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Home / Business

Andrea Moore opens up on financial problems

By Carla Penman
NZ Herald·
26 Jan, 2018 04:00 PM4 mins to read

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Andrea Moore reveals she fought for financial compensation from Auckland Transport due to its disruptive construction outside several stores.

A top Kiwi designer whose top fashion line has been forced into receivership, has revealed she fought for compensation from Auckland Transport for disruptive construction outside her stores.

Andrea Moore - whose self-titled label has been a Kiwi fashion institution for almost 20 years - went into liquidation and receivership on January 9 owing $2.54 million to its creditors, citing "highly damaging" late deliveries, "crippling" creditor payment defaults and extensive roadworks as factors.

In an exclusive interview, she spoke to NZH Focus about the brand she had poured her life and soul into.

Moore opened her first store in Old Banks Arcade in Wellington in 1999. She still fondly remembers her first sale on day one: A $900 coat.

"I was gobsmacked that somebody would buy something for $900. And that started it all."

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Since then her business had steadily grown to seven stores across Auckland, Wellington and Christchurch as well as online. The brand was also sold internationally in countries including Australia, Singapore, China and Korea.

But Moore says she lost hundreds of thousands of dollars last year alone citing reasons including a big drop in customers due to roading work undertaken by Auckland Transport near some of her stores.

"We had construction in front of five of our stores ... that was mostly our Auckland stores."

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Her store in Merivale Mall, Christchurch, also felt a downturn in business after almost half of the mall was closed.

Moore says it got so bad outside her Ponsonby store, on Mackelvie St, and she and other retailers held a meeting with Auckland Transport.

"They had fences all around and everything and no one could see what was going on. And we had people just directing cars for about a week. And you'd sit up in your office and you'd be working. The staff down here would be twiddling their thumbs and then outside there's people just hanging around not doing anything… It was really frustrating."

Moore says she filed a compensation claim with the organisation but it was rejected.

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"It's just a bureaucratic nightmare of ... who to talk to... and how to work out some kind of solution," she said.

In a statement, an Auckland Transport spokesperson said it wouldn't comment specifically on individual claims but confirmed it had received three claims over work done on Mackelvie St in Ponsonby between March and May last year.

It confirmed two were still being processed and one had been rejected, citing it had never received supporting documentation relating to loss of income from the retailer.

Aside from a downturn in custom she blamed partly on the roading works, Moore said her company also battled other internal business-related issues that it didn't have the cash reserves to cover.

"For instance, for us we should've diversified our supply chain so our production company didn't have so much leverage over us," she said.

Moore said trade on her label's website had been booming, and her recently launched activewear line had virtually sold out.

"It's quite an interesting paradigm to be in because we had to go into receivership and that is upsetting."

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Her stores would close, one by one, probably in the next few weeks, she said. But ultimately, it's up to the receivers to decide.

"I've been on the shop floor continuously for the last 14 days, I'm a bit tired. But my customers always come up to me [saying] they're sad the business is closing. Mainly because it's a brand that helps them express who they are."

Moore attributed much of her previous success to her partner Brian Molloy who has handled the business side and her staff who have stuck by her.

She says she wants to keep the brand alive but said it would have to be done in such a way that it is successful.

"We're aware of what we would change, what we would close, but the business is really weird because it's kind of in the best state it can be in because we are in receivership.

"There's lots of potential but it needs a really good business acumen to realise that… so it might not be the end. Watch this space."

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Andrea Moore is the latest in a list of clothing retailers that have hit troubles in recent years, including Top Retail - NZ franchise owner of Topshop and Topman - which went into liquidation in September.

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