No buyer for menswear store Mecccano

Vere Sharma, managing director of De Vere Investments, at Meccano. Photo/Jason Oxenham

Menswear retailer Meccano will close down after administrators failed to find a buyer for the business.

Neale Jackson from KordaMentha said with no expressions of interest received for the business, they had no choice but to wind it down.

"We now move to the next phase of administration which is to sell all stock through the current store network," Jackson said.

All current stock, including new season, would be discounted between 40 and 70 per cent immediately until sold.

Jackson said there were seven remaining stores - four in Auckland, two in Hamilton and one in Christchurch.

Earlier, director Vere Sharma, who bought the business in April 2016, said he was disappointed but the decision to place the company in voluntary administration had not been made lightly.

"I'm committed to the clothing industry, and have been for 30 years," he said.

Despite an enormous amount of effort from hard working staff, Sharma said Meccano was unable to adapt fast enough to what had been a trying time for many mall-based retailers.

The menswear retailer specialised in everyday clothing.

De Vere investments also owns several other fashion labels including Ruby and Liam. Sharma said his other business dealings were not affected by issues with Meccano.

At the time Sharma purchased the company, he said he was looking forward to continuing to build the Meccano brand, particularly its online offering.

"We're committed to evolving and strengthening Meccano and ensuring it remains relevant and competitive in today's market," Sharma said.

"Though it's a challenging and dynamic time for the retail industry, with the growth of online sales and increased competition from New Zealand and offshore, we believe that if you do something with passion and focus it will succeed."

Former Meccano owners Dai and Cheryl Endicott-Davies said at the time they were pleased the company had remained under New Zealand ownership.