Receivers to close Kimberleys Fashions stores this week

Kimberleys Fashions retail stores will be closed this week after receivers were unable to sell the business.

The company, which has nine stores across the country, was put into receivership in October, after decades in business.

A report by receivers BDO said all stores would be closed by Sunday.

"During this reporting period the receivers carried out a marketing campaign to sell the business and assets of the company as a going concern. However, despite significant interest, we were unable to achieve a sale of the business of the company as a going concern," the report said.

The retail chain has four stores in Christchurch, two in Auckland, one in Dunedin, one in Wellington and one in Nelson.

"The directors attribute the receivership to changes in customers' discretionary spending, coupled with competitive overseas markets and online options having a detrimental effect on the company's financial position," the receivers said.

The company continued to trade as part of a managed wind down of the business.

The book value of the company's fixed assets was $1.2 million as at January 31.

The company's debts and liabilities at the time the receivers were appointed totalled $3.2m, with unsecured creditors owed $1.3m.

"The process of realising the company's assets is not yet complete. Therefore the receivers are unable to determine the likelihood of funds, if any, that will be available for unsecured creditors," the report said.

The Kiwi business was started by co-owners Marilyn and John McLaughlan.

The pair first stocked local labels and then began manufacturing their own knitwear for the stores in 1983.

Kimberleys was the latest retail chain to fall upon hard times this year after Topshop and Topman was tipped into receivership in October.

This May shoe retailer Banks Group, which runs 14 stores across the country under the brands Shoe Connection and Banks Shoes, was tipped into receivership.

High-end clothing retailer David Lawrence, which also owns Marcs, was placed into voluntary administration in February and all New Zealand stores shut down - though the Australian arm of the business continues to operate.

Retail analyst Chris Wilkinson from First Retail Group in October said Kimberleys was an "established and respected" independent fashion business.

"It's very sad to see the demise of these types of brands," he said. "Kimberleys ticked many of the boxes. They had good locations, they were well represented online, and their stores were well presented."