I have just seen that Model Zone has gone into administration. Very sad but typical for these times. Once again high rents are highlighted as a problem. More here.

http://money.aol.co.uk/2013/06/28/toy-chain-falls-into-administration/

Yes its so sad ...but they are having a sale to clear everything. Last time i was in it was twenty percent off kits and fifty off paints etc. Its like being a vulture but hey we tried to keep em open just bad management from the top. see whats in there. Alfie

"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..."

..Not totally true, as it was a combination of the insistency of their bank to increase their profitability , by expanding, and poor management in this issue....

This caused an over extension by way of leases on the new stores that they couldn't possibly have hoped to recoup

Be careful what you buy though. Was in on saturday and bought a hasagawa combo kit (FW190) ,decal were missing. Phoned up and asked for help non given. I know they are in trouble but >>> So be careful . Just a warning. Alfie

its defiantly sad times now that they are in administration, however i spoke to the store near me and there's a fair few people interested in the franchise. fingers crossed though. however i think its time i restock my paint collection with 20% of everything in the stores near me

It would appear that, contrary to their earlier statement, the administrators have allowed Amerang to be split off as a separate sale item...

Hi there

It good that Amerang have been saved, but the latest report I've read paints a very gloomy picture of the overall situation:

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10208880/ModelZone-collapse-leaves-debts-of-11m.html

The point in the "comments" about the possible knock-on effect on other, smaller, retailers is ominous and something I hadn't considered.

All the best

Rowan