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Modelzone administration costs creditors £11m 30 July 2013

Collapsed toy and model retail chain Modelzone Limited owed approximately £11m to lenders and suppliers, according to a report from company directors.

The statement of affairs, published on Companies House, said Modelzone owed over £9m to Lloyds Banking Group, including its investment arm LDC.

Modelzone also owed suppliers approximately £2m, including Hornby, the model train manufacturer, which has already written off debts of £200,000.

Administrators estimate in the report that £4m will be recovered for creditors through the sale of the company’s stock. However, this would still leave creditors with more than £7m of debts unpaid.

Modelzone, which operated 47 stores throughout the UK, entered administration in late June after entering into leases for new stores that proved to be loss-making.

On 15 July, administrator Richard Hawes of Deloitte announced store closures would begin as no buyer for the company had emerged.

He 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.”

Modelzone subsidiary Amerang Limited was sold out of administration on 18 July to Ripmax Limited via a newly incorporated company, Pinehurst 104 Limited, which will trade under the Amerang name.

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