The joint administrators to Modelzone have confirmed they have received no offers for the business on a going concern basis.
Richard Michael Hawes, Nicholas Guy Edwards and Robert James Harding of the business advisory firm Deloitte, do not believe the current operation can be sustained and are proposing to implement a store closure programme.
A consultation process with employees has begun, while no final decisions on individual store closures has been taken. Modelzone currently employs 355 staff across 47 stores. This follows a further 11 redundancies within the Head Office function yesterday.
Modelzone had been generating losses over the last couple of years, burdened by leases for new stores that proved to be loss making and growth in its online competition.
Richard Hawes, Joint Administrator, commented: “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.”
There will be a number of closing down promotions across the stores to supplement those already on offer, with closures to come over the coming weeks.
The partners at Deloitte were appointed Joint Administrators to Modelzone on 26 June.