Last week, Ziera Retail, the company behind the Australasian retailer, was placed into voluntary administration, with directors citing difficulties in trade in recent years caused by a rapidly changing retail landscape, consumer trends and issues in their supply chain.
McGrathNicol Conor McElhinney and Andrew Grenfell, partners of McGrathNicol, were appointed administrators of Ziera's New Zealand entities on September 24.
Administrators have been trading the business for a week, while seeking a sale of the business, either in whole or in part.
McElhinney said administrators had already received interest in the business from a number of parties but said it was too early in the process for offers to be submitted.
"We hope to sell the business as a going concern," McElhinney told the Herald.
"There are a number of interested parties that operate footwear retailers and they would be good synergies with those businesses. We hope that they see these synergies exist as well, and consequently, we find a buyer for the business."
Ziera had been receiving new season stock over the last few weeks, and administrators had today put new season stock on sale both online and in-store, offering discounts of between 10 and 30 per cent on everything.
McElhinney said Ziera staff were "continuing to work hard to preserve the business".
"Staff have received messages of support from customers, who are saddened by the potential loss of this key business in the community. Many customers only shop at Ziera, due to the specialist technology and health benefits of the shoes, and are worried about where they will get their shoes in the future."
Ziera was founded in 1946 by David Robertson and Mervyn Adams, and the company sells footwear to independent shoe retailers around the world, including in the United States, Australia and Singapore, as well as through its own retail store network in New Zealand and Australia.
The shoe company has also been impacted by falling New Zealand dollar and the increased cost of manufacturing. Photo / 123RF
The retail business was slow to launch its e-commerce business, with its website only going live in 2016.
"Despite over 50 per cent growth per annum in the online stores in New Zealand and Australia, rising rents and staff costs combined with falling sales at Ziera's bricks and mortar stores have led to the business becoming uneconomical to continue trading," company directors said last week.
Ziera has also been impacted by the falling New Zealand dollar, the increased cost of manufacturing and the trade dispute between the United States and China, with US tariffs on shoes increasing to 25 per cent which has impacted the profitability of selling into the United States.
A weaker Australian dollar has also negatively affected sales margins for Ziera.
The Ziera story:
1933: Forerunner of Kumfs and Ziera started. Brothers-in-law Mervyn Adams and David Robertson went into partnership as podiatrists. They set out on an ambitious project to study 10,000 women's feet and create unique "lasts" (shoe moulds) based on the anatomical need of the women. 1944: A local manufacturer was found. The range they developed - known as Mervyn Adams Arch Supporting Shoes - was instantly successful. 1950: The first Mervyn Adams store opened in Hamilton. 1961: The company moved into manufacturing with its own factory. 1970: Exports began to Australia, and towards the end of the decade, into the United States market. 1980s: Rapid growth, the factory relocated twice in the early 1980s. John Robertson, the son of founder David Robertson, took over as managing director in 1980. 1995: The first of Ziera store opened in Sydney's Parramatta Shopping Centre. The shoes began to be marketed under the Kumfs name in 1996. 2006: The first US Kumfs store opened in Fresno, California. 2009: All manufacturing was shifted to a factory in Guangdong, China. 2010: Ziera, a fresh brand name, was launched but the focus on stylishly comfortable shoes remained the same. 2013: A new Auckland super store opened on Broadway, Newmarket. Today: Administrators have taken control of Ziera, intend to continue operating the companies while seeking a sale of the business.
