Modelzone enters administration
High street hobby retailer Modelzone Limited has entered into administration, endangering around 400 jobs.
The West Sussex-based firm operates from 47 leasehold stores and online and also operates toy and hobby wholesaler subsidiary Amerang Limited.
Administrators Richard Hawes, Nick Edwards and Rob Harding from Deloitte have been appointed to the firm.
Mr Hawes, Joint Administrator and partner in Deloitte’s restructuring services practice, said: “Modelzone has historically been profitable, however in recent years the company entered into leases for new stores that proved to be loss making. This, coupled with the growth in online competition, has resulted in Modelzone generating losses over the last couple of years, which the Board of Directors has now concluded is unsustainable and sought the appointment of administrators.
“We are working closely with customers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors.
“Amerang is a profitable business, but the directors were forced to seek the appointment of administrators to protect the value of the business following the administration of Modelzone, its sister company. Amerang remains profitable and we will continue to trade as normal while we seek a buyer for all or parts of the business as a going concern.”
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