Two more Smiths City stores close as liquidation sale winds up, massive discounts

Smiths City is in voluntary administration after facing increasing financial pressures.

Embattled retailer Smiths City has closed two more stores as its fire sale draws winds up this weekend.

Administrators Colin Gower and Diana Matchett of BDO Christchurch today said staff numbers will significantly reduce from next week, with remaining staff to assist with delivering orders purchased during the liquidation sale.

However, the administrators confirmed staff will be paid 100% of their annual leave by the end of this month.

“Several large local retailers have also reached out with employment opportunities for Smiths City staff, and these are being explored by individual team members,” the administrators said.

Smiths City’s liquidation sale will run until 5pm on Sundayat its Auckland, Christchurch, Oamaru, Alexandra and Invercargill stores.

All remaining stock is being sold at 70% off the lowest in-store ticketed prices.

But administrators said no refunds will be offered or returns accepted on items purchased.

Gift cards would also not be accepted in the final days of the liquidation sale, they said.

Smiths City’s stores in Gore and Greymouth are already out of stock and are closed, while the Dunedin store remains closed.

“The administrators want to acknowledge once more the exceptional support and input from Smiths City staff during the stocktake and the liquidation sale,” the administrators said.

“The voluntary administration process aims to achieve the best outcome for all stakeholders.”

The 107-year-old home appliance and furniture retailer went into voluntary administration on September 2.

The administrators said the retail chain had faced “increasing financial pressures in a challenging economic environment”.

“Despite closures of some stores and further downsizing measures, declining sales meant that the director of the company took the decision that trading could no longer continue.”

The company was founded in Christchurch in 1918, becoming a well-established brand in the South Island.

Smiths City is today owned by Colin Neal’s investment company Polar Capital, which bought the retail chain in 2020 for $60 million.