ModelZone seeking Administration

[The Stationmaster]

http://en.wikipedia.org/wiki/Modelzone

It's a great shame that any Tom, Dick or Harriet can write whatever they like on Wikiwhatsit and it sits there with others (not necessarily the poster of this link of course) more ready to believe it than a delving out of the relevant facts would tell them.

[D1056WesternSultan]

Extract from the Grauniad on line wenspaepr.

 

"In the UK, Hornby supplies over 700 independent model shops, national retail chains as well as selling direct to consumers via its online platform."

 

Can there really be 700?

[Pandora]

In addition to the near-extinction  of the "bricks and mortar" retail outlets for our hobby, advances in realism achieved through cinema or photographic levels of image detail and quality of  Railway Simulators,  is n't that the one of the future paths our hobby will take?

[Gwiwer]

Comparing the MZ business model with that of Kernow MRC (as others have done above) it's worth bearing in mind that the latter is most definitely in a traditional "High Street" location.  Not at the busier end but with free parking outside and in the main shopping street of a major regional town.  Not perhaps a "City centre" as in the heart of Truro, Plymouth or Exeter but very much in a town used as the regional shopping centre by many from miles around.

 

Kernow isn't all glitz and glitter; MZ stores in my experience have been a lot more about that.  Kernow is about knowledgeable and dedicated staff not the latest work-experience youth (again my experience may not be typical of MZ but that is the impression I got of their stores) and backs up the shop front with arguably the best mail-order service in the business and managed from a tiny back room at that.  I don't doubt other survivors of the "traditional" model shop also exist in similar circumstances.  

 

I visit my local model shops (both over an hour's drive though that is close in the Australian context) several times a year; the staff are the same but I never receive a personal greeting.  I visit Kernow MRC's shop perhaps once in two years and am invariably welcomed by name when I arrive.  That to me says a lot about operating a strong business model.  It may not be so relevant to MZ but I see no reason why any known customer should not be greeted by name when ever possible.

 

The few snippets we read imply that the MZ business may in fact be sustainable but with some of the overheads (i.e. the most costly stores to operate) trimmed.  We shall have to await developments but meanwhile it seems the stores (including Signal Box in Rochester) continue to trade over the counter and via email but not directly online for the moment.

[Mike Bellamy]

Extract from the Grauniad on line wenspaepr.

 

"In the UK, Hornby supplies over 700 independent model shops, national retail chains as well as selling direct to consumers via its online platform."

 

Can there really be 700?

 

Don't forget that although we concentrate on the model railway part of the business, there's a lot more to Hornby than that - in their annual results didn't it say that railways was around 35/40% of turnover - the rest being Scalextric, Humbrol, Airfix and Corgi and so the quote above won't be just about model railway shops. Also places like Argos stock Hornby sets as the quote says 'national retail chains'

[Xerces Fobe2]

Modelzone stores at some locations were fairly lightly stocked in recent times (Kingston and Reading for example)with lots of floor space just not used and therefore adding to the overheads. Shops such as Kernow Modelsare are stocked, with staff who are full of enthusiasm, know three business well and provide a high standard of service. The vsitor be it to the shop beit or online, by phone or in person has a high chance a getting what what they want at a competitive price.

 

Employing zombies in a retail change preprogrammed to say "can I help you" and without any other knowledge or experience of the business they work for no longer works in a retail chain in the hight street! The former staff have learnt one final railway term though "hitting the buffers"!

 

XF

[hammy]

Come on gents with all the model zone bashing were comparing a shop that stock most types off "modeling" to shops that are persific to model railways I always make a point of going into the one in Birmingham to buy something off the staff in there they have a knowledge of what there selling are we expecting all the staff to know everything about every diffrent "modeling aspect " in there shop be it trains airfix model cars rc cars boats Lego etc. I was talking to one off the blokes in there who must have been about the same age as me (26) and he seemed genuslly worried about his future and if "his" shop was going to shut down yes they may not be the most perfect shop for our hobby but they do surpport a lot of hobbies and to be fair the prices aren't that dissimilar to another well known modelrailway retailer in Birmingham

[cromptonnut]

 we expecting all the staff to know everything about every diffrent "modeling aspect " in there shop be it trains airfix model cars rc cars boats Lego etc.

 

I would have thought "knowledge of your product" was fairly obvious in any retail capacity?  If I can ask a shelf stacker in Tesco whereabouts I can find coconut milk, for example, I'd still expect them to have a vague idea whereabouts I could find it, even if they don't necessarily know everything there is to know.

 

In somewhere like Modelzone I'd expect a passing knowledge of the different gauges they stock, the difference between electrofrog and insulfrog, how the setrack geometry differs from streamline, for kits the different types of glue that you can use, the different types of paint, etc. and from my recent experience of Modelzone in Crawley, when the person who answered the phone didn't even know whether they stocked Peco O gauge flexitrack (of course, you'd expect them to need to check but to not even know???), I'd say that wasn't a particularly obscure sort of question, surely? 

[asmay2002]

Extract from the Grauniad on line wenspaepr.

 

"In the UK, Hornby supplies over 700 independent model shops, national retail chains as well as selling direct to consumers via its online platform."

 

Can there really be 700?

 

UK Model shop directory lists 781 model shops.  (Not all necessarilty stocking Hornby but on the other hand there may be shops not on the list).

 

http://www.ukmodelshops.co.uk/counties/modelShopsAZ/A/AZ#.Uc_reZzNkt8

[Fat Controller]

I would have thought "knowledge of your product" was fairly obvious in any retail capacity?  If I can ask a shelf stacker in Tesco whereabouts I can find coconut milk, for example, I'd still expect them to have a vague idea whereabouts I could find it, even if they don't necessarily know everything there is to know.

 

In somewhere like Modelzone I'd expect a passing knowledge of the different gauges they stock, the difference between electrofrog and insulfrog, how the setrack geometry differs from streamline, for kits the different types of glue that you can use, the different types of paint, etc. and from my recent experience of Modelzone in Crawley, when the person who answered the phone didn't even know whether they stocked Peco O gauge flexitrack (of course, you'd expect them to need to check but to not even know???), I'd say that wasn't a particularly obscure sort of question, surely? 

Having done a good few years in retail, and still being the main cook/shopper in our house, I wouldn't count knowing where to find coconut milk as 'product knowledge', simply as knowledge of the shop's geography. Product knowledge would, for me, be knowing what the product is and how it can be used, not where it is. Sadly, it would appear from the comments above, that many members of staff lack even the basics of retailing skills;in my opinion,  this is something that can be laid at management's door, however, both for the criteria used in recruitment, and for the subsequent assessments and consequent in-service training (if any is given).

[The Stationmaster]

Don't forget that although we concentrate on the model railway part of the business, there's a lot more to Hornby than that - in their annual results didn't it say that railways was around 35/40% of turnover - the rest being Scalextric, Humbrol, Airfix and Corgi and so the quote above won't be just about model railway shops. Also places like Argos stock Hornby sets as the quote says 'national retail chains'

Accounting year end 2013 - model railways 39%, slot car racing 27%, diecasts 18%, kits 16%.  Model railways had declined from 48% in the previous year, the biggest growth was in diecasts.

[melmerby]

Extract from the Grauniad on line wenspaepr.

 

"In the UK, Hornby supplies over 700 independent model shops, national retail chains as well as selling direct to consumers via its online platform."

 

Can there really be 700?

Don't forget such outlets as Fenwick's in Newcastle which have quite good stocks of Hornby, with end of range items at good discounts.

I have had a few items from there in the past.

 

I doubt they are in any model shop guide.

 

Keith

[melmerby]

I notice that the Birmingham MZ branch is the biggest but it's railway section, although covering Hornby, Bachmann, Graham Farish, Bassett Lowke etc. is lacking in depth in certain areas

 

E.g no Peco 00 code 75 or Electrofrog, both of which I found in the now defunct Holborn outlet, which seemed to have less space for railways but was tighter packed.

 

Keith

[Trainshed Terry]

Bang goes those special edition of the "Royal Mail Stowage Brake Van that they where going to do. Along with one other stowage coach.

 

Terry  

[G-BOAF]

Hold your horses. First of all, we know that the ex-ceo is making a bid for the company.

Secondly, if MZ don't do the stowage brake it will likely be done as a Bachmann std edition. My guess is that agreement was similar to the POS, that MZ get the first batch, then it enters the main range.

Thirdly, if MZ don't survive and SB do, Signalbox might take it on, given they likely have a good percentage of pre-orders anyway.

Also, the other (non-brake) stowage is part of the Bachmann range, so won't be impacted by MZ.

[Southernman46]

Still more folk who are likely to be without employment in this rapidly declining country.....................

 

We have little industry, the retail sector is disappearing and we are only able to generate power without the help of some foreign country  

[micklner]

Having done a good few years in retail, and still being the main cook/shopper in our house, I wouldn't count knowing where to find coconut milk as 'product knowledge', simply as knowledge of the shop's geography. Product knowledge would, for me, be knowing what the product is and how it can be used, not where it is. Sadly, it would appear from the comments above, that many members of staff lack even the basics of retailing skills;in my opinion,  this is something that can be laid at management's door, however, both for the criteria used in recruitment, and for the subsequent assessments and consequent in-service training (if any is given).

Probably paid minimum or near minimum wages too , no idea why anyone would expect them to be experts unless by coincidence it was a personal interest of the person concerned.

As said earlier their shops stock a huge variety if items. I have always found the staff at my local shop pleasant and helpful when asked. I dont buy much in their shops as nearly always full rtr prices. When they do sale items there are bargains to be had.

[Mod6]

in this rapidly declining country.....................

 

We have little industry, the retail sector is disappearing and we are only able to generate power without the help of some foreign country  

Keep to the topic please and don't wander off into wider political/economic issues unless of direct relevance.

[Ruffnut Thorston]

as I read it they are not saying they are only worth 50% 0f face value but that you can only use them for 50% of the purchase price of the goods, ie, you have £50 of vouchers so you must spend another £50 of new money on a £100 item,

 

still dubious I know but you end up with goods equal to what you paid for

 

***The terms seem to have been changed...(Goalposts moved?)

 

My original source...(June 27th...)

 

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

 

 

 

The company's 47 stores will remain open but the website has been shut down. Gift vouchers can still be used, but will only be worth 50% of their original value, the company said.

 

http://en.wikipedia.org/wiki/Modelzone

 

Gift vouchers were still being accepted, however Deloitte instructed stores to only honour 50% of their face value toward remaining stock, causing friction with a small but loyal customer base.^[16]

 

www.collectors-club-of-great-britain.co.uk

 

 

 

We've just received an update regarding the ModelZone administration situation and at the bottom of the press release from joint administrators Deloitte there's a note saying that gift vouchers are still being accepted but can only be used towards 50% of the value of purchases, e.g. if you've got a £20 gift voucher you can only use it if the item costs more than £40. Although this isn't ideal, many stores that enter administration immediately stop accepting any gift vouchers - just look at what happened with HMV.

 

http://www.modelcollector.co.uk/news/article/modelzone-goes-into-administration/15904

 

We understand that ModelZone gift vouchers are still currently still being accepted in MZ stores but can now only be used towards 50% of your purchase (that is to say, when purchasing a model costing say, £30, vouchers to the tune of £15 will be accepted, with the remainder being required to be paid by cash or credit/debit card.

[MrSimon]

I genuinely hope Modelzone doesn't close for good.  When I lived in London a couple of years ago - and will be living again soon - Modelzone Holborn was the only model shop within zones 1 and 2.  The shop in Leytonstone was a two hour round trip from where I lived in Shepherd's Bush.  I got quite a lot of reduced n gauge from the Holborn store; and it was the only place in central London to buy Evergreen strip, paints and thinners and it was open quite late so I could pop in an buy bits and bobs after work. 

 

Having said that, I wasn't entirely surprised to hear they'd gone into administration - when I've tried to buy the Evergreen I've needed recently at other MZ shops I've not been able to and got it online instead.  Maybe some of the smaller stores are more of a burden, and the towns they're in would be better served by independents?

 

Just a thought...

 

Cheers

 

Simon

[industrial]

It looks like most people on this topic are only bothered about Hornby and to a lesser amount Bachmann with most of the other suppliers are only a wast of space in the shop. Evergreen has been mentioned a few times so it might be a lot of other smaller suppliers who could be hit a lot harder like  Gaugemaster who was mentioned once as they supply a lot of other ranges as well as their own range, so could have bigger problems to some of the smaller firms who supply direct than the big names.

[Pandora]

I genuinely hope Modelzone doesn't close for good.  When I lived in London a couple of years ago - and will be living again soon - Modelzone Holborn was the only model shop within zones 1 and 2.  The shop in Leytonstone was a two hour round trip from where I lived in Shepherd's Bush.  I got quite a lot of reduced n gauge from the Holborn store; and it was the only place in central London to buy Evergreen strip, paints and thinners and it was open quite late so I could pop in an buy bits and bobs after work. 

 

Having said that, I wasn't entirely surprised to hear they'd gone into administration - when I've tried to buy the Evergreen I've needed recently at other MZ shops I've not been able to and got it online instead.  Maybe some of the smaller stores are more of a burden, and the towns they're in would be better served by independents?

 

Just a thought...

 

Cheers

 

Simon

For Evergreen products,  try shopping in an Architects supply shop,  you will be amazed at the stuff you can find in them

 

http://www.modelshop.co.uk/

 

this one is at Lehman Street,  nr Tower Bridge tube Station,   the shop is in one of the arches the viaduct for Fenchchurch St railway station

[Ozexpatriate]

I haven't been following this topic in detail and at eleven pages, I'm not about to now. I did a cursory search for "Hornby" which cut the list down to 3 pages, but I didn't see anyone refer directly to Hornby's June 27 public statement on the ModelZone closure.

 

Here is the text:

The Board of Hornby Plc notes that the retail group Modelzone has appointed Deloitte as administrator. Modelzone is an important business partner and although the news of the administration is disappointing our account management team has been well abreast of Modelzone's challenging trading situation and has been able to manage our financial exposure at an acceptable level.

 

Hornby has a wide, multi-channel distribution platform, which it is continuing to broaden. In the UK, Hornby supplies over 700 independent model shops, national retail chains as well as selling direct to consumers via its online platform.

 

A further update will be made in due course, when more details are known about the outcome of the administration.

If I've missed some invisible ink - my apologies.

[Budgie]

this one is at Lehman Street,  nr Tower Bridge tube Station,

Sorry to be pedantic, but it's Leman Street, without the h. Also, there isn't a Tower Bridge tube station, but the shop is within easy walking distance of several underground and Overground lines including East London Line (Whitechapel, Shadwell), Circle (Tower Hill, Aldgate), District (Tower Hill, Aldgate East), Metropolitan (Aldgate) and Hammersmith & City (Aldgate East). None of these lines is on the "tube".

[roundhouse]

The shop in Leman Street is mainly and architectural modelling supply shop but the range of products suitable for us modellers is huge. They do large sheets of styrene (not so easy to carry on the Underground ) paints including Humbrol, various adhesives  scenic materials such as trees, Prieser figures and many modelling tools  such as replacement scalpel knife blades.

 

I used to work near there and it was very handy.

 

Ian