Creditors see £11m losses after Modelzone collapse

 
Kasmira Jefford
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LENDERS and suppliers to defunct retailer Modelzone are owed almost £11m, after the chain collapsed into administration last month.

According to a report from administrators Deloitte, more than £9m was owed to its lenders Lloyds Banking Group and Lloyds’ private equity division LDC at the point of administration.

The retail chain, which had 47 UK stores, also owed around £1.5m to suppliers and landlords, who – as unsecured creditors – stand to recover nothing.

Hornby, the model train maker and Modelzone’s biggest unsecured creditor, said it has written off around £200,000 debts but that it does not expect the closure to have a material impact on its business.

In a statement of affairs published on Companies House, Deloitte said it hopes to recover around £4m for creditors through the sale of ModelZone’s stock.

This would leave creditors around £7m out of pocket.