ModelZone seeking Administration

[70E]

My local MZ is in Reading. The staff have always been polite and helpful.

 

However, I tended to only ever purchase sale items or low cost items such as paint etc, on the odd occassion plastruct at RRP or a wagon if it worked out cheaper without postage costs.

 

Although I have never been interested in BOGOF helicopters  it will be a shame if they disapear from the high street ( as I will have to find somewher else to browse during my lunch breaks!) , if they can be saved they need to seriously look at their pricing structuring and be much more competitive ,  Let's hope?

[Stevelewis]

Helicopters??  MAPLIN  were  selling  some  reduced  price a few weeks  back  not  sure if  this  was  just  a clearance , of slow  selling  stock, or whether  they are  regular  stock lines

 

I refer  to Maplin Wrexham

[smoppett]

There was a brief mention on Radio 5live's money programme this morning of MZ prblems, but they described it as a clothes shop chain. No wonder they are in trouble. I pop into the Newcastle shop from time to time and get bits and bobs. They sometimes have good reductions on Evergreen plastics.

 

That is correct, and suggestions that the shelf stock was running low may have been from cashflow problems. But if I was group finance director I would be using the cash generated as best I can, so the Modelzone part may be in a better or worse financial position than the rest of the group-we just don't know.

 

What I hope is that other parts of the group dragged Modelzone down, and there is a white knight prepared to save it, dropping the stores with the worst rents.

 

Simon

[stephennicholson]

Some more information here:

 

http://www.insolvencynews.com/article/15482/corporate/deloitte-picks-up-retail-case

[trisonic]

If as we suggested and the article above seems to confirm it's high lease price MZ stores that have caused the problem. That hits on the head the dreams that plenty of shops will still be available to buy that odd pot of paint! 

 

If it was me being interested I'd keep the name, get rid of the stores and set up a Hattons style operation in a less expensive part of the country. The only question would be -

 

Can the UK afford more than one Hattons?

 

Probably not is the answer, I fear.

 

Best, Pete.

[Fat Controller]

Helicopters??  MAPLIN  were  selling  some  reduced  price a few weeks  back  not  sure if  this  was  just  a clearance , of slow  selling  stock, or whether  they are  regular  stock lines

 

I refer  to Maplin Wrexham

Probably just gone out of fashion.

[smoppett]

Correct me if I'm wrong but if ModelZone declare bankruptcy then it doesn't matter who "owns" the stock in store prior to that  it then  becomes part of the receivership? Hornby could still lose out or have to buy them back (at pennies on the pound, though, obviously).

 

If it does end up with just three large operators in the UK then I can't see them allowing prices to remain low with little competition.

 

Best, Pete.

 

It is standard terms and conditions that goods can be reclaimed until paid for. It is easier with brand names, so Hornby can identify their products and Bachmann can identify theirs.

 

However, Administrators are getting tougher on this and are insisting on proving that the 10 Tornado locomotives on this invoice are the same as the 7 remaining on that shelf. Without serial numbers, that can become a shouting match.

 

Simon

[steveb860]

OK, so now it seems Signal Box is down (maybe). I will phone tomorrow. I have several Hornby items on pre-order. As we know Hornby items can be rare as hen's teeth, but if SB go down and their orders are reallocated to other retailers operating a reserve list, then I have totally lost out. Among other items is the Uncoverted SR Maunsell third; given the scarcity of the BR version, I had banked on SB being a large reliable retailer and able to supply.

Interestingly is there any liabilty for failure to supply a pre-order if its not paid for, but if failure to supply means the customer misses out?

 

Do I blame MZ or Hornby?

I haven't read further than this post yet ,so I don't know if anyone else has commented, but you are worrying about missing out on pre-orders of models when peoples jobs are at risk!!. Come on, a bit more sensitivity would be in order. These people might well be members on here and be reading this.

[Budgie]

Popped in to Modelzone Bromley this morning. No sign of price reductions on any of their stuff, and the helicopters are now Buy one, get another for half price. There were four staff in the shop all involved in a discussion as far away from the till as they could get. I had a good look a their railway stuff, which seemed to be a smaller stock than the last time I was in there, and then slowly walked out. Nobody came over to ask if I wanted any help.

[Coombe Barton]

Let's just point out that The Signal Box, Anstey, Leicestershire - http://www.signal-box.com/ - is (as far as I know) still in business and has no part of this. Good shop. 

[G-BOAF]

^{Sorry, Yes my post was a bit insnsitive. Clearly prioritise peopel's jobs. However if the Adminstrators handle the redistribution of sock badly (i.e. just cancel outstanding orders), then the real benificiaries will be Ebay-merchants who can snap up previously allocated stock. Hardly fair. Anway, According to Signal Box, they are trading as normal, and still taking in new stock when it becomes available.}

^{Clearly priority is jobs, but I guess my anger should rightfully be directed at Hornby for over-rationing supplies, meaning there is no room for REAL ENTHUSIASTS to compensate forunfortunate business errors on the part of suppliers.}

 

^{Interesting that Hornby's share price does not appear impacted by the MZ news.}

[great central]

At  the risk of getting a bit controversial, I'm not surprised and also not particularly sympathetic towards the company. All sympathy to the staff who face losing their jobs, having been in that situation myself in the past.

The shop in Nottingham was one of the TMC ones originally, they did their best to take business from the various local shops, having their prices always at RRP or slightly above but with the 'offer' to undercut any other local shop. 

I have never bought anything from them, the closest I got was some plastic strip a few months back, went to the 'local' shop it was over £1 cheaper per pack.

Having some idea what their premises cost in the Broad Marsh centre, which incidentally is now about 40% vacant, I have thought from day 1 that the costs would be unsustainable. Also having an idea of their profit margins having been a retailer myself for a while, I knew they would have to shift a heck of a lot of stuff to cover those costs. 

The shop was never that busy, and I was put off when it first opened by a member of staff telling me that kit/scratch builders were still using bits of dowel for loco chimneys and such like, not likely to make me think he had any idea whatsoever about what he was trying to sell!

My business was sent under by a rival moving in on a relatively limited market, video rental, who used their other shops to support theirs until I could no longer keep going. Their prices then increased to the same level as mine had been.

The whole concept of small video shops was then pretty much killed off by the film companies 'getting into bed' with Blockbuster and the big retailers, Tesco and such. They strangled the small shops by offering huge discounts to the big chains but nothing to the 'little guy'. I can't help but wonder if this wasn't heading down a similar road with Hornby supplying MZ to the exclusion of the smaller retailers?

[cary hill]

Let's just point out that The Signal Box, Anstey, Leicestershire - http://www.signal-box.com/ - is (as far as I know) still in business and has no part of this. Good shop. 

 

Popped in there last week and certainly still had plenty of stock and was reasonably busy for a midweek afternoon.

[pete_mcfarlane]

Having some idea what their premises cost in the Broad Marsh centre, which incidentally is now about 40% vacant, I have thought from day 1 that the costs would be unsustainable. Also having an idea of their profit margins having been a retailer myself for a while, I knew they would have to shift a heck of a lot of stuff to cover those costs. 

The shop was never that busy, and I was put off when it first opened by a member of staff telling me that kit/scratch builders were still using bits of dowel for loco chimneys and such like, not likely to make me think he had any idea whatsoever about what he was trying to sell!

 

It was still open at lunchtime, with a similar huddle of staff in one corner as reported with another store. But other than that and a letter from the Adiminstrators taped to the shop window there was no sign of any change. They still haven't shifteed the Scalectrix Velodrome sets, even at £20.

 

It's a very oddly sited shop, tucked away in an upstairs corner of a half empty and very downmarket shopping centre. The Broadmarsh is no longer the kind of destination you'd visit on a shopping trip - most of it's business must be locals from the council estates or office workers on their lunchbreaks.

[Richard E]

Hornby won't be affected. All Hornby products sold in MZ were owned by Hornby as their sales were run as concessions. Effectively Hornby rented a small bit of the sales floor ...

[oreamnos]

Let's just point out that The Signal Box, Anstey, Leicestershire - http://www.signal-box.com/ - is (as far as I know) still in business and has no part of this. Good shop. 

 

I'm curious.  Having just looked at its website (albeit briefly) for the very first time as a consequence of the link being posted here, it seems its business is stricly transport DVDs, CDs, and publications.  Does the physical shop stock models and modeling supplies?

 

Matt

[scorpion]

The Signal Box  being discussed in this thread is in Rochester, nothing to do with Anstey

[G-BOAF]

Hornby won't be affected. All Hornby products sold in MZ were owned by Hornby as their sales were run as concessions. Effectively Hornby rented a small bit of the sales floor ...

 

Indeed, but that's 47 outlets for Hornby protentially in trouble, which could have a not insignificant impact, particualry at the 'new customer' end of the market. Also Hornby had been placing strong emphaiss on 'concessions' in its recent business model. Clearly there is little financial risk to Hornby in terms of stock, but in terms of future sales and business model....

[7013]

Interesting that if they are a Hornby concession and have no choice but to sell at RRP this strategy by Hornby appears to have failed. I suspect that Hornby would find it difficult to get another outlet to sign up under those terms and thus face a dilemma. They will labour on trying to push stuff at the RRP, or they will start loosing customers and be forced into taking the same route as other manufacturers and take a cut in prices.

Have only used Modelzone once or twice but no real complaints about service, would never buy my rolling stock from them though, far cheaper elsewhere.

[martin_wynne]

I'm curious.  Having just looked at its website (albeit briefly) for the very first time as a consequence of the link being posted here, it seems its business is stricly transport DVDs, CDs, and publications.  Does the physical shop stock models and modeling supplies?

 

Hi Matt,

 

The second paragraph on the front page at http://www.signal-box.com says:

 

The shop stocks a wide range of rolling stock and accessories from N to G scales for railway modellers and also a vast range of railway related dvds which appear on this web site and are sold worldwide. Martin's model shop carries the widest range of products possible and, with 5 other members of staff, provides a helpful and friendly welcome for anyone visiting the shop. The shop also offers an on-site repair service and decoder fitting service for rolling stock.

 

Martin.

 

edit. No connection with them.

[Butler Henderson]

It's a very oddly sited shop, tucked away in an upstairs corner of a half empty and very downmarket shopping centre. The Broadmarsh is no longer the kind of destination you'd visit on a shopping trip - most of it's business must be locals from the council estates or office workers on their lunchbreaks.

Or those using the bus station. If you think the Nottingham store is oddly sited the Leeds store is worse, down one leg of the back end of a shopping centre that makes Broad Marsh look glamorous. Presumably the rents must be cheap.

[great central]

Or those using the bus station. If you think the Nottingham store is oddly sited the Leeds store is worse, down one leg of the back end of a shopping centre that makes Broad Marsh look glamorous. Presumably the rents must be cheap.

 

Unless Broad Marsh have reduced their rents, the smaller units were around £100k per annum 20 years ago. Then there's rates, power, etc. Lot's of money needs to be taken.

[melmerby]

It would appear that MZ decided to go into administration when the new (higher) rental rates were due, which they felt would impact seriously on the future viabilty of the company.

Once again it appears a Landlord (or two) think empty shops are better for the accounts than one producing some rent, albeit at lower rate than originally anticipated.

 

I wonder what the business plan is that makes this practice worthwhile?

 

Keith

 

EDIT

I was in MZ Brum this afternoon, very quiet as usual with the staff in a group well away from the tills (as mentioned re another branch!)

Unless this branch is very busy at the weekends I'll not be surprised if it isn't profitable, it's always quiet when I visit, staff often outnumber possible customers.

[lmsforever]

But who would be in the market to buy them its a limited market after all.

[Coombe Barton]

I'm curious.  Having just looked at its website (albeit briefly) for the very first time as a consequence of the link being posted here, it seems its business is stricly transport DVDs, CDs, and publications.  Does the physical shop stock models and modeling supplies?

 

Matt

Certainly - and not just the boxes. Kits (Cooper Craft, Parkside etc,) Bits, paints, solder, fluxes. What you'd expect a model shop to sell

 

It's clean, bright and friendly