The Mount Maunganui branch of Beaurepaires is closing - affecting up to nine workers.
The tyre outlet is one of 12 throughout the country being shut with senior managers from owner Goodyear Dunlop Tyres (NZ) visiting stores yesterday to deliver the shattering news.
The four staff on duty at the Mount branch,
on the corner of Hull Rd and Totara St, were told the restructuring process would be finished by the month's end.
No closing date was provided, and staff involved in the surprise move would not comment.
Marty Dinniss, a Goodyear Dunlop Tyres spokesman, said some staff could be re-deployed in other Beaurepaires outlets and others would be paid redundancy.
The Tauranga branch in Cameron Rd is staying open, but two of the three outlets in Rotorua - Fairy Springs and Te Ngae - are also closing. Other stores closing are in Auckland, Waipukurau, Christchurch, Ashburton, Dunedin and Invercargill.
Beaurepaires, a leading retailer of tyres, wheels, batteries and wheel alignment servicing, has 95 stores throughout New Zealand and 16 of them are licensed to individual owner/operators, including Te Puke and Matamata. They are unaffected, and will continue trading as normal.
Goodyear Dunlop Tyres decided to reduce its operations in New Zealand and Australia, following its annual review. Between the two countries, it has more than 400 stores and in New Zealand four Frank Allen Tyres outlets, another of its brands, are also closing.
Those outlets are in Auckland, and the one in downtown Tauranga is unaffected.
Mr Dinniss said the outlets closing were deemed not to be viable in their present state.
"It's not just the recession but increasing competition," he said.
"The tyre industry has become more competitive with a lot more product coming in from Asia.
"The (imported) second-hand product is starting to pinch a bit, and Goodyear Dunlop needs to maintain a sustainable position in Australia and New Zealand."
Beaurepaires celebrated its 25th anniversary of operating in New Zealand last year, and its profile has been lifted by the performances of Australian actor, Vince Martin, in the television ads.
