New Zealand’s second-oldest department store Smith & Caughey’s was hit by a cyber-attack on Wednesday, the same day the company began reviewing its potential closure.

The company said it is facing “an unprecedented challenge” after the attackers targeted its operational systems. 

In response, the company has assembled a team of experts to restore the systems. Smith & Caughey’s online website remains open, but the retail stores in Queen Street and Newmarket were closed on Thursday.

“The attack has severely impacted our ability to communicate with our staff, customers, suppliers and other critical stakeholders,” said chairman Tony Caughey. 

“We are trying to reach out to them to explain the situation and the reasons for the communication delays.”

The 144-year-old department store previously announced it had started a five-week consultation process with its staff about the potential closure next year. The company management said it had recorded a 40 per cent decline in revenue over the past five years.