Kallisti Posted June 26, 2013 Share Posted June 26, 2013 This news really saddens me, it seems impossible for bricks and mortar stores to compete as viable businesses nowadays, especially in the more "niche" markets like ours Link to comment Share on other sites More sharing options...
Sgt.Squarehead Posted June 26, 2013 Share Posted June 26, 2013 Neither surprised nor terribly bothered.....Never actually set foot in Modelzone as there isn't one in the area. Stores like these contributed to closing down all the traditional LMS in my area and now it's their turn.....C'est la vie! 2 Link to comment Share on other sites More sharing options...
Geoff_B Posted June 26, 2013 Share Posted June 26, 2013 Found this interesting comment which sums up their problems by their former Chief Exec ModelZone founder and current chief executive of Hawkins Bazaar David Mordecai said: “It is owned by private equity and I don’t think they understood the niche market. Before I left a year ago, ModelZone was doing well and continuing to show like-for-like growth. Since then the owners thought they could go mass market but it meant they didn’t offer model enthusiasts the product they wanted.” So hopefully they may survive by cutting shops and focusing again on what they are supposed to, buts thats for the Administrators to work out once they are formally appointed. Link to comment Share on other sites More sharing options...
Scarlet Posted June 26, 2013 Share Posted June 26, 2013 The one in Chester is my last link with Arts & Crafts... a model shop I grew up with. They moved premises, then sold out to MZ some years back Great service when it was the Arts and Crafts Studio. All the staff in a shirt and tie and when you bought a kit they carefully wrapped it in their branded paper like a Christmas present. Link to comment Share on other sites More sharing options...
Rob P Posted June 26, 2013 Share Posted June 26, 2013 I thought Modelzone was the retail outlet for Amerang. It used to be, but a management buy out in 2009 saw it become a stand alone company. Link to comment Share on other sites More sharing options...
Creative Models Ltd Posted June 26, 2013 Share Posted June 26, 2013 It used to be, but a management buy out in 2009 saw it become a stand alone company. Actually Modelzone Ltd and Amerang Ltd are both subsidiary companies in the same group. The ultimate parent company of the group is Modelzone Holdings Ltd. Link to comment Share on other sites More sharing options...
Julien Posted June 26, 2013 Share Posted June 26, 2013 Does that mean they are both in administration? Julien Link to comment Share on other sites More sharing options...
Mike Posted June 26, 2013 Author Share Posted June 26, 2013 I think Amerang would have been mentioned too - let's not get ahead of ourselves Link to comment Share on other sites More sharing options...
Pat C Posted June 26, 2013 Share Posted June 26, 2013 Does that mean they are both in administration? Julien I would't have to mean that Julien as they would be sister companies with a common owner, and distinct legal entities. But if MZ Ltd is in trouble I doubt that will be very good for Amerang. Pat Link to comment Share on other sites More sharing options...
sennapod Posted June 26, 2013 Share Posted June 26, 2013 (edited) Two thoughts... A. It's ironic on the same day that Britmodeller announces its 11000th member. So this proves there is * some * interest In modeling out there. B. Whilst they may (I stress,may) have failed at bricks and mortar retailing, they've also failed on the internet side with a woeful website (most things out of stock whilst it's still in the stores),Useless search facility and mostly standard RRP prices. Not even the usual 10% off offered by Wonderland,Relish etc. However HMV, Game and Jessops have made it back albeit with a smaller presence so maybe some hope - although both the product and target-market demographic are a bit different. Here's hoping. Edited June 26, 2013 by sennapod Link to comment Share on other sites More sharing options...
Courtney Posted June 26, 2013 Share Posted June 26, 2013 Website is down "On 25 June 2013, Richard Michael Hawes, Nicholas Guy Edwards and Robert James Harding of Deloitte LLP were appointed Joint Administrators of Modelzone Holdings Limited, The Amerang Group Limited, Modelzone Limited and Amerang Limited (together the "Companies"). The affairs, business and property of the Companies are being managed by the Joint Administrators. The Joint Administrators act as agents of the Companies only and contract without personal liability. The Joint Administrators are authorised by the Institute of Chartered Accountants in England and Wales (ICAEW). All licensed Insolvency Practitioners of Deloitte LLP are licensed in the UK" Link to comment Share on other sites More sharing options...
Courtney Posted June 26, 2013 Share Posted June 26, 2013 ......and I made an order last night! Link to comment Share on other sites More sharing options...
Mike Posted June 26, 2013 Author Share Posted June 26, 2013 Oh poo... looks like Amerang were included, as their website says the same. Jiminy! Link to comment Share on other sites More sharing options...
Creative Models Ltd Posted June 26, 2013 Share Posted June 26, 2013 Oh poo... looks like Amerang were included, as their website says the same. Jiminy! Unfortunately in the the same group and all included in the assets of the parent I believe. It means we could lose both a customer and a supplier depending on the outcome Link to comment Share on other sites More sharing options...
Mike Posted June 26, 2013 Author Share Posted June 26, 2013 Not the best news we could have asked for, is it? Cue a short term glut of Hasegawa kits, then a shortage until the new importer gets their feet under the table. Will they be cheaper or more expensive? We'll have to wait & see. Link to comment Share on other sites More sharing options...
Giorgio N Posted June 26, 2013 Share Posted June 26, 2013 Will the shops be immediately affected ? My guess is they shouldn't , as stopping trading wouldn't do any good, but I'd rather be sure before I plan a detour during my next trip in the UK to visit one... Link to comment Share on other sites More sharing options...
Silver Fox Posted June 26, 2013 Share Posted June 26, 2013 No sign of anything different in Meadowhall today. Open and unpacking stock. Link to comment Share on other sites More sharing options...
Mike Posted June 26, 2013 Author Share Posted June 26, 2013 I think it'll depend on the Administrators' plan of action. I'd maybe expect a few days of closed doors initially, with a possible re-opening if they decide that selling them as a going concern is the best course. If they decide to asset strip to feed the creditors, then the shops might close for good at any point. Of course, I'm just postulating, because we truly don't know at this juncture. Does anyone know if they were run as shops owned and run by the chain, or whether they were franchises? It'd never crossed my mind until now. Link to comment Share on other sites More sharing options...
Creative Models Ltd Posted June 26, 2013 Share Posted June 26, 2013 They run all the shops. They have a central buying policy and listed 450 staff on there accounts which would be a lot to squeeze into their head office if they didnt run the shops. Link to comment Share on other sites More sharing options...
Max Headroom Posted June 26, 2013 Share Posted June 26, 2013 So where will we buy exhorbitently priced Hasegawa kits from now then? I hope Modelzone comes out of this in some recognisable shape. I don't see any natural buyers for the chain - too big for Hannants to absorb? Trevor Link to comment Share on other sites More sharing options...
gregg136 Posted June 26, 2013 Share Posted June 26, 2013 Apparently MZ's founder is interested in buying it back. Only source is in Retail week.It'll be interesting to see what happens but I'm massively saddened by it, the lads in the Sunderland store are absolutely fantastic. Link to comment Share on other sites More sharing options...
grahamwalker Posted June 26, 2013 Share Posted June 26, 2013 Don't mean the model shops will go, depends what the trouble is .Remember Airfix the model brand have gone under before 2 or 3 times and each time it has been the parent company.and not Airfix. So there hope yet Link to comment Share on other sites More sharing options...
Hardtarget Posted June 26, 2013 Share Posted June 26, 2013 Im glad i didnt put an order in today as they had a few sale items in my basket from my last online visit. I do hope the shops will remain but under a different ownership. Link to comment Share on other sites More sharing options...
keefr22 Posted June 26, 2013 Share Posted June 26, 2013 Not the best news we could have asked for, is it? Cue a short term glut of Hasegawa kits, then a shortage until the new importer gets their feet under the table. Will they be cheaper or more expensive? We'll have to wait & see. Hasegawa kits more expensive? Could that be possible....??!! I'd intended to pre-order some of the to be re-released Fujimi kits they listed a week or so ago, but they'd all gone by the time I got around to it. Glad I dawdled now.... Link to comment Share on other sites More sharing options...
PhoenixII Posted June 26, 2013 Share Posted June 26, 2013 This news really saddens me, it seems impossible for bricks and mortar stores to compete as viable businesses nowadays, especially in the more "niche" markets like ours Yet in the U.S. they manage to keep quite a few of their LMS's going, wonder where it went wrong in the U.K.? Remembering the haemorrhage of LMS,s started in the late 60's, early 70's. Number of thoughts, 1. Lack of stock knowledge. 2. Lack of customer service. 3. Lack of stock. 4. Lack of training. 5. Don't give a damn attitude. 6. Poor management. 7. Greedy people at the top (knowing now the principle shareholders are a banking group !!! ) 8. or simply, too many lookers and not enough buyers? 1 Link to comment Share on other sites More sharing options...
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