Ziera stores in New Zealand and Australia closed down last year as part of the voluntary administration process. Photo / Newmarket Business Association
Ziera stores in New Zealand and Australia closed down last year as part of the voluntary administration process. Photo / Newmarket Business Association
Ziera Shoes, formerly known as Kumfs, has been placed into liquidation following the sale of the intellectual property of the brand for $800,000.
Kumfs Group, which owes creditors a combined $30 million, was placed into liquidation on February 11 following a vote by creditors to have all four companies in the group liquidated.
The company, along with the Australian business Ziera Retail, was placed into voluntary administration in September last year.
Conor McElhinney and Andrew Grenfell of McGrath Nicol have been appointed liquidators.
McElhinney told the Herald the liquidation was the next step in the process to dissolve the business now that the Ziera brand had been sold to Australian retailer Munro Footwear Group for AU$750,000 ($800,000) in November.
Munro Footwear acquired Ziera's shoe designs, its customer databases, brands and websites. It will continue the manufacture and sale of Ziera shoes through its wholesale channels and the Ziera website.
Kumfs Group owes about $11.7m to local creditors, of which about $3.8m is expected to be paid to secured creditors, McElhinney said.
Including inter-company claims, the group owes $30.7m.
"It is one of the best outcomes for creditors from a retail insolvency that I'm aware of," he said, comparing it to the insolvencies of Pumpkin Patch, Dick Smith and Topshop.
The liquidators' first report will be released tomorrow.
McElhinney said the new owner did not plan to re-establish retail stores in New Zealand and Australia, and would instead utilise its wholesale channels.
"Munro Footwear Group will be relaunching the business, running it out of Australia."
The administrator's watershed creditors report outlines that Ziera Shoes became insolvent after its performance suffered due to falling sales in its retail stores, falling orders from wholesale customers due to a reduction in the number of independent footwear retailers and changes to the supply chain causing delays to season deliveries, "quality issues" and higher manufacturing costs.
Photo / 123RF
The report also cited the New Zealand dollar devaluing against the USD, causing costs to increase, and the Australian dollar devaluing against the Kiwi, causing sales in Australia to be less profitable, as reasons why the company became insolvent.
Ziera was orginially established by two podiatrists and had been manufacturing shoes for 70 years prior to it being placed into administration. Over that time it developed strong customer bases in New Zealand, Australia, Singapore and the United States.
"By combining Ziera's 70 years of expertise in comfort technology with our successful history in supplying independent and major retailers, I'm confident that we will further develop the Ziera brand and offering for current and future customers," Jay Munro, chief executive of Munro Footwear Group, said in a statement late last year.
The Ziera brand will be incorporated into Munro Footwear's wholesale subsidiary Styling Services.
