Richard Hawes, Nick Edwards and Rob Harding, partners at Deloitte, have been appointed joint administrators to toy retailer Modelzone Holdings Ltd and certain of its subsidiaries, including Amerang Ltd.

Both companies are headquartered in Lancing, West Sussex and employ around 400 staff. Modelzone is the UK's largest specialist model chain with over 26 years' experience in the market, selling from 47 leasehold retail stores and online. Amerang is a wholesaler of toy and hobby trade products and operates from an 37,500 sq ft warehouse.

Richard Hawes, joint administrator and Deloitte partner said: 'Modelzone has historically been profitable, however in recent years the company entered into leases for new stores that proved to be loss making. This, coupled with the growth in online competition, has resulted in Modelzone generating losses over the last couple of years, which the board of directors has now concluded is unsustainable and sought the appointment of administrators.'

Amerang remains a profitable business, but Hawes said the directors were forced to seek the appointment of administrators to protect the value of this sister company following Modelzone's administration. He said the administrators will continue to trade as normal while seeking a buyer for all or parts of the business as a going concern, and during this time gift vouchers will be honoured towards 50% of the purchase of goods.