Modelzone in trouble?

[ukfox]

I have just clicked on the model zone web site, http://www.modelzone.co.uk/holding/

Looks like they have problems as the administrators have moved in.

I guess we wont be seeing any more cheap kits.

[Percymon]

Another UK model shop chain potentially closed - such a shame, since they at least tried to have a presence on quite a few high streets.

[wolfdogstinkus]

I did suggest this a while ago.

Or perhaps they will be the next high street store to close down, and trying to sell off stock before they go?

[Percymon]

more reading here.. hopefully the original founder Mordecai will buy them and run alongside Hawkins Bazaar chain.

http://www.dailymail.co.uk/money/news/article-2349798/ModelZone-collapses-administration-putting-400-jobs-risk.html?ITO=1490&ns_mchannel=rss&ns_campaign=1490

http://www.guardian.co.uk/business/2013/jun/27/modelzone-administration-toy-model-retailer-jobs-risk

knock on effect to Hornby as modelzone are a big outlet for them..

http://uk.finance.yahoo.com/news/hornby-hit-collapse-key-customer-161121554.html

[F2 Stu]

Sad times, although I can't say I'm surprised given the current climate.

Amerang's 'The Signal Box' in Rochester, Kent is also affected, I know a few down there whom hinted a couple of weeks ago all was not well.

I walked into a MZ not so long ago, the once Flagship branch in Bluewater and the place was a tip and was mainly rammed full of cheap and nasty stuff and very little quality stuff, it reminded me of what Beatties was like before they went under.

[Tamiya1/10]

Fix location retailing is extremely tough, high overheads with 50km radius customer base vs web sellers located at home with world wide customers base.

One way brick and motar operations can effect imports from web seller is lobby Custom to have all sellers declare the company on the package and must accurately disclose the transaction value. If false info are found, the package is either fine heavily and tax at double the true value or destroy / return.

Otherwise store retail will only be for items with high turnovers or hugh markups or both like jewelaries, watches, eye glasses or designer stuff / big ticket items.

In the end, it may be necessary. Competition is good only when everyone is on the same level play field.

[30YrsL8r]

Or increase your "pull" by offering value-adding services that your target market actually want:

http://www.tamiyaclub.com/forum/index.php?showtopic=69465&p=486964