Carly Harris Design: Fashion label boss calls in liquidators, says ‘Covid just wrecked us’

One of the business locations was in a group of independent retailers on Cuba St which have faced some difficulties. Photo / Supplied

A fashion business that once had shops in Auckland and Wellington called in liquidators after rent rises and Covid lockdowns took their toll on the business.

Simon Dalton of Gerry Rea Partners was appointed as liquidator of Carly Harris Design on August 22 at the request of shareholders.

The company, incorporated in 2005, operated a business designing, manufacturing and selling clothing, Dalton said in his first report.

Director shareholders Carly Harris and her mother Christine Harris identified that the company was unable to pay its debts and after seeking professional advice resolved to place the company into liquidation.

Asked what had gone wrong, Carly Harris said the pandemic meant people stopped coming in and buying clothes.

The business had operated on Cuba St in Wellington for around 20 years and in Ponsonby, Auckland for around 17 but could not survive Covid.

“Covid just wrecked us - it was the Government telling people to work from home. Customers would tell us ‘we’ve just not been into town for six months’,” Harris said on Monday.

Her business was in a group of independent retailers on Cuba St reported as shutting because owners said they simply could not afford rents, and claimed the famous street was losing the charm that once drew crowds of shoppers.

Madame Fancy Pants, Rex Royale, V1 Vegan Store, Everyday Wine, Rough Peel Records and Carly Harris had either closed in the past few months or were about to, RNZ reported.

Some owners said the pandemic, Parliament protest, cost-of-living crisis and labour shortages had not helped - but rent hikes were the final straw.

Madame Fancy Pants was a Cuba St mainstay for 16 years, RNZ reported in March.

Carly Harris was based at 300 Richmond Rd in Grey Lynn.

The Gerry Rea liquidator said unsecured creditors were owed $52,000 but preferential creditors including employees and Inland Revenue were owed more than $ 8,000. Assets were slight at only $11,000 stock and $2600 plant and equipment.

No estimated deficit has yet been given.

Harris said her label did not participate in Fashion Week and had no involvement in that high-profile event recently.

Liquidator Simon Dalton named the mother and daughter as creditors, along with the ANZ Bank, Auctus Advisroy, Eftpos Nz, Hart Textiles of Mt Eden and 300 Richmond.

Harris said she wasn’t keen on publicity about the liquidation and expressed distress about what had happened.

Dalton said Carly Harris Design creditors had till September 29 to file their claims with him.

Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.