ModelZone seeking Administration

[Oldddudders]

Speaking of administrators

Due process is everything.

[Ian J.]

OK, just spoken to SignalBox. They have not had any deliveries for a couple of weeks, and are taking things on a day-to-day basis, and cannot speculate on future deliveries. Advised I find my pre-order items elsewhere if in stock.

NOT GOOD. This is a very sucessful business which appears to be undergoing a destruction by the administrators.

 

It's less likely to be the administrators' direct fault per se, but the simple fact that SB are caught up in a company in administration meaning no-one wants to supply to them.

[Crepello]

OK, just spoken to SignalBox. They have not had any deliveries for a couple of weeks, and are taking things on a day-to-day basis, and cannot speculate on future deliveries. Advised I find my pre-order items elsewhere if in stock.

NOT GOOD. This is a very sucessful business which appears to be undergoing a destruction by the administrators.

I've e-mailed them and got an excellent response from Vernon--''I would suggest leaving your orders open at SB but also ordering elsewhere, as a belt and braces option, then at least you'll definitely get your items from someone''.

What a great shame it'll be if they do go down with MZ.

[micklner]

Visited MZ at Lakeside after hearing a rumour they were having a sale.

 

On arrival , one salesman shop deserted bar me. Every item priced to the max = crazy way to keep any business going !!

 

If they want to keep the business afloat and attractive to a new buyer surely you reduce prices to get some cash flowing through the tills.

 

Needless to say as usual !! yet again I didnt buy anything!!

[melmerby]

Speaking of administrators, I just had a letter from them advising me that I was owed money for an item that Modelzone were unable to supply in my last delivery, and referring me to the enclosed form, which was not enclosed, for full details of how to lodge a claim for possible refund. As the item was an Oxford LNER Mechanical Horse for £1.50, I thought it's not worth the trouble to even ask for the missing form.

I'm surprised you were charged for an item that they weren't able to supply.

Most retailers only charge when the item is despatched.

 

Keith

 

EDIT: for example Model Railways Direct have just despatched a 72XX which has been on order since early in the year. No charge until now.

[Mel_H]

According to Property Week, this administration was forecast. They seem to think that it will be a "pre-pack" administration with some of the shops surviving. Perhaps Signal Box will get split off from the main group???

It is not a pre-pack. They work much differently; this is probably not the forum to explain/discuss this process 

[Mel_H]

An update. Source: Retail Week

 

 

Collapsed retailer ModelZone has made 20 head office redundancies after collapsing into administration last week.

 

ModelZone, which operates 47 stores, informed its 70-strong head office team of the job cuts on Friday. The redundancies at its head office site in Lancing, West Sussex are the firstsince the retailer appointed administrator Deloitte on Tuesday, as revealed by Retail-week.com.

The business collapsed after mounting losses due to unprofitable new stores and growing online competition.

Its store staff remain unaffected by the cuts currently. Until now ModelZone had employed a total of 400 people.

Deloitte joint administrator Richard Hawes said: “We have been reviewing Modelzone’s operations closely to ensure as much value as possible is realised for all creditors during the administration. Unfortunately, as a result of this review, a number of redundancies at the head office have been made. While this has not been an easy decision, it is a crucial one as part of the restructuring of the business.

“We would like to thanks all staff for their continued support during the administration.”

ModelZone was one of three retailers to collapse last week after Internaçionale and Dwell both filed for administration.

-----------

 

On a separate note, I was very happy to receive an order made via the web, the day it went into administration. Service was as good as ever.

 

IMHO if there is a market gap (for model shops), then it will be filled. I would expect that this is what the administrators will be doing at the moment. However, the longer the process goes on, the harder it is, but the fact that the shops are continuing to trade would suggest they have serious buyers in discussion at the moment.

[Obi-Jiff Kenobi]

I'm surprised you were charged for an item that they weren't able to supply.

Most retailers only charge when the item is despatched.

 

Keith

 

EDIT: for example Model Railways Direct have just despatched a 72XX which has been on order since early in the year. No charge until now.

Item was in stock according to the website when I placed the order, so something (quite apart from going into administration!) went wrong between order/payment and despatch. As I said, for £1.50 I'm not worried!

[andyman7]

I also wondered how long it would be before something like this would happen, major shopping centre locations, lack of close parking (not all shops) but to me worst of all was the very high prices of everything. I don't live near any of their shops I have just one shop here in Scarborough which, since the internet revolution has reduced their prices to a little over the box shifters prices but when postage is added my local shop is often cheaper. Been a tight Yorkshireman I would never have purchased from Modelzone at their prices.

Ian  

I'll make the point again, if you kept your eyes open Modelzone could produce amazing bargains. Last summer I collected the whole Bachmann Scenecraft Great Central station set at a QUARTER of list price. Good enough even for a 'tight Yorkshireman...' 

[Ruffnut Thorston]

Seeing Dapol Dave posting on here, I was wondering if there is a reason why Modelzone (Chester) (Before the current difficulties.) didn't stock anything made by Dapol? OO or N. No kits, rolling stock, nothing!

 

So...I couldn't buy from MZ...

[Cyberspice]

Sorry, but out-of-town shops aren't "shopper friendly" if you don't have a car and the buses don't go that way. Nor if you work in town and the town centre shop's (just) within lunchbreak walking distance... :-(

 

 

I live 5 miles from Leeds city centre and a few minutes walk from a bus service that runs in to the city every 8 minutes. The last time I actually went in to the centre was January! Its more cost effective (ignoring discounts) to buy online and pay say 2.50 postage vs the 4 quid bus fare. Add the internet savings and its just not worth going in to visit a shop.

 

However I do work close to Frizinghall Models and I believe in supporting your local store so I do visit there on occasion. But I haven't bought a big purchase since they don't tend to stock a lot of the stuff I want. I can see its a great store if you basically model in RTR 00 and do some plastic kit building. But I don't do much of that.

[Legend]

Internet shopping is ok , but am I alone in actually enjoying getting on a train to visit model shops and actually see the goods ? The thing about model zone was the other stocks that they held that was really interesting, far east construction kits of type 45 destroyers and models of starship Enterprise etc

[mevaman]

Crepello

 

Are you sure that you had a reply from Vernon at SB?

 

When I last spoke to him, he and Kerry had just resigned. They were the key staff at SB and Vernon instigated the Limited Editions.

 

In any event I wish them and all the remaining staff at SB well.

 

Andrew

[deltic79]

Apparently that 15% thing only applied to stuff announced after the ruling came in, therefore new stuff which had been announced prior to their ruling could still be discounted at greater than 15% ... it still smells worse than a rat with diorreah, but thats a rant for another thread.

 

A good point that I'd forgotten about. It was the Metrotrain 108 that was released last year so I don't know if that was announced prior to the ruling.

 

In any case it was from memory on sale for about £15 less than the box shifters who were selling at RRP less 15%. So a massive discount over Modelzone's normal pricing at exactly RRP, which was my point.

[RJS1977]

I live 5 miles from Leeds city centre and a few minutes walk from a bus service that runs in to the city every 8 minutes. The last time I actually went in to the centre was January! Its more cost effective (ignoring discounts) to buy online and pay say 2.50 postage vs the 4 quid bus fare. Add the internet savings and its just not worth going in to visit a shop.

 

However I do work close to Frizinghall Models and I believe in supporting your local store so I do visit there on occasion. But I haven't bought a big purchase since they don't tend to stock a lot of the stuff I want. I can see its a great store if you basically model in RTR 00 and do some plastic kit building. But I don't do much of that.

Agreed, but that wasn't the point of my post. My post was in response to an earlier one saying that out of town stores are supposedly better because they have free parking, and I was merely pointing out that not all of us can get to out of town stores easily. I wasn't making a comparison with internet shopping, merely between different store locations. :-)

[orcadian]

OK, just spoken to SignalBox. They have not had any deliveries for a couple of weeks, and are taking things on a day-to-day basis, and cannot speculate on future deliveries. Advised I find my pre-order items elsewhere if in stock.

NOT GOOD. This is a very sucessful business which appears to be undergoing a destruction by the administrators.

I think you will find that this is all standard practice and how things have to be during a period of administration, rather than 'destruction by the administrators'.  I believe a business in administration can't actually buy in additional new stock, but could receive deliveries of any items they have already paid for before the administration began. Similarly, closing off the internet sales channel is also standard practice, partly so that an accurate stock inventory can be drawn up.

 

Similarly,wouldn't a liquidation sale need to be approved by the administrators but only after the failure of attempts to keep the business alive? In this case, if Hornby still retain ownership of their products (including all those Airfix kits, etc), it may be that only Hornby themselves could set any clearance bargain prices?  

 

But, unless anyone here is a qualified Administrator or Liquidator, I think we've probably been in the field of speculation for quite a time now!  The Administrators will surely be aware of the details between ModelZone, SignalBox and Bachmann and Hornby over the planned future exclusive and limited edition models, as well as the number of pre-orders they hold (but these have not been paid for by the intending customers). 

 

So until such time as the Administrators release any statement of intent or (hopefully) of a positive outcome to their efforts, we live in Guessland and 'know nutting!'  In the meantime, whatever our own personal views of individual MZ stores or the whole chain, I know that I am saddened to think of the situation of their staff, no more nor no less saddened than I am by all other people facing redundancy. 

 

Richard  - who never sees his own typos until after pressing the 'post' button!

[The Dorset Wanderer]

Having been through Administration and Liquidation I feel for the employees who face an uncertain future.

Work is not easy to come by these days and the closure of a business will also have a knock on effect locally.

Steve

[Jack]

There goes my hot coffee down my nose and across my desk.

 

I'll be checking my forthcoming n gauge 33 for stains then ...

 

Internet shopping is ok , but am I alone in actually enjoying getting on a train to visit model shops and actually see the goods ? The thing about model zone was the other stocks that they held that was really interesting, far east construction kits of type 45 destroyers and models of starship Enterprise etc

 

I agree, it is also nice to be able to make sure it is fault free and in the right condition, something which ends up costing postage otherwise.  I purchased a carriage from SB via mail order a few weeks back and they had not advertised it as weathered, even though it was.  Although their refund was swift, I was still out of pocket for the return postage.

[298]

However I do work close to Frizinghall Models and I believe in supporting your local store so I do visit there on occasion. But I haven't bought a big purchase since they don't tend to stock a lot of the stuff I want. I can see its a great store if you basically model in RTR 00 and do some plastic kit building. But I don't do much of that.

 

Sooner or later we'll be wondering why model shops are bothering to stock RTR releases- long gone are the days where you expected to go into a shop and see most of the range in glass cases for parousal and impulse buying, nowadays you basically have to pre-order something or run the risk of it not selling out by the time you get there. If it is there it is obviously overpriced, but I bet the retailer had wished they'd charged a bit more if their shelves are empty and customers still asking for a model that is in the current catalogue but sold out.

 

That's why I can see a model shop merely as a picking up point for a model you've pre-ordered from the manufacturer and already paid for. The only stuff in stock will be dedicated production runs, like the limited editions that some retailers commission themselves.

[G-BOAF]

I think you will find that this is all standard practice and how things have to be during a period of administration, rather than 'destruction by the administrators'.  I believe a business in administration can't actually buy in additional new stock, but could receive deliveries of any items they have already paid for before the administration began. Similarly, closing off the internet sales channel is also standard practice, partly so that an accurate stock inventory can be drawn up.

 

Similarly,wouldn't a liquidation sale need to be approved by the administrators but only after the failure of attempts to keep the business alive? In this case, if Hornby still retain ownership of their products (including all those Airfix kits, etc), it may be that only Hornby themselves could set any clearance bargain prices?  

 

But, unless anyone here is a qualified Administrator or Liquidator, I think we've probably been in the field of speculation for quite a time now!  The Administrators will surely be aware of the details between ModelZone, SignalBox and Bachmann and Hornby over the planned future exclusive and limited edition models, as well as the number of pre-orders they hold (but these have not been paid for by the intending customers). 

 

So until such time as the Administrators release any statement of intent or (hopefully) of a positive outcome to their efforts, we live in Guessland and 'know nutting!'  In the meantime, whatever our own personal views of individual MZ stores or the whole chain, I know that I am saddened to think of the situation of their staff, no more nor no less saddened than I am by all other people facing redundancy. 

 

Richard  - who never sees his own typos until after pressing the 'post' button!

 

Thanks for the additional info Orcadian.

It still doesn't detract from the fact that SB was (to everyone's knowledge) a sucessful business, and run as a sub-operation of Modelzone. As such, one would have thought it could have been treated as such. I still argue the Administrators are damaging SB.Is there really nothing thy can do to isolate the SB side of the business and allow it to continue with normal operations? This would preserving its profitabability and making it a more attractive proposition for sale, thus reducing the losses of the group as a whole.

I have just spent £40 with another retailer because SB couldn't promise honouring my pre-order. Where's the sense in that? Assuming they don't come through on my other pre-orders, that's over £400 of lost business. Congrats Deloitte, really well done....

 

Pre-orders are guaranteed profit, there is no risk. This is where something like a model shop is different to a high street cloths retailer. The Administrators appear not to realise that. It just goes to reinforce the under known fact that accountants can't, on their own, run the world. Applyng one-size-fits-all practices just doesn't work.

 

Similarly sorry for people losing their jobs or living with uncertainty. The SB guy I spoke to seemed most downhearted and I was most sympathetic.

[Clive Mortimore]

Landlord "Got me rent yet matey?"

 

Shop owner " Not yet but I have some pre orders for stock not yet made, that the customers might take up, the stock might arrive by mid-December and I might be able to pay you."

 

Landlord " If that is the case you might find you no longer occupy this shop.....as I said got me rent yet matey?"

 

As a customer I can cancel a pre-ordered item up to the date it is sent to me so they cannot be counted as money coming in.

[Jamiel]

I live 5 miles from Leeds city centre and a few minutes walk from a bus service that runs in to the city every 8 minutes. The last time I actually went in to the centre was January! Its more cost effective (ignoring discounts) to buy online and pay say 2.50 postage vs the 4 quid bus fare. Add the internet savings and its just not worth going in to visit a shop.

 

However I do work close to Frizinghall Models and I believe in supporting your local store so I do visit there on occasion. But I haven't bought a big purchase since they don't tend to stock a lot of the stuff I want. I can see its a great store if you basically model in RTR 00 and do some plastic kit building. But I don't do much of that.

I was there a couple of weeks ago, and thought the level of stock was excellent. I do run RTR OOgauge, and scratch build buildings, as well as some plastic kits and starting on brass kits, and apart from the kind of very specialist kits/etches only seen at shows and on-line I thought it had a great selection. I do intend to buy some locos there, and also at Morley's Millenium Models before the end of the year.

 

I don't mind paying a couple of pounds more to a local retailer to get locos (but still less than list price). I also like that I can see and feel a model before I buy it, or don't as was the case when I saw a couple of locos in the flesh. I also like avoiding the post for some items, so am happy to buy at local shops.

 

I still get some items from on-line too, some are exclusive anyway to on-line retailers.

 

It seems that in the Leeds, Bradford and Wakefield area we are fortunate to be catered for by a number of local model rail retailers, especially if you have a car to get to them.

[Jol Wilkinson]

Sooner or later we'll be wondering why model shops are bothering to stock RTR releases- long gone are the days where you expected to go into a shop and see most of the range in glass cases for parousal and impulse buying, nowadays you basically have to pre-order something or run the risk of it not selling out by the time you get there. If it is there it is obviously overpriced, but I bet the retailer had wished they'd charged a bit more if their shelves are empty and customers still asking for a model that is in the current catalogue but sold out.

 

That's why I can see a model shop merely as a picking up point for a model you've pre-ordered from the manufacturer and already paid for. The only stuff in stock will be dedicated production runs, like the limited editions that some retailers commission themselves.

 

An interesting prediction, and most likely to have the biggest impact on the collector/modeller. However as they seem strongly motivated by price, then they will seek out the cheapest supplier (and there are enough posts in this topic to confirm that).

 

But where will  it leave the person who wants the smaller items for  building a layout? Probably where we are already, with the need to buy on line or at shows. Ironically it's seeing what these items look like is as important as inspecting a RTR loco or rolling stock. What colour is that ballast, scatter, or whatever? Does the Will's bridge girder pack look like a LWR GCR bridge or what? How well are a particular make of whitemetal figures cast?

 

Elsewhere on RMWeb members have bemoaned the loss of the traditional model shop. It's clear that modelling and retailing have changed and we are getting the market place that suits what the majority want. Modelling is now much more about having large collections of models (usually locos), the average spend is probably much higher than it was twenty or thirty years ago (as a percentage of disposable income), so price/discount, special editions, etc. are now one of the major factors in driving the marketplace.

 

I think that this trend will continue, until we are left with a few large online retailers, some of whom will have a retail shop but who will be poorly sited for the majority of personal callers. Some local shops will continue where they can find low rental costs, etc. and also specialise in particular niche products that they can also sell online. Finally we will have to buy specialist products (kits, etc.) online from the manufacturer or through the larger shows.

 

It's probably comparable to the loss of the village or local pub and the rise of Wetherspoons, cheap cr*p booze in supermarkets, the growth of the microbrewery and the local real ale pub with regular beer fests (like the Dove in Ipswich).

[roundhouse]

Interesting analogy there with pubs. You really could get me going with the pub situation but I will try and stick to modelling!!

 

Going back a few years there used to be a lot of large American railroad stores but these days there are fewer and those that we often visit have less stock. A recent visit to Caboose Hobbies which has a fantastic range still had many shelves empty with printouts hanging over them showing forthcoming releases, most of which seem to have been delayed (i am still waiting for the new improved Athearn F40PHi in N scale that should have been out at least 2 years ago).

 

Also getting detailing bits for my N scale layout has been far harder than for Banbury. These days there seams to be more detailing packs available over here by the likes of Wills, Ratio etc. or at least more easily obtainable (regardless of the big pond being in the way) but in most cases we have to order by post or get at shows.

[John M Upton]

I don't know whether this is related to the Signal Box at Rochester or not but...

 

I went to the Bluebell Railway on Saturday for the Model Railway weekend.  Now silly me wasn't paying full attention (the fact I had my newly promoted Fiancee on my arm, and she wants an A4 Sir Nigel Gresley in blue but that's another story!!) BUT there was a stall at Sheffield Park (next to the snacks hut by the footbridge on the down platform) that was selling RTR, much at nice discounts as well as split from sets stuff etc which seemed to be very much in the style of the old Signal Box stands at the likes of Ally Pally etc only a bit smaller.

 

The discount labels on the various RTR looked identical (I purchased a very nice discounted Bachmann green Class 37 and some ex set wagons) anyway whilst the fun and games was had trying to get a signal to the chip and pin machine I overhead a conversation between one of the stall holders and a gentleman stating that they had only just set up after the ModelZone implosion and that their website goes live next week..

 

Who were these people?  I managed to mislay the card/paperwork they gave me (blame to soon to be wife!)

 

Wondered if there is any connection here....

 

EDIT - Google is your friend:

http://www.companieslist.co.uk/08505014-invicta-model-rail-limited

 

Just been set up.  Did someone further up this thread say two of the Signal Box management had resigned and one of them was called Kerry?  If so, one and the same it would appear which is hopeful.