Lingerie maker Bendon has bought eight of Bennett & Bain's 10 troubled high-end lingerie stores, effective from the close of business last night.
The price is not being disclosed, although Bendon managing director Hugo Venter said with reference to it that Bennett & Bain "is obviously insolvent."
The valueof the Bennett & Bain brand name had been included in the purchase, he said.
Bendon, a Ceramco subsidiary, will operate the eight stores under the Bennett & Bain banner "for the time being." The remaining two stores, in Newmarket and Downtown, will close permanently.
The Newmarket store will go because it is opposite Bendon's signature store on Broadway, while the Downtown outlet is understood to be marked for a different retail development.
Mr Venter said 40 staff employed in the bought stores will be retained and have already signed employment contracts.
Bennett & Bain has been in receivership since June last year and owes banks and creditors, including Bendon, a total of about $1.9 million.
It was the company's second receivership in 10 years.
The premium chain will likely hold more Bendon stock as a result of the takeover. The only Bendon product it had previously carried was the Elle Macpherson range, which made up about 10 per cent of total stock.
Mr Venter said Bendon had already hired someone to look at the possible brand mix of the Bennett & Bain stores.
"Bennett & Bain has traditionally been pitched at the upper end of the market. We will bring the average in-store pricing of stock down."
He said it was a "pretty sad day" when a high-end retail channel was not viable in New Zealand, but it was important for Bendon to retain the channel.
Fighting to keep about 40 per cent of the New Zealand lingerie market, Bendon has previously said it would boost its retail presence by aggressively targeting the mid-price underwear market in a "deflationary" environment.
Mr Venter would not comment on Bendon's status as a creditor of Bennett & Bain.
Bennett & Bain receiver David Davidson said the purchase of the chain was unlikely to result in creditors being paid off.
Bendon was not required to settle outstanding debts.
Mr Davidson has already closed three Bennett & Bain stores late last year, all in the South Island.
