Deloitte to close remaining 18 ModelZone stores next month - ToyNews

Deloitte to close remaining 18 ModelZone stores next month

126 job losses imminent after administrator fails to receive any offers for the business.
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The joint administrators of ModelZone have confirmed that all remaining stores are set to close by mid September.

The conclusion to shut the remaining 18 stores was reached when Deloitte received no offers for the business. The decision will result in a further 126 job losses.

Richard Hawes, joint administrator and partner in Deloitte's restructuring services practice, said: "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."

Richard Hawes, Nick Edwards and Rob Harding, partners at Deloitte, the business advisory firm, were appointed joint administrators to ModelZone Holdings Limited and certain of its subsidiaries, including Amerang Limited on June 26th this year.

Amerang was purchased by Ripmax Limited, through the newly incorporated company Pinehurst 104 Limited in July.

Upon Deloitte's appointment, ModelZone employed 385 employees across 47 stores and its head office.

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