Identity clothing chain shutting, owes bank $2m

The women's clothing chain Identity has gone into receivership. File photo / Chris Gorman

The Identity women's clothing chain owes the bank $2 million and receivers, unable to find a buyer for the business, are shutting it down.

Nine of its 16 stores have already closed.

Identity was started in 1985 and its website claimed it had "grown to become one of the leading fashion retailers in New Zealand".

However after a significant downturn in business its directors David, Martyn and Pauline Winter believed it could no longer continue to trade and BNZ appointed receivers in July.

Those receivers, William Black and Kare Johnston, released their first report yesterday and said the business had "suffered from the current difficult trading conditions in the retail apparel industry".

While the receivers hoped to find a buyer, it seems no-one is interested either here or across the Tasman.

"While several expressions of interest were received, regrettably a purchaser for the business and assets of the company could not be found and the receivers are proceeding to progressively close the business operations down," Black said in the report.

The remaining stores will continue to trade until the stock can be sold.

As well as BNZ, other secured creditors include Ricoh New Zealand, Verge Sportswear, David Winter, and Longbeach Holdings.

The receivers' report does not detail how much is owed to these creditors.

Employees are owed $139,00 and the IRD is owed a further $134,000. Customs is owed $38,000.

"It is unlikely that surplus funds will be available from the receivership for unsecured creditors", Black said.