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Home / Business

Christchurch firms pick up pieces - again

NZ Herald
4 Jan, 2012 04:30 PM5 mins to read

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Christchurch was struck by another round of shakes on December 23 but local firms are pressing on. Photo / Geoff Sloan

Christchurch was struck by another round of shakes on December 23 but local firms are pressing on. Photo / Geoff Sloan

For many Christchurch businesses, the latest round of shakes that started on December 23 couldn't have come at a worse time.

They were still picking themselves up after the big earthquake of February 22 and the quakes interrupted the crucial Christmas shopping season.

"Christmas Eve is our biggest day of the year and it literally ruined the whole thing," said Janine Kenyon, owner of the Divine Cakes & Desserts chain of stores.

"I would say it literally halved the sales we would normally do."

One of her stores is in The Palms shopping centre in Shirley, which shut down after the December 23 quakes and didn't reopen until December 27.

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Kenyon says that store received only cosmetic damage in the latest spate of tremors, while her other three Christchurch stores made it through largely unscathed.

Kenyon was at work when the February earthquake struck.

All around her, industrial ovens and cake mixers bounced about "as if they weighed nothing".

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"It was terrifying. I didn't know what to do. I thought this was it," Kenyon said.

Now, all of her cake stores that were open before the disaster are operational, except for one site located in the section of Linwood's Eastgate shopping centre that was demolished after the February quake.

Despite the ongoing shakes, Kenyon's business is expanding, having opened a new store in Timaru in the last few weeks.

She is also considering a store in Dunedin.

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"If anything, I guess the earthquakes have kind of forced us to really look at our business and its potential ... and take a punt," says Kenyon. "That's what we've done and I think it will pay off for us long-term."

Kenyon says the central city cafe she ran prior to the quake - Divine, located across the road from the CTV building, in which more than 115 people died - was still shut as it was within the central city red zone.

She has no idea when it will be able to be reopened.

Elsewhere in Christchurch, other firms are getting on with business after a tough 2011.

Ralph Bungard was at work in his Christchurch brewery when the clock ticked over to 12.51 pm on February 22 and the 6.3 magnitude earthquake shook the city to its core.

He was thrown to the floor - as was a 6m high cylinder, full of fermenting beer.

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"The force was so violent that you couldn't actually move if something was going to fall on you ... you couldn't even crawl," says Bungard, owner of the Woolston-based Three Boys Brewery.

"It was only by chance that we were in the right place and managed to not get hit."

Despite the force of the quake, the brewery building suffered minimal damage, and by mid-March the brewing equipment was running again.

And Bungard says his brewery has got through the latest spate of quakes with little damage.

More than 10 months after the February disaster, he is positive about the outlook for his firm and contemplating expanding Three Boys' facilities to meet the surging demand for its products.

He says sales rose 50 per cent last year.

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"We have sold a lot of bottled product, in Christchurch in particular, and I think that was because most of the central city was closed down and still is and there were very few places for people to go out and have a drink," he says. "I think a lot of people went to supermarkets where they could buy beer, or off-licences, and were drinking at home ... the bottled home market has just skyrocketed."

Central City Business Association manager Paul Lonsdale says the City Mall area reopened in October with retailers operating out of shipping containers and he expects most of the CBD to be open again by April.

Lonsdale says the central city has a future as a retail area.

"It will be smaller," he says. "I don't expect we will have the amount of retail that we had before but that's not necessarily a bad thing."

Ballantynes' central city department store reopened in October, and Lonsdale says that's a big step forward in terms of normality returning to the CBD.

"They were the major foot traffic driver for the retail sector in the central city."

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But while many Christchurch businesspeople are getting their lives back together, challenges remain.

John Walley, chief executive of the Manufacturers and Exporters Association, says insurance issues topped the list of concerns held by a group of Christchurch manufacturers he met last month.

"There is hardly a company I talk to that doesn't have a complaint regarding their insurance company," Walley says. "The sentiment is becoming litigious as loss adjusters try to weasel their way out of business interruption claims."

He says there is a feeling among businesses that insurance companies' "studied tardiness" is holding back the recovery.

An increase in factory repair costs, which had been expected to be minor when facilities were first assessed, is not helping the situation, says Walley.

Sanitarium, which makes Weet-Bix and Marmite, was forced to close its Papanui plant in November after an engineering report raised earthquake-related concerns.

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Pierre van Heerden, the company's general manager, says the factory's staff of around 65 remain off work on full pay.

Sanitarium, he says, is working closely with its engineers, insurers and the Canterbury Earthquake Recovery Authority to determine what needs to be done to the buildings.

"We are currently running overtime at our Auckland [manufacturing] site and have some Christchurch staff coming up to help run our Auckland production lines over the holiday period," van Heerden says.

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