Modelzone going into administration

[fgwrich]

Sadly today seems to be another dark day for those in retail jobs on the high street with another 4 major companies announced to be moving into administration. This time, it includes one that I think would affect the majority of us into railways and railway modelling, and my former employers - ModelZone. I know Modelzones prices have always been unfortunately on the steeper side, but another factor that's probably not be helping Modelzone's has been the constant supply problems coming from the direction of Hornby and it's production problems in China and India (For those of you unaware of some of these, it's even led to Hornby bringing back nearly all paint manufacturing in the Humbrol range from India to North London and some airfix production is also heading to Sussex).

http://www.telegraph.co.uk/finance/...rk-and-ModelZone-head-for-administration.html

2,000 jobs at risk as Dwell, Internacionale, Ark and ModelZone head for administration


Internacionale, ModelZone and Ark have filed a notice to appoint administrators, while Dwell, the furniture retailer, has confirmed Duff & Phelps as administrators.

The administrations emerged just hours after retailers were due to pay rent for the next three months on Monday, the quarterly rent day.

The retail failures are another setback for the high street, which has already seen HMV, Blockbuster and Jessops collapse this year.

Clothing group Internacionale, which has almost 150 stores, has filed a notice to appoint Ernst & Young as administrator, while ModelZone has filed that it will appoint Deloitte.

ModelZone has 47 stores according to its latest accounts and is majority owned by the private equity arm of Lloyds Banking Group, Lloyds Development Capital.

Jonathan De Mello at property agent CBRE said the administrations show some high streets are in “terminal decline”. He added: “For every retail administration we have seen, there are many other otherwise healthy retailers looking to downsize their store portfolios in all but the best retail centres, given changing consumer habits and the consequent redundancy of some of our high streets.”

On top of facing store closures, landlords will be furious that they face missing out on a quarter’s rent. Ian Fletcher, at the British Property Federation, said: “No one’s asking for favours here, just fairness to be injected into the process where retailers pay for what they use irrespective of the timing of an administration.”

All parties declined to comment.

 

[SouthEastern-465]

I nipped into work today (I work as a retail assistant in Modelzone) an it appears theirs a good possibility Modelzone could be going into administration soon.

I read the e-mail head office had sent an its not looking good at all! Hopefully a new buyer can be found! Being made redundant is a pain in the arse, but a shop like ours you don't see to often, pretty bad news really

 

[theblackwatch]

It has been mentioned in The Telegraph - see http://www.telegraph.co.uk/finance/...rk-and-ModelZone-head-for-administration.html

We have a local Modelzone, and although it is not normally the cheapest place, they do sometimes have one or two bargains. I've also been impressed that some of the staff actually seem to know about what they are selling too - I overheard one of the lads behind the counter telling a woman that the Mk.3 coach she was looking at was for the Pretendolino. I'll miss the place if it goes.

 

[SouthEastern-465]

It has been mentioned in The Telegraph - see http://www.telegraph.co.uk/finance/...rk-and-ModelZone-head-for-administration.html

We have a local Modelzone, and although it is not normally the cheapest place, they do sometimes have one or two bargains. I've also been impressed that some of the staff actually seem to know about what they are selling too - I overheard one of the lads behind the counter telling a woman that the Mk.3 coach she was looking at was for the Pretendolino. I'll miss the place if it goes.

Yeah the staff who are taken on usually have an expertise in some area of Transport, I'm the railwayman along where I work an we have other staff who are experts on aviation an busses to!

Its really not good news at all!

 

[Class172]

I hope that it doesn't go into administration. I always enjoy going to the Birmingham store (which is my nearest) and have always found staff more than happy to help: once I had brought a few strips of code 55 rail for my model railway, which isn't the most practical thing to carry around and get on the train with, so the cashier reused an old packaging box that I could take them home in.

 

[adtrainz]

Officially announced, website closed...

http://www.modelzone.co.uk/holding/

 

[Class172]

Oh no… After antics closed in Worcester, it seems I may have no major model shops near me soon.

It seems I may have to make a dedicated trip to Birmingham if all the stock starts getting sold off.

 

[SouthEastern-465]

I'm just hoping someone buys us out! Hate the thought of being made redundant, as well as the fact theres no other specialist stores like us

 

[chris89]

It seems I may have to make a dedicated trip to Birmingham if all the stock starts getting sold off.

Like wise for me.

Always when in Birmingham/ Glasgow pop into the Modelzone stores and got quite a few good deals including the lovely Wooden boxed S&Djr 7f No 88.

Only model shop in B'ham will be Ian Allan (Got quite a few things from there as well)

Edit: @SouthEastern-465 All the best for you as well.

Chris

 

[gingerheid]

I nipped into work today (I work as a retail assistant in Modelzone)

Hope all goes well for you

 

[Heinz57]

Wow this is certainly some bad news. ModelZone is the only proper high street multiple model shop that I know of (the rest are independents).

I've always liked ModelZone, it’s a good shop to have a walk around, reasonable prices and the staff are very friendly, helpful and willing to chat. All of which is important for any retailer.

SouthEastern-456 - All the best to you my friend, I hope it all works out for you.

EDIT - SPAG

 

[David Goddard]

Sad news indeed. Absolutely loved it when they opened up in Reading and always make a point of visiting the shop when we go to Kingston, Birmingham and Bluewater.
Really hope they find a buyer who will turn them round and keep them going.
Plus I've got some things on order!

 

[D365]

Damn, what a blow. If the website is redirecting to the holding page, it certainly doesn't look good. Have stores in Peterborough and Cambridge, many seem[ed] to take shop in both. Good luck to the firm, might be an opportunity for me to get that scale engine model I've always looked at?! If it's still around, sorry, my dad and I would miss it :/

 

[Cruithne3753]

Not enough N-gauge for me, in the Bristol branch at least!

 

[43021HST]

I nipped into work today (I work as a retail assistant in Modelzone)

Retail assistant? You mean till jockey?
Ah the reliability of the private sector.

Sorry about the bad news mate, back on the dole then with all of their wonderful 'work for your benefits' schemes.
Only been in a job center once, it was the grimmest experience of my life. I'm determined to never have to go in one again, my message is to stay in education as long as you can, even if you don't gain any worthwhile qualifications, at least you get a few more years of 'protection' from the harshness of the rat race.

 

[EM2]

I see the holding message also mentions Amerang, which will have implications for the wider modelling fraternity, as they wholesale a lot of plastic kits, tools and other supplies.

 

[SouthEastern-465]

Retail assistant? You mean till jockey?
Ah the reliability of the private sector.

Sorry about the bad news mate, back on the dole then with all of their wonderful 'work for your benefits' schemes.
Only been in a job center once, it was the grimmest experience of my life. I'm determined to never have to go in one again, my message is to stay in education as long as you can, even if you don't gain any worthwhile qualifications, at least you get a few more years of 'protection' from the harshness of the rat race.

If I'm a till jockey that must make you a very useful periscope when you were at Dominos fella!

Rumours are floating around that Hornby may be showing an interest in buying us out as a majority of Modelzones stock are from Hornby! That's only a fart in the bath an literally just a rumour at the moment an nothing else, let's just hope someone in the next 10 days decides to buy Modelzone out

 

[507 001]

Spoke to the staff in the Liverpool store today, they aren't panicking (yet!) as there are takeover talks in progress apparently.

I'm not surprised to be honest, I've always found model zone to be quite expensive and the Liverpool store always seems to be empty, which again is not surprising considering there is a rather famous, much larger and much cheaper purveyor of model railway supplies just a bus ride away!

 

[455driver]

As part of the problems are Hornby not supplying stock it does make me wonder whether it was a bit of a set up to get their hands on the stores!

I suppose as long as you stay in employment it doesnt really matter who holds the purse strings.
Fingers crossed for you all.

 

[fgwrich]

As part of the problems are Hornby not supplying stock it does make me wonder whether it was a bit of a set up to get their hands on the stores!

I suppose as long as you stay in employment it doesnt really matter who holds the purse strings.
Fingers crossed for you all.

Interestingly, the main problem for Modelzone is actually the stores themselves. I'll dig out the financial webpage I was looking at last night, but the business itself has been pretty good and profitable for a good few years, only starting to suffer loses in the past couple of years to now - The Amerang Business is a profitable business. The problem has been the higher costs of leasing the stores combined with new stores that have proven to be loss making which has caused the administrators to be called in. Cut the loss making stores and it should... in theory be a considerable help. Deloittes opinion on Modelzone / Amerang really is that it had expanded too quickly.

 

[Class172]

I know that over the past year, the Birmingham has suffered from some major leaking from the roof, resulting in most of the railway stock being stored away, which cannot help sales at all.

 

[TheEdge]

Sad but not surprising. The one in Norwich is nice, staff are lovely, pleasant store but the prices are mad. In a pure model railway view the range is fairly poor, if it isn't Hornby it isn't there.

Last time I was there there were 3 Bachmann locos available, a minuscule amount of N and a handfull of Peco and Gaugemaster. Pretty much nothing else.

 

[507 001]

As part of the problems are Hornby not supplying stock it does make me wonder whether it was a bit of a set up to get their hands on the stores!

I suppose as long as you stay in employment it doesnt really matter who holds the purse strings.
Fingers crossed for you all.

That sounds like a distinct possibility!

Its not just modelzone that this is affecting though, a friend of mine owns a model shop near Warrington, he was saying that its not that there isnt any stock coming through, its more that there isn't anything new coming through. The same goes for Bachmann.


If modelzone does end up being owned by Hornby I think it would be disastrous for the hobby, because why would hornby want anybody else selling their stuff?

 

[fgwrich]

That sounds like a distinct possibility!

Its not just modelzone that this is affecting though, a friend of mine owns a model shop near Warrington, he was saying that its not that there isnt any stock coming through, its more that there isn't anything new coming through. The same goes for Bachmann.


If modelzone does end up being owned by Hornby I think it would be disastrous for the hobby, because why would hornby want anybody else selling their stuff?

Considering Modelzone stocks more than just Hornby brands (Hornby, Airfix, Humbrol and Corgi) I doubt that it'd be a secret bid by Hornby to starve Modelzone & retailers of it's stock just to get their hands on it - Hornby have enough problems to sort out of their own accord, including the stock / supply chain. The main problem and reason why Hornby's stock hasn't been coming through lately can range from a variety of factors, mostly ranging around factory production slot times, quality control (something the new management in Hornby I gather are rather keen to reign in), shipping times and UK distribution. Then again, Hornby haven't exactly helped themselves over the past few years by cosying up and 'concessionising' Modelzone and other large retailers and almost ignoring the smaller ones. This in turn led to things like this years '2BIL' Fiasco where they grossly underestimated demand for the unit, and almost lost control with its stock supplying - allowing the likes of MZ and retailers to over order on 2'BIL's before haphazardly over sending some to it's 'concessions' and under stocking normal retailers. As Modelzone is one of Hornby's key concessions, and MZ doesn't actually own the Hornby stock in their stores (Hornby does), then I cant see why Hornby would starve it's retailers just to attempt a take over.

...But... going to the pricing structure for a moment. Things may well be about to change. With new management in Hornby, they have just announced (today) a wave of new RRP Price reductions. So we shall see, Modelzone and Amerang I've got a good feeling about, Deloitte seem pretty positive that they can make things work and keep the business flowing again.

 

[Heinz57]

My bigest problem with ModelZone is to do with the stores themselves;

They still use individual price tickets on items (there seems to be a growing trend now to use shelf edge tickets as apposed to ones on each item) Which isn't very neat, plus you can easily rip the box if you need to take the ticket off.
Plus the actual 'facing' standards are quite poor, shelving seems messy with some areas looking like there is little organisation, and walking around the Nottingham store the other day all the model kits were stacked flat so you couldn't actualy see what the kit was, just the H+S warnings on the side.

To a consumer this may not sound like much, or be important. But I think it actualy is. If the store is neat and tidy, it makes it look better and alows the customer to browse and find products easyer. Improving their shopping experience and makes them want to return. I've been in shops before and found them to be messy and not easy to find things - so I havn't returned.

With regards to range at MZ, I think it varies. The Derby store seems to have loads of Bachmann stuff in. Nottingham seems to have an equal mix. Visit Medowhall however, they have very little model railway stuff, and most of whats there is Hornby.

 

[fgwrich]

My bigest problem with ModelZone is to do with the stores themselves;

They still use individual price tickets on items (there seems to be a growing trend now to use shelf edge tickets as apposed to ones on each item) Which isn't very neat, plus you can easily rip the box if you need to take the ticket off.
Plus the actual 'facing' standards are quite poor, shelving seems messy with some areas looking like there is little organisation, and walking around the Nottingham store the other day all the model kits were stacked flat so you couldn't actualy see what the kit was, just the H+S warnings on the side.

To a consumer this may not sound like much, or be important. But I think it actualy is. If the store is neat and tidy, it makes it look better and alows the customer to browse and find products easyer. Improving their shopping experience and makes them want to return. I've been in shops before and found them to be messy and not easy to find things - so I havn't returned.

With regards to range at MZ, I think it varies. The Derby store seems to have loads of Bachmann stuff in. Nottingham seems to have an equal mix. Visit Medowhall however, they have very little model railway stuff, and most of whats there is Hornby.

I know what you mean. When I worked in our local store, I essentially had a free hand when it came to the model rail and bus section. The then manager said to me one day, 'I want you to make the train and bus cabinets look as best as you can possibly make them - and you can use anything in the shop'. So I organised all the steam models into regions, with all the Thomas models at the bottom so the kids could see them (and beg their parents!), then LNER / Eastern, London Midland / Midland, Southern, Great Western and BR Standard at the top - partly because there wasn't enough to warrant a full shelf. The diesel side came with BR Green, BR Blue, 1980/1990s, Modern and Modern High Speed at the top, complete with (thanks to a burst bag of ballast and Bachmann Scenecraft / Hornby Skaledale) a small BR Midlands based diesel depot set in the 1970s. As for N (The most fiddlest!) it was all sorted in a similar fashion. And you know what, it looked great. It helped our customers because they could match the right loco to the right stock, the depot gave them an idea of how they could model their models and I always took pride in those cabinets, regularly updating them and 'shunting' a few models in the depot. Every day I kept the facing of the models on the shelves up and always made sure the models were showing - rather than just the end labels.

It is a shame to see how things have gone since, the depots gone, the organisation has gone and now you just see a load of models in the cabinets gathering dust and just almost randomly placed - some off the track, others with the tenders switched round etc. Some stores I've been in looked good, others had models just in the cabinets or on the shelves with no one around and no interest or product knowledge shown. Pity really, if you want to shift your products then you really need to know your products, what your selling and what the product can go with / compatible with. Something im finding, not just in Modelzone but more commonly across the retail world (with the exception of some businesses!) - I know, im still in it!

 

[SouthEastern-465]

Considering Modelzone stocks more than just Hornby brands (Hornby, Airfix, Humbrol and Corgi) I doubt that it'd be a secret bid by Hornby to starve Modelzone & retailers of it's stock just to get their hands on it - Hornby have enough problems to sort out of their own accord, including the stock / supply chain. The main problem and reason why Hornby's stock hasn't been coming through lately can range from a variety of factors, mostly ranging around factory production slot times, quality control (something the new management in Hornby I gather are rather keen to reign in), shipping times and UK distribution. Then again, Hornby haven't exactly helped themselves over the past few years by cosying up and 'concessionising' Modelzone and other large retailers and almost ignoring the smaller ones. This in turn led to things like this years '2BIL' Fiasco where they grossly underestimated demand for the unit, and almost lost control with its stock supplying - allowing the likes of MZ and retailers to over order on 2'BIL's before haphazardly over sending some to it's 'concessions' and under stocking normal retailers. As Modelzone is one of Hornby's key concessions, and MZ doesn't actually own the Hornby stock in their stores (Hornby does), then I cant see why Hornby would starve it's retailers just to attempt a take over.

...But... going to the pricing structure for a moment. Things may well be about to change. With new management in Hornby, they have just announced (today) a wave of new RRP Price reductions. So we shall see, Modelzone and Amerang I've got a good feeling about, Deloitte seem pretty positive that they can make things work and keep the business flowing again.

In actual fact Hornby (trains), Airfix, Scalextric an Corgi are all owned by Hornby now, so thereotically 80% of our stock is Hornby's products. Though personally I've seen Modelzone going towards the toy end of the market by selling Lego, an other kids brands an to be fair I've hardly sold any in my time there, the main products that sell are Hornby ones espicially the airfix kits.

As mentioned before though Hornbys late releases of models in all there ranges are really not helping, we could give a date the product was due for release to customers an when the due date was there, the product still hadn't arrived leaving a lot of people unsurprisingly annoyed!

There's an official notice that the original founder of Modelzone who than went on to start Hawkins Bazaar is showing a keen interest in the business at the moment, so let's just keep our fingers crossed!

 

[crewmeal]

Sad to see yet another retailer close down. The one in Birmingham will be shutting up shop in the near future. However there are some reasonable discounts to be had. 20% on Bachmann stock, however nothing on Hornby!

 

[theblackwatch]

Sad to see yet another retailer close down. The one in Birmingham will be shutting up shop in the near future. However there are some reasonable discounts to be had. 20% on Bachmann stock, however nothing on Hornby!

Nothing on Hornby here (at Harrogate) either. Perhaps the Hornby stock is all on 'sale or return' and will be going back to the manufacturer?

 

[Johnuk123]

http://www.deloitte.com/view/en_GB/...d&utm_campaign=Feed:+DeloitteUK+(Deloitte+UK)

The Joint Administrators of Modelzone have announced that all remaining stores are set to close

Shame but not surprising really, at least it will make space for another charity shop !