Silvermoon liquidators close six stores, cull staff ahead of hoped-for sale

(Source: Silvermoon/Facebook)

Silvermoon’s slow managerial response and high salary costs – along with the Covid-19 pandemic and challenging retail conditions – contributed to the jeweller’s liquidation.

Appointed liquidator BWA Insolvency also found that Silvermoon owes Inland Revenue around $1.3 million, a bulk of which is unpaid PAYE tax.

BWA has already shut six of Silvermoon’s 10 stores and laid off 25 of its 58 staff.

“We’re looking to relocate inventory for the purposes of restructuring the affairs of the company,” Bryan Williams of BWA Insolvency said.

“Restructuring will mean consolidating activity across three or four outlets. Stores closing include all three Christchurch locations, two Wellington stores in Queensgate and Porirua, and the Tauranga Crossing store.”

The company will keep open the remaining three stores in Auckland and one in Nelson as it looks to restructure around its website sales.

Meanwhile, Williams said that Silvermoon has the chance to shift from liquidation to voluntary administration for restructuring purposes.

“There are interested buyers, and an Information Memorandum will be prepared in the coming weeks,” Williams said.

“The public response to the closing down sale has been strong, signalling ongoing consumer brand loyalty and offering hope.”

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