Hornby forced to write off £200,000 debt to ModelZone

30 July 2013
imports_CCGB_hornbymodelzone_50875.jpg Hornby forced to write off £200,000 debt to ModelZone
ModelZone administration latest shows ModelZone's collapse leaves debts of £11m. ...
Hornby is among the companies and lenders owed a total of £11m by ModelZone, after it entered into administration in June. According to reports from administrator Deloitte, more than £9m was owed to its lenders Lloyds Banking Group, while a further £1.5 was owed to suppliers and landlords - who stand to recover nothing.

Among those affected is Hornby, which was ModelZone's biggest unsecured creditor. The company has announced it's had to write off around £200,000 debts to the failed retailer but does not expect the closure to have an impact on its business overall. Deloitte has said it hopes to recover around £4m for creditors through the sale of ModelZone stock (most stores are currently slashing prices by up to 50%) but that still leaves a black hole of nearly £7m.

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