Up to 150 businesses failing after quake

Urban Search and Rescue teams work to secure a building on the corner of Worcester and Manchester Streets in central Christchurch earlier this month. Photo / Sarah Ivey

About 150 small businesses are failing following the Christchurch earthquake, many of them in the retail and hospitality sectors, Canterbury Employers Chamber of Commerce chief executive Peter Townsend said.

Townsend said their main problem was a lack of custom, or not being able to operate because of access issues.

"We are in contact with businesses everyday, but I'm getting a fair indication of those that are just simply not going to be able to hold on. Some of them weren't going to be able to hold on before the earthquake - that's just a dynamic of small business."

Townsend said a downturn in trading, cashflow problems and a lack of access to some premises had exacerbated the problem for many businesses.

"There are several small retailers and several in the hospitality sector in particular that depend on a particular location to do their business and some of those are looking a bit suss at the moment in terms of their survival capabilities."

Central Christchurch Business Association head Paul Lonsdale told the New Zealand Herald last week that central Christchurch businesses are struggling with up to a 60 per cent decline in business since the September 4 earthquake.

This was despite 92 per cent of businesses being open as normal, he said.

Townsend said the chamber was doing everything it could to minimise the impact on businesses, including the possibility the Government could provide further financial assistance.

"We are looking at whether there is a case for financial support for relocating businesses and also for storing stock where they have been shut out and have to pay for storage somewhere."

Townsend said he expected the Government would announce a decision around further funding for struggling businesses this week or next.

The Government has already announced it is putting aside $15 million to be paid to earthquake-affected businesses so they can continue to pay their employees.

- Susie Nordqvist / Newstalk ZB