Shanton shuts half of its stores, lays off 70 staff
Half of the retailer's stores will close and 70 staff will lose jobs.
Almost half of Shanton Fashions’ stores will shut their doors and up to 70 staff will lose their jobs.
Seventeen of the fashion retailer's 37 stores will close as the company works throough voluntary administration. Administrators have p[t it up for sale.
The women’s fashion store, which employs 155 people, owes $7.79 million to 206 creditors, including the IRD and outstanding holiday pay owed to Shanton employees.
BWA Insolvency principal Bryan Williams was appointed administrator when the company went into voluntary administration in January. He says some staff will be relocated but he couldn’t say how many.
“It is with a great deal of regret that the store footprint needs to reduce but this is the first step toward the rehabilitation of a brand that has been an icon in the New Zealand marketplace for more than 30 years,” he said in a statement.
The insolvency expert says it it necessary to close the stores because “they are too big for the type of commercial activity Shanton should be doing and therefore uneconomic.”
The business continues to operate and sale of the business will be concluded next Tuesday, March 3.
Five contenders remain.
Companies Office records show the retailer’s majority shareholder is Australian-based Atamine Property.
Of the 37 stores nationwide, those due to close are Eastgate, Northlands, Whakatane, Masterton, Hamilton, Palmerston North, Feilding, Thames, Gisborne, Napier, Nelson, Westgate, Fraser Cove, Sylvia Park, Botany, Manukau Supa and Albany.
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Shanton shuts half of its stores, lays off 70 staff
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