Deloitte has this morning confirmed that it has been appointed the administrator to Modelzone and its subsidiaries, including Amerang.
Richard Hawes, joint administrator and partner in Deloitte’s restructuring services practice, 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.
"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 per cent of the purchase of goods.
Modelzone operates from 47 leasehold retail stores and online, while Amerang is a wholesaler of toy and hobby trade products. Together the group employs 400 staff.