Norwich store open as usual as Modelzone calls in the administrators
- Credit: Archant
Online competition and costly new leases were today blamed for the demise of Modelzone after directors called in administrators.
The fate of the West-Sussex firm which has 47 stores including Castle Mall in Norwich, and its 400 staff now rests with Deloitte, which is seeking to sell the business as a going concern. Amerang Ltd, a profitable sister toy and hobby wholesale business will continue to trade as normal. Gift vouchers will be honoured towards 50pc of the purchase of goods.
Staff in Norwich said the store remained open as usual and said queries should be referred to the firm's customer services department.
Richard Hawes, joint administrator, 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 last couple of years, which the Board of Directors has now concluded is unsustainable and sought the appointment of administrators.'