Modelzone

Modelzone is a British retail brand associated with scale models, model-making products, toys, and related hobby merchandise. The name developed from a specialist model-shop business that was originally incorporated as Model Aircraft (Bournemouth) Ltd in 1937. The business initially operated from a single Brighton store and later expanded through the acquisition and development of additional specialist shops. During the earlier phase of its history, stores operated under the Model Aerodrome name and concentrated primarily on model aircraft and related products. The business changed its name to Modelzone in 1999 after expanding its assortment beyond aircraft models to include products such as Scalextric slot-car systems and Corgi collectibles. This wider proposition positioned the company as a national specialist retailer for models, toys, collectibles, radio-control products, and hobby merchandise. Modelzone also acquired selected stores formerly operated by Beatties, another established British model-shop chain that had entered administration under its parent company. A management buyout backed by Lloyds Development Capital was completed in July 2009. The transaction involved £5.6 million of investment from LDC and a further £3.6 million of funding over three years, according to the cited reference material. Following the transaction, the company pursued rapid store expansion. Fifteen branches were opened between 2010 and 2012, including locations in Scotland and Wales. By the end of 2012, the chain had reached 47 stores and employed approximately 385 people, making it the largest model retailer in the United Kingdom by the time of its later administration. The expansion placed substantial pressure on the business. Modelzone's own reported assessment was that the infrastructure and management capability were inadequate for sustainable growth and that sales and profit assumptions for many of the newer stores had been unrealistic. Increasing online competition and the cost of leases on underperforming new locations further weakened the company. Modelzone entered administration on 26 June 2013, with Deloitte appointed as joint administrator for Modelzone and related companies, including its distribution business Amerang. Store closures followed in stages during the summer of 2013. Administrators ultimately stated that no viable going-concern offer had been received for the retail business, and the remaining 18 shops were scheduled to close by mid-September 2013. Amerang, the group's wholesale and distribution arm, was sold separately to Ripmax in July 2013 through a newly incorporated acquisition vehicle. The transaction preserved the jobs of 18 remaining Amerang employees, but it did not rescue the Modelzone retail chain. The original retail company therefore ceased independent high-street trading in 2013. In October 2013, WHSmith announced that it had acquired the Modelzone name. Rather than rebuilding the former chain, WHSmith used the name as a specialist product label within selected existing WHSmith stores and on its online retail operation. By late November 2013, ten WHSmith stores were reported to be carrying Modelzone-branded products, and the online range was subsequently used for products from brands including Airfix, Hornby, Corgi, and Scalextric. The post-2013 Modelzone entity is consequently best understood as a WHSmith-owned retail brand or shop-in-shop concept rather than as the former independent chain. Current trading scope, store count, and operating status are not established by the supplied reference material.

Modelzone traces its corporate origins to Model Aircraft (Bournemouth) Ltd, incorporated on 8 November 1937. The early business operated a Brighton store focused on model aircraft and related specialist merchandise. After a change of ownership several decades later, the Brighton shop was used as a showroom for imported prestige model ranges. The new owners expanded the operation by acquiring or opening further specialist shops in Crawley, Eastbourne, Guildford, and Maidstone. These stores operated under the Model Aerodrome name. The company introduced a computerised stock-control system in the mid-1990s and added branches in Croydon and Plymouth in 1995 and 1996. In March 1999, following the opening of an eighth branch at Bluewater in Kent, the business broadened its assortment to include Scalextric and Corgi products. The wider range prompted the adoption of the Modelzone name. The company subsequently acquired a number of stores previously associated with Beatties, a well-known model-shop chain whose parent company, ERA Group, had entered administration. In July 2009, Modelzone completed a management buyout led by chief executive David Mordecai and non-executive chairman Terry Norris, with backing from Lloyds Development Capital. The investment was reported as £5.6 million, supported by an additional £3.6 million of funding over the following three years. The investors had initially been cautious because of the credit crisis and declining retail sales, but a strong Christmas trading period and internal reforms improved their assessment of the business. The new ownership pursued an ambitious expansion programme. Fifteen stores opened between 2010 and 2012, including the company's first locations in Scotland and Wales. By the end of 2012 the chain had grown to 47 branches. The expansion, however, produced an operating footprint that the business could not support profitably. Modelzone later acknowledged that its infrastructure and management capacity were insufficient and that the expected sales and profits from the newer stores had been too optimistic. Online competition and expensive, underperforming leases compounded the problem. Modelzone entered administration on 26 June 2013. Deloitte partners Richard Michael Hawes, Nicholas Guy Edwards, and Robert James Harding were appointed joint administrators for Modelzone Holdings Limited, The Amerang Group Limited, Modelzone Limited, and Amerang Limited. At the time, the retailer had 47 branches and approximately 385 employees. The administration announcement was followed by the suspension of online trading and a programme of store closures. A reported proposal associated with former owner David Mordecai did not result in a completed rescue of the chain. Five stores closed by 5 August 2013, followed by ten more by 13 August. A further ten branches were announced for closure on 19 August. On 28 August, the administrators stated that they had received no viable offer for the business as a going concern. The remaining 18 stores were therefore scheduled to close by mid-September, resulting in the end of Modelzone's independent retail operation. The administration also affected Amerang, the group's wholesale and distribution arm. Ripmax acquired Amerang in July 2013 through a newly incorporated company, safeguarding the positions of its 18 remaining employees. This transaction separated the distribution business from the failed retail chain. WHSmith acquired the Modelzone name in October 2013. It used the name in a substantially different format: products were placed in selected existing WHSmith stores and offered online rather than through a revived chain of dedicated specialist shops. Ten WHSmith branches were carrying Modelzone-branded products by late November 2013. The post-administration range included Airfix, Hornby, Corgi, and Scalextric products. The supplied sources do not establish the brand's current store network, ownership changes after the WHSmith acquisition, or whether the label remains actively marketed today.

• 2013

  Retail company enters administration

  [1]Modelzoneen.wikipedia.org

  Modelzone entered administration on 26 June 2013, beginning a staged closure of its dedicated stores.

• 2013

  Amerang sold to Ripmax

  [1]Modelzoneen.wikipedia.org

  The group's distribution arm Amerang was sold separately to Ripmax in July 2013.

• 2013

  Dedicated store chain closes

  [1]Modelzoneen.wikipedia.org

  Administrators announced in August that the remaining 18 stores would close by mid-September after no viable going-concern offer emerged.

• 2013

  Brand acquired by WHSmith

  [1]Modelzoneen.wikipedia.org

  WHSmith acquired the Modelzone name and began using it for specialist product ranges in existing stores and online.

• 2012

  Chain reaches 47 stores

  [1]Modelzoneen.wikipedia.org

  The chain reached 47 stores after its rapid expansion into additional UK regions.

• 2010

  Expansion programme begins

  [1]Modelzoneen.wikipedia.org

  Modelzone began a store-expansion plan that ultimately added 15 locations between 2010 and 2012.

• 2009

  Management buyout completed

  [1]Modelzoneen.wikipedia.org

  A management buyout led by David Mordecai and Terry Norris was backed by Lloyds Development Capital.

• 1999

  Modelzone name adopted

  [1]Modelzoneen.wikipedia.org

  After broadening its assortment to include Scalextric and Corgi, the company changed its name from Model Aerodrome to Modelzone.

• 1996

  Plymouth branch opened

  [1]Modelzoneen.wikipedia.org

  A Plymouth location was added to the growing specialist model-shop network.

• 1995

  Croydon branch opened

  [1]Modelzoneen.wikipedia.org

  The business opened a store in Croydon during its expansion under the Model Aerodrome identity.

• 1937

  Original company incorporated

  [1]Modelzoneen.wikipedia.org

  Model Aircraft (Bournemouth) Ltd was incorporated on 8 November 1937, establishing the corporate roots of the later Modelzone business.

A specialist model and hobby retail proposition serving collectors, enthusiasts, families, and gift buyers. Before 2013 it operated as a dedicated high-street model-shop chain; under WHSmith it was repositioned as a branded assortment sold through selected general merchandise stores and online.

• Model-making

  Scale models

  Scale models were the core of Modelzone's proposition. The range covered model subjects and kits intended for collectors, hobbyists, and gift buyers, supported by accessories and related modelling supplies. The business began with a particular emphasis on aircraft models and later broadened into vehicles, railways, and other collectible subjects.

• Plastic model kits

  Airfix

  Airfix model kits formed part of the range sold under the WHSmith-operated Modelzone label after 2013. These products are associated with buildable plastic scale models, especially aircraft, vehicles, ships, and figures, and fit the brand's post-administration specialist hobby assortment.

• Model railways

  Hornby

  Hornby products were among the principal model-railway products associated with Modelzone. Before the 2013 administration, Hornby maintained a longstanding commercial relationship with the retailer and sold stock through concessions in Modelzone stores. WHSmith later included Hornby products in the online Modelzone assortment.

• Die-cast collectibles · 1999

  Corgi

  Corgi products were added when the company broadened its range in the late 1990s. The line complemented traditional model kits with ready-made die-cast vehicles and collectible items, helping Modelzone appeal to collectors and gift purchasers as well as hands-on hobbyists.

• Slot-car racing · 1999

  Scalextric

  Scalextric slot-car racing systems became part of Modelzone's expanded product offer from 1999. The products added an interactive toy and hobby dimension to the retailer's original aircraft-model focus and remained among the named ranges sold through the later WHSmith-operated label.

• 2013

  Administration and closure of the dedicated retail chainOther

  Background

  The company faced declining profitability, online competition, insufficient infrastructure, and unprofitable leases on newer stores.

  Action taken

  Modelzone entered administration on 26 June 2013. Deloitte closed stores in stages and announced that the final 18 branches would shut after no viable going-concern offer was received.

  Aftermath

  The independent high-street retail chain ceased trading during September 2013.

  • Hornby — Hornby acknowledged that Modelzone was an important business partner and said it was managing its financial exposure while relying on a broader multichannel distribution network.

  Source

• 2013

  WHSmith acquires the Modelzone brandM&A

  Background

  After the original retailer failed, the Modelzone name retained value as a specialist product proposition.

  Action taken

  WHSmith acquired the name and introduced Modelzone-branded model products through selected existing WHSmith stores and its online channel.

  Aftermath

  The brand continued in a shop-in-shop and e-commerce format rather than as a standalone chain. Ten WHSmith stores were reported to carry the range by late November 2013.

  Source

• 2010

  Rapid national store expansionStrategy

  Background

  Following the management buyout, the company pursued growth through a larger physical-store network.

  Action taken

  Modelzone opened 15 stores between 2010 and 2012, including branches in Scotland and Wales.

  Aftermath

  The chain reached 47 stores by the end of 2012, but later reported that the newer locations had unrealistic sales and profit expectations.

  Source

• 2009

  Management buyout backed by Lloyds Development CapitalM&A

  Background

  The business sought new investment during a difficult retail and credit environment.

  Action taken

  A management buyout led by David Mordecai and Terry Norris was completed with LDC investment reported at £5.6 million, plus further funding over three years.

  Aftermath

  The new ownership initiated a rapid store-expansion programme between 2010 and 2012.

  Investment and additional funding. £5.6 million investment plus £3.6 million further funding over three years (2009-2012)

  Source

• 1999

  Broaden assortment and adopt the Modelzone nameStrategy

  Background

  The business expanded beyond its earlier model-aircraft focus by adding Scalextric and Corgi products and needed a name reflecting the wider retail offer.

  Action taken

  The company changed its trading name from Model Aerodrome to Modelzone.

  Aftermath

  The new identity supported a broader specialist model, toy, and collectibles proposition.

  Source

• 2013

  Modelzone enters administration[1]Modelzoneen.wikipedia.org

  Bankruptcy

  Modelzone announced that it had entered administration on 26 June 2013. Deloitte was appointed joint administrator for the retail company and associated group entities.

• 2013

  Amerang sold to Ripmax during Modelzone administration[1]Modelzoneen.wikipedia.org

  M&A

  The group's wholesale and distribution arm, Amerang, was sold to competitor Ripmax in July 2013, preserving the jobs of 18 remaining employees in that business.

• 2013

  Administrators announce further Modelzone store closures[1]Modelzoneen.wikipedia.org

  Bankruptcy

  Administrators progressively closed branches during August 2013 as they sought, unsuccessfully, to find a buyer for some or all of the retail chain.

• 2013

  WHSmith acquires the Modelzone name[1]Modelzoneen.wikipedia.org

  M&A

  WHSmith announced that it had acquired the Modelzone brand and would sell model products through selected existing stores and its online operation.

1. 1Modelzoneen.wikipedia.org