Auckland-based women’s fashion chain, Shanton Fashions, has been placed in voluntary administration by its directors. The move is in response to Shanton’s credit facilities being withdrawn and demand made for immediate payment of the overdrawn balance. It is too early at this stage to identify how much is owed to creditors. Bryan Williams of BWA Insolvency has been appointed as administrator. There are 37 stores Shanton stores across New Zealand, as well as an e-commerce business. It e
mploys around 240 people.
Despite the company having its liquidity greatly reduced, directors are still of the view that the business can continue and the brand will survive, with the intention to preserve the inherent value in the brand.
Business will be conducted as normal, however, gift vouchers and layby purchases will be managed directly through the office of the administrator.
The amount owed to creditors is expected to be revealed when the director’s statement of position is handed over to the administrator, to be presented to the first creditors’ meeting in the next week.
