Modelzone, the UK’s largest specialist model chain, has collapsed into administration.
Administrators at Deloitte have been appointed to Modelzone Holdings and some of its subsidiaries, including Amerang.
The companies are headquartered in Lancing, West Sussex. It has 47 leasehold stores while Amerang is a wholesaler of toy and hobby trade products and operates from an 80,000 sq ft warehouse.
Richard Hawes, joint administrator and partner at Deloitte, said: “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 past couple of years, which the board of directors has now concluded is unsustainable and sought the appointment of administrators.
“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.”
annabel.dixon@estatesgazette.com
