Toy and hobby retailer Modelzone has collapsed into administration, leaving 400 jobs at risk in the latest blow to the British high street.

The company has appointed administrators from Deloitte in the hope of finding a white knight to save the business.

Known for selling a range of products from model cars to aircraft and train sets, the business has struggled in recent years, making an operating loss in 2012 of £750,000, after a disastrous expansion plan left it with a hefty rent bill. Monday was the day for the latest quarterly rent payments, a deadline notorious for pushing struggling retailers into administration.

Administrators are hopeful of finding a buyer with several parties thought to be interested, including former owner David Mordecai.

Richard Hawes, joint administrator at Deloitte, explained: "We are working closely with customers and employees to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors."

The company's 47 stores will remain open but the website has been shut down. Gift vouchers can still be used, but will only be worth 50% of their original value, the company said.

Modelzone admitted it was struggling in its most recent accounts filed with Companies House: "Trading performance for the year was disappointing … Following a review of the business, it became clear that the business infrastructure and management capability was insufficient, not only to take the business forward and grow further, but also to deliver sustainable profitability. It was also evident that the sales and profit expectations of the new stores opened between 2010 and 2012 were unrealistic."

The stores also stock Hornby products through concessions and the administration could be a risk to Hornby employees on those sites.

Hornby said it was aware of Modelzone's problems and did not think it would impact on its business.

The retailer is the latest company to face closure, with furniture company Dwell going bust last week and curtains and soft-furnishings business Mostyn's also on the brink of collapse.

Meanwhile, department store Debenhams said like-for-like sales remained flat in the three months to 22 June, with bosses warning that the high street will continue to struggle. Its chief executive, Michael Sharp, said: "Consumer confidence has continued to bump along the bottom. You've seen more retailers falling this week and the CBI talking about stagnant sales volumes, so we've seen nothing that is showing a change to that sentiment."