Home appliance and furniture retailer Smiths City has gone into voluntary administration.
Administrators are calling for “urgent” expressions of interest for potential buyers of the business. The company was founded in Christchurch in 1918, and currently operates nine physical stores across New Zealand, along with an online store.
In a statement, a spokesperson for administrators said Smiths City faced increasing financial pressure in a challenging economic environment.
“Despite closures of some stores and further downsizing measures, declining sales meant that the director of the company took the decision that trading could no longer continue.”
As of 8.30am all stores and the online shop have been temporarily closed, with “the aim of reopening them later this week”.
The spokesperson said administrators would undertake an “urgent assessment” of the company’s financial position and confirm the next steps.
“Customers who have paid deposits for purchases will be contacted directly by the administrators over the coming days.”
Two administrators from BDO Christchurch were appointed earlier today.
“The voluntary administration process aims to achieve the best outcome for all stakeholders. This may include selling the business and assets to interested parties. The administrators are calling for urgent expressions of interest,” a spokesperson said.
Luxon: ‘Sad news and a real shame’
Prime Minister Christopher Luxon told 1News that Smiths City’s liquidation was a “real shame”.
“It’s a great Christchurch company that’s existed for a long period of time, and I know it’s been a difficult time for them in particular. It’s a difficult time for retail, the combination of what’s transitioning to online shopping relative to bricks and mortar.”
He said retailers had been wrestling with that worldwide, not just in New Zealand.
“My thoughts are very much with those workers, being a Kiwi company from Christchurch, that’s had its challenges over a number of decades, but it’s sad news.”