Toy and model retailer Modelzone is to close all its remaining stores after joint administrators Deloitte failed to find a buyer for the chain.

The 18 stores which continued trading after the company went into administration in June will close in the middle of next month, with the loss of a further 126 jobs.

Richard Hawes, joint administrator and partner in Deloitte's restructuring services practice, said: 'We sought to find a potential buyer for some or all of the stores, but unfortunately no viable offers have come in since our appointment two months ago. Modelzone has been generating losses over the past few years, largely through an increase in online competition and having taken leases on new stores that proved to be unprofitable.'

Modelzone employed 385 employees across 47 stores and at head office at the time of Deloitte's appointment.