ModelZone administration: Hornby statement

News surrounding ModelZone entering administration is currently coming in thick and fast, so make sure you read our previous stories about gift vouchers being honoured towards 50% of the value of purchases and more details about the ModelZone administration. The latest update comes from Hornby PLC, which has made a statement to shareholders to calm any concerns that ModelZone's situation could affect Hornby. The company's share price has dropped today from 80.25 at opening to (currently) 80, a fall of 3.03%.

Here's the statement, supplied by RNS, the company news service from the London Stock Exchange.

Hornby PLC

27 June 2013

Statement Re: Modelzone

The Board of Hornby Plc notes that the retail group Modelzone has appointed Deloitte as administrator. Modelzone is an important business partner and although the news of the administration is disappointing our account management team has been well abreast of Modelzone's challenging trading situation and has been able to manage our financial exposure at an acceptable level.

Hornby has a wide, multi-channel distribution platform, which it is continuing to broaden. In the UK, Hornby supplies over 700 independent model shops, national retail chains as well as selling direct to consumers via its online platform.

A further update will be made in due course, when more details are known about the outcome of the administration.

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