Staff at women's clothing chain Valleygirl are out of pocket and facing an uncertain future as the company is placed in administration.

The term refers to the freezing of a financially troubled company's financial position as its future is considered.

This week staff told Fairfax that pay for the last fortnight, which was due to be processed on Wednesday night, failed to arrive.

They'd been told Australian administrators Jirsch Sutherland were taking the company over from July 22 and employees' wages would be guaranteed by them unless otherwise notified. However, it was not clear whether staff would be paid any wages still owing.


"In relation to arrears, the administrators are currently assessing the financial position and will advise in due course," said the company in a memo given to staff and forwarded to Fairfax.

Valleygirl, which also operates the TEMT brand, has outlets in Auckland, Tauranga, Christchurch, Palmerston North, Hamilton and Wellington.

Following administration one option is to put the company in liquidation. If this happens and jobs go, the Insolvency and Trustee Service said employees would be able to claim for any loss of salary, wages, holiday pay and/or redundancy owed.

"As an employee, the claim for unpaid salary or wages and holiday pay is preferential. This means it ranks ahead of unsecured creditors if there are funds available."