Toy retailer ModelZone’s stores are to begin closing over the coming weeks after administrators failed to find a buyer for the collapsed retailer.
Administrator Deloitte said it had received no offers for the business on a going concern basis and that the current operation could not be sustained.
Deloitte said it plans to implement a store closure programme, although no final decision had been made on which of its 47 stores will close. It said it had begun consultations with the company’s 355 employees.
The company made 11 head office staff redundant yesterday.
Closing down Sales willbe launched across the stores.
Joint administrator Richard Hawes said: “Despite our continued efforts, we have been unable to identify a buyer for the retail business. We would like to thank the company’s employees for their support and professionalism during this time. We continue to talk with potential buyers for Amerang Limited, the wholesale business. The situation at Modelzone does not affect the negotiations with respect to Amerang.”
ModelZone has fell into administration last month after the retailer recorded losses over the last two years due to loss-making new stores combined with growing online competition.