Appliances and furniture retailer Smiths City has been placed into voluntary administration after operating in the market for 107 years.

Founded in Christchurch in 1918, Smiths City currently operates nine stores across New Zealand and an online store. The company has faced declining sales and increasing financial pressures in a challenging economic environment. 

Management had already closed underperforming stores and downsized operations, but eventually decided that trading could no longer continue.

The company appointed Colin Gower and Diana Matchett of BDO Christchurch as joint and several administrators on Tuesday. 

The administration process aims to achieve the best outcome for all stakeholders, including a sale of the business and assets. The administrators are calling for urgent expressions of interest.

All nine stores and the e-commerce site were temporarily closed on Tuesday as the administrators assessed the company’s financial position and decided on the appropriate next steps. They expect to reopen stores later this week.

Customers who have paid deposits for purchases will be contacted directly by the administrators over the coming days.