BusinessBusiness RecoveryDeloitte administrators close remaining Modelzone stores

Deloitte administrators close remaining Modelzone stores

Administrators close all 47 stores and make 340 staff redundant, however, they manage to sell subsidiary saving 18 jobs

Deloitte administrators close remaining Modelzone stores

DELOITTE ADMINISTRATORS are to close the remaining Modelzone stores making 126 staff redundant after they were unable to find a buyer.

Richard Hawes, Nick Edwards and Rob Harding, partners at Deloitte, were appointed joint administrators to Modelzone Holdings (Modelzone) and certain of its subsidiaries, including Amerang on 26 June.

At the time of their appointment, Modelzone, headquartered in West Sussex, had 358 employees across 47 stores and its head office.

Although the model craft business was profitable, the company entered into new leases for stores that proved loss making in recent years with the board having to call in the administrators.

The Deloitte administrators said they had sought buyers but no viable offers have been made. Unfortunately 340 staff were made redundant with the last store closures to be made by mid-September.

The subsidiary Amerang, a wholesaler of toy and hobby trade products, was sold as a going concern in July to former rival Ripmax. 

Hawes 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.

“Modelzone has been generating losses over the past few years, largely through an increase in online competition and having taken leases on new stores that proved to be unprofitable.

 

Related Articles

Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

4m Emma Smith, Managing Editor
Kingston Smith liquidators to distribute millions to Bond International Software PLC members

Accounting Firms Kingston Smith liquidators to distribute millions to Bond International Software PLC members

10m Stephanie Wix, Writer
SFP sells off Pixel Projects and saves all staff

Business Recovery SFP sells off Pixel Projects and saves all staff

11m Stephanie Wix, Writer
Smith & Williamson appointed administrators of 4Children

Accounting Firms Smith & Williamson appointed administrators of 4Children

1y Richard Crump, Writer
Big Four insolvency specialist joins Gibson Hewitt

Business Recovery Big Four insolvency specialist joins Gibson Hewitt

1y Richard Crump, Writer
Administrators from KPMG appointed to City Motor Holdings

Business Recovery Administrators from KPMG appointed to City Motor Holdings

1y Richard Crump, Writer
Johnston Carmichael appointed as joint administrators for Axon Well

Accounting Firms Johnston Carmichael appointed as joint administrators for Axon Well

1y Stephanie Wix, Writer
Begbies Traynor appointed administrators of William Anelay

Accounting Firms Begbies Traynor appointed administrators of William Anelay

1y Richard Crump, Writer