Shanton debts laid bare

shanton fashionAlmost $4 million is owed to about 220 unsecured creditors of Shanton Fashions, but administrator, Bryan Williams, of BWA Insolvency is confident Shanton will continue to trade.

The women’s fashion chain has 37 stores across New Zealand and employs 240 people.

Around 80 people attended the first creditors meeting in Auckland, where Williams assured preferential creditors the IRD and Shanton employees they will be paid outstanding entitlements.

The company directors’ statement of position tabled today shows $3,915,671 owing to unsecured creditors.

The stated deficient is $693,159, but this is relying on the market value of the assets being the same as book value, so is anticipated to be greater as the administration investigations continue.

There were 35 registered voters in attendance, six offshore creditors represented by proxy, and 138 postal votes were provided to Williams in advance of the meeting.

“That affirmation is a wonderful result and indicative of a high level of trust and confidence in myself and in BWA Insolvency,” Williams said.

Creditors largely support Williams’ submission that viability is key to the plan for business and that he intends to consider and formalise reconstruction plans immediately on the back of this mandate.

“We can report that customers of Shanton continue to support the brand, with sales activity continuing to rise,” he said.

A committee of creditors has been formed comprising industry participants and marketing contributors.

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