Shanton closes stores

ShantonShanton Fashions will close 17 stores in a bid to restructure the troubled business following its voluntary administration last month.

The restructure will leave 20 stores, but will see up to 70 staff lose their jobs.

Of its 37 stores, those include Eastgate, Northlands, Whakatane, Masterton, The Base, Palmerston North, Feilding, Thames, Gisborne, Napier, Nelson, Westgate, Fraser Cove, Sylvia Park, Botany, Manukau Supa and Albany.

Bryan Williams, of BWA Insolvency, said some staff will be relocated to other stores.

“It is with a great deal of regret that the store footprint needs to reduce, but this is the first step towards the rehabilitation of a brand that has been an icon in the New Zealand marketplace for more than 30 years,” Williams said.

“As with any company restructure, it is a very difficult decision, but it was necessary to close the stores. Many stores are the heritage of the Shanton business before it went into receivership in 2012. The stores are too big for the type of commercial activity Shanton should be doing and therefore uneconomic.”

The retailer owes $7.79 million to 206 creditors, including the IRD and outstanding holiday pay owed to Shanton employees. As of January 11, there were 155 Shanton employees nationwide.

The stores are due to close on March 2, and it is understood all employee entitlements will be paid on the final day of employment.

“Many of the staff are very sad to lose the Shanton connection and some have been employees for a very long time. They have been loyal and committed throughout this process and many are keen to be part of the new era for the Shanton lady,” Williams said.

A sale of Shanton is expected to be concluded on March 3 with five potential buyers in negotiations.

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