ModelZone stores to close after no buyer is found for the business
Administrators for ModelZone, the collapsed toy and model retailer, are proposing to implement a store closure programme after being unable to find a buyer for the business.
Administrator Deloitte said it did not believe that ModelZone’s current operation could be sustained and has therefore begun a consultation process with employees. However, no final decision on individual store closures has been taken.
Modelzone currently employs 355 staff across 47 stores. The news follows 11 redundancies within ModelZone’s head office function yesterday.
Richard Hawes, joint administrator, said: “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.”
The administrators added that 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.
