Amerang Limited, the wholesale arm of insolvent model retailer Modelzone Limited, has been sold out of administration.
The business and assets of Amerang have been purchased by Ripmax Limited via a newly incorporated company, Pinehurst 104 Limited which will trade under the Amerang name.
Richard Hawes, Nick Edwards, and Rob Harding of Deloitte were appointed as joint administrators to Modelzone Limited and Amerang Limited on 26 June 2013.
Hawes, partner at Deloitte, said: ““We have secured a buyer for Amerang, which continues to be an attractive brand given the strength of its customer and supplier base and its reputation in the market.”
Ripmax is a competitor in the sector and the sale will see Amerang continue as a going concern. All remaining 18 staff at Amerang will transfer to the new company.
Last week administrators announced proposals to implement a store closure programme for Modelzone’s 47 retail stores.
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.
Modelzone currently employs a total of 335 staff across 47 stores. 11 redundancies from the company’s head office function have already been confirmed.
The administrators have also confirmed Modelzone gift vouchers will still be accepted, but only towards 50% of purchase prices.