15 July 2013
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Administrators preparing to close ModelZone stores
ModelZone administration: closures to follow after no buyer found for business. ...
Deloitte, the joint administrators to ModelZone, has confirmed it has received no offers for the business on a going concern basis. As such, it does not believe the current operation can be sustained and is proposing to implement a store closure programme.
A consultation process with employees has begun, while no final decisions on individual store closures has been taken. ModelZone currently employs 355 employees across 47 stores. This follows a further 11 redundancies within the Head Office function last week. ModelZone had been generating losses over the last couple of years, burdened by leases for new stores that proved to be loss making and growth in its online competition.
Richard Hawes, joint administrator, commented: “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. 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.”
There will be a number of closing down promotions across the stores to supplement those already on offer, with closures to come over the coming weeks.
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A consultation process with employees has begun, while no final decisions on individual store closures has been taken. ModelZone currently employs 355 employees across 47 stores. This follows a further 11 redundancies within the Head Office function last week. ModelZone had been generating losses over the last couple of years, burdened by leases for new stores that proved to be loss making and growth in its online competition.
Richard Hawes, joint administrator, commented: “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. 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.”
There will be a number of closing down promotions across the stores to supplement those already on offer, with closures to come over the coming weeks.
Remember, to get the latest collecting news delivered direct to your inbox every two weeks, sign up for our e-newsletter.
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