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Home / Hawkes Bay Today

Napier's Shanton to close

Hawkes Bay Today
27 Feb, 2015 02:36 AM2 mins to read

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The Napier branch of Shanton Fashions is closing but Hastings remains open as the retail chain sheds up to 70 full-time jobs nationwide.

Seventeen stores will close as part of a restructuring process amid voluntary administration. About 10 people are employed in the two Hawke's Bay branches.

Of the 37 branches, closing are: Napier, Eastgate, Northlands, Whakatane, Masterton, The Base, Palmerston North, Feilding, Thames, Gisborne, Nelson, Westgate, Fraser Cove, Sylvia Park, Botany, Manukau Supa and Albany.

BWA Insolvency administrator Bryan Williams said some staff would relocate to other stores but he was unsure of the number.

"It is with a great deal of regret that the store footprint needs to reduce, but this is the first step towards the rehabilitation of a brand that has been an icon in the New Zealand marketplace for more than 30 years," he said.

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"Many stores are the heritage of the Shanton business before it went into receivership in 2012. The stores are too big for the type of commercial activity Shanton should be doing and therefore uneconomic."

It went into administration on January 12 in response to the withdrawal of its credit facilities and a demand for immediate repayment. The company owes $7.79 million to 206 creditors, including the IRD and outstanding holiday pay to Shanton employees.

When it entered administration there were 155 employees nationwide.

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Williams formally notified managers and staff on February 24, but notice will run from March 2.

He said many staff were sad to lose the Shanton connection and that some were long-time employees.

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Hastings clothing store to cease trading

10 Apr 05:07 AM
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