LDC, the private equity arm of the Lloyds Banking Group, today announces that it has backed a £5.6m Management Buy Out of Modelzone Holdings, the owner/operator of Modelzone, the UK’s largest model retailer, and Amerang, wholesale agent in the UK for overseas suppliers in the model and hobby industry. The MBO was led by CEO, David Mordecai, supported by the group’s new non-executive Chairman, Terry Norris

LDC’s initial £5.9 million investment will be supported by further £3.6 million funding over three years to enable David Mordecai and his team to further enhance the group’s market­-leading proposition and implement an accelerated retail roll-out plan, a core element of the investment strategy. In addition the group will make selective acquisitions

Modelzone offers a broad range of high-quality models including plastic kits, die cast collectibles, remote control vehicles, railways and slot racing. The company is a niche retailer in a highly fragmented sector, which caters for both the casual shopper and dedicated collector alike. Modelzone operates from 29 stores across the UK and through its modelzone.co.uk web-site. Outlets include Bluewater, Lakeside, Metro Centre, The Trafford Centre and Meadowhall, as well as stores in major cities such as London, Liverpool, Manchester, Nottingham and Leeds.

David Mordecai, Modelzone Group Managing Director said: "These are exciting times for the new Group as the money invested will allow us to accelerate our retail roll out plan, as well as further develop our strategic goals in Amerang and enhance our appeal to the casual shopper and dedicated enthusiasts."