Shanton Fashions, which operates a chain of women’s clothing stores around New Zealand, has been put into liquidation by its shareholders.

An initial report by co-liquidator, Gareth Hoole, says the liquidators “do not intend to continue to trade the business” and are preparing to disclaim store leases to avoid further costs to the company and its creditors.

The report does not say how many people Shanton employs. At the start of the year 155 people worked for the company and up to 70 jobs went under a restructure in March. It is anticipated that many Shanton employees’ jobs are under threat.

Liquidation was recommended by Shanton Fashion’s voluntary administrator, Bryan Williams, who restructured the company, closed 17 stores in March, and attempted to find a buyer for the business after his appointment at the start of the year.

However, creditors, which are owed $7.7 million, voted against this recommendation and the company was handed back to its directors, who traded the company to the best of their ability. This did not however prevent Shanton shareholders from putting the company into liquidation.

“The liquidators will initially seek to sell the business as a going concern but are cautious in their optimism of achieving such an outcome given the evident lack of success to do so on the part of the administrator,” Hoole said in the report.

“It is considered that since those efforts to achieve a sale as a going concern, the value of the company and its underlying assets has dissipated further. Should there be no interest in the business as a going concern, the liquidators will seek to realise the assets of the company piecemeal for their best potential under a forced sale scenario.”

The report says the company’s assets include inventory, cash at bank, shop fittings, fixtures and intellectual property, but does not disclose a value.

It lists Shanton Fashion’s liabilities as totalling $7.7 million, close to the level of debt disclosed during the voluntary administration.