at which time it operated 47 stores with 355 employees. Although historically profitable, the company faced stiff online competition in recent years and also suffered losses from leases taken on new stores.
Richard Hawes, joint administrator and partner in Deloitte’s restructuring services practice, said: “We sought to find a potential buyer for some or all of the stores, but unfortunately no viable offers have come in since our appointment two months ago.
“Once again, we would like to thank the company’s employees for their support and professionalism during this time.”
Founded 26 years ago, Modelzone was the UK’s largest specialist model chain.
In July, the administrators announced that Modelzone’s wholesale arm Amerang had been purchased by Ripmax Limited via a newly incorporated company, Pinehurst 104 Limited which would trade under the Amerang name.
