The downturn has claimed more retail groups with Internationale, ModelZone, Ark and Dwell the latest victims.
Modelzone, a toy retailer with about 50 shops, will appoint Deloitte as administrator in the next few days. Fashion retailer Internacionale is expected to appoint Ernst & Young to handle the administration of its 140-150 shops. Furniture retailer Dwell confirmed the appointment of Duff & Phelps which has in turn appointed Savills to advise on options for the 23-store portfolio. Ark, a 17-store fashion chain, is also reported to be close to collapse and has filed a notice to appoint Begbies Traynor as administrator. The news broke the day after the 24 June quarter day. CBRE warned against the dangers of expanding too fast which was the case with both Dwell and ModelZone, it said. The Daily Telegraph says landlords will be furious they face missing out on a quarter’s rent. The British Property Federation called for “fairness to be injected into the process” where retailers pay for what they use irrespective of the timing of an administration.