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Last Modelzone stores to close 29 August 2013

Administrators of insolvent retail chain Modelzone have announced that all remaining stores are to close next month.

Modelzone entered administration on 26 June after entering into leases for new stores and facing stiff online competition.

Administrators from Deloitte confirmed yesterday (28 August) they had received no offers for the business on a going concern basis.

The last 18 stores will close in mid-September, resulting in the loss of 126 jobs. Prior to entering administration, Modelzone employed 285 staff across 47 stores.

Richard Hawes, joint administrator and partner in Deloitte’s restructuring services practice, 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.

“Once again, we would like to thank the company’s employees for their support and professionalism during this time.”

Store closures were first announced in July as administrators struggled to find a buyer for the retailer.

Modelzone’s wholesale 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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