Administrators confirm that remaining ModelZone stores will close

Deloitte, the joint administrators for ModelZone, has confirmed that the remaining 18 stores still open are set to close, after the administrators received no offers for the business on a going concern basis. The final shops will shut for the last time in the middle of September and, unfortunately, this will result in a further 126 job losses.

Richard Hawes, Joint Administrator and partner in Deloitte’s restructuring services practice, comments: “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.” When Deloitte was appointed administrator, ModelZone employed 385 employees across 47 stores and its head office.

Remember, to get the latest collecting news delivered direct to your inbox every two weeks, sign up for our e-newsletter.