Administrators of retail chain Modelzone Limited have confirmed there have been no bids for the insolvent company, and have proposed the start of store closures.
Richard Hawes, Nick Edwards, and Rob Harding of Deloitte were appointed as joint administrators on 26 June 2013.
Hawes said: “Despite our continued efforts, we have been unable to identify a buyer for the retail business. We would like to thank the company’s employees for their support and professionalism during this time.”
Specialist retailer Modelzone, as well as subsidiary Amerang Limited, collapsed into administration after entering into leases for new stores and facing stiff online competition.
The company had been generating losses over several years, burdened by leases for new stores that proved to be loss making.
Store closures are expected to start over the coming weeks, although no final decision has been made on which individual stores will close.
Hawes said: “We continue to talk with potential buyers for Amerang Limited, the wholesale business. The situation at Modelzone does not affect the negotiations with respect to Amerang.”
Modelzone currently employs a total of 335 staff across 47 stores. 11 redundancies from the company’s head office function have already been confirmed.
There will be a number of closing down promotions across the stores to supplement those already on offer.
The administrators have also confirmed Modelzone gift vouchers will still be accepted, but only towards 50% of purchase prices.