27 June 2013
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ModelZone administration: vouchers honoured towards 50% the value of purchases
Plus, website taken offline while administrators work to sell company. ...
We've just received an update regarding the ModelZone administration situation and at the bottom of the press release from joint administrators Deloitte there's a note saying that gift vouchers are still being accepted but can only be used towards 50% of the value of purchases, e.g. if you've got a £20 gift voucher you can only use it if the item costs more than £40. Although this isn't ideal, many stores that enter administration immediately stop accepting any gift vouchers - just look at what happened with HMV.
Here's the full press release from Deloitte and we'll keep you updated about any further news: Richard Hawes, Nick Edwards and Rob Harding, partners at Deloitte, have been appointed Joint Administrators to Modelzone Holdings Limited (Modelzone) and certain of its subsidiaries, including Amerang Limited (Amerang). Modelzone is the UK’s largest specialist model chain with over 26 years of knowledge and experience in the model market.
The Companies are headquartered in Lancing, West Sussex. Modelzone Limited operates from 47 leasehold retail stores and online. Amerang Limited is a wholesaler of toy and hobby trade products and operates from an 37,500 sq ft warehouse. Together the group employs approximately 400 staff.
Richard Hawes, Joint Administrator and partner in Deloitte’s restructuring services practice, comments: “Modelzone has historically been profitable, however in recent years the company entered into leases for new stores that proved to be loss making. This, coupled with the growth in online competition, has resulted in Modelzone generating losses over the last couple of years, which the Board of Directors has now concluded is unsustainable and sought the appointment of administrators.
“We are working closely with customers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors.
“Amerang is a profitable business, but the directors were forced to seek the appointment of administrators to protect the value of the business following the administration of Modelzone, its sister company. Amerang remains profitable and we will continue to trade as normal while we seek a buyer for all or parts of the business as a going concern.”
During this time gift vouchers will be honoured towards 50% of the purchase of goods.
Read our previous story for more details about ModelZone entering administration. Remember, to get the latest collecting news delivered direct to your inbox every two weeks, sign up for our e-newsletter.
Here's the full press release from Deloitte and we'll keep you updated about any further news: Richard Hawes, Nick Edwards and Rob Harding, partners at Deloitte, have been appointed Joint Administrators to Modelzone Holdings Limited (Modelzone) and certain of its subsidiaries, including Amerang Limited (Amerang). Modelzone is the UK’s largest specialist model chain with over 26 years of knowledge and experience in the model market.
The Companies are headquartered in Lancing, West Sussex. Modelzone Limited operates from 47 leasehold retail stores and online. Amerang Limited is a wholesaler of toy and hobby trade products and operates from an 37,500 sq ft warehouse. Together the group employs approximately 400 staff.
Richard Hawes, Joint Administrator and partner in Deloitte’s restructuring services practice, comments: “Modelzone has historically been profitable, however in recent years the company entered into leases for new stores that proved to be loss making. This, coupled with the growth in online competition, has resulted in Modelzone generating losses over the last couple of years, which the Board of Directors has now concluded is unsustainable and sought the appointment of administrators.
“We are working closely with customers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors.
“Amerang is a profitable business, but the directors were forced to seek the appointment of administrators to protect the value of the business following the administration of Modelzone, its sister company. Amerang remains profitable and we will continue to trade as normal while we seek a buyer for all or parts of the business as a going concern.”
During this time gift vouchers will be honoured towards 50% of the purchase of goods.
Read our previous story for more details about ModelZone entering administration. 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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