Hornby has appointed current group finance director Steve Cooke as its new chief executive.
The company is now looking to appoint an interim finance director.
"I am delighted to announce that Steve will be Hornby's new chief executive," said executive chairman, Roger Canham.
"He has made a significant contribution to the group since he joined and I am confident that he will lead the recovery in the financial performance and delivering value for our shareholders."
Steve Cooke added: "Hornby has an excellent portfolio of much loved brands. I am excited by the prospect of leading the business and I am looking forward to the challenge of driving Hornby forward, building on the progress that has already been made in transforming and modernising the group."