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Home / Northern Advocate / Business

The Kooky crumbles - into liquidation

By Rosemary Roberts
Northern Advocate·
8 Jul, 2012 06:00 PM5 mins to read

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The founder of the now liquidated women's fashion stores Kooky was a shooting star whose outstanding design potential was obvious by the time she was in her senior years at Tikipunga High School in Whangarei.

The 14-store chain went into liquidation a fortnight ago, exactly eight years after Suzanne Lee Dunn opened the first Kooky store with husband Jason Dunn.

About $900,000 worth of stock is now being cleared in half-price sales.

As Suzanne Sowry, in Whangarei, Mrs Dunn scored 100 per cent in School Certificate Art and blitzed the competition at the 1996 Bernina Northland fashion design awards, winning first and third places.

One of the judges told her she needed to get herself to Massey University's School of Design in Wellington, practically guaranteeing her a place. When she did Whangarei District Council assisted with a scholarship.

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She blitzed them down there too, graduating with a Bachelor of Design (Fashion) in 2000 with the top fashion design award for her year.

She and Jason opened the first store in 2004. The Whangarei store was the 12th, opening in 2007 in premises at the Bank St exit of the Farmer's arcade, after the couple had tested the water with a temporary factory clearance outlet earlier in the year. Her mother Maureen took on the role of manager.

Most of the clothing was made at the company's factory in Wanganui, where the head office is also located. Design and on-line sales were run from a base in Albany in Auckland.

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The original ownership - Suzanne, Jason and Anthony Dunn - retained control of the whole operation, from design to manufacture and retailing, with an avowed commitment to on-shore production and New Zealand suppliers wherever possible.

Despite the onset of recession the company continued with modest growth and when the liquidators moved in on June 20 there were 14 stores around the country supplying casual, corporate, special occasion and "mother of the bride/groom" clothing in sizes 10-22 for over-25s.

There were two stores in Wellington, one in the Wellington CBD and one at Tawa.

Liquidator Damien Grant of Waterstone Insolvency said in his first report, posted June 20, that director Suzanne Lee Dunn attributed the collapse to the downturn in the economy which "expended" the cash flow of the business.



Mrs Dunn had said cash-flow tied up in the stock of the company had also contributed to the business failure.

The liquidator said initial investigations into the collapse supported this view.

The creditors, which include secured creditor the ANZ National Bank, are believed to be owed $2.7 million, but there are only $1.6 million in assets (stock on hand, plant and equipment and debtors) likely to be available to pay them.

The Inland Revenue Department (a preferential creditor) is expected to lodge a claim in respect of outstanding gst and PAYE.

The liquidator's report also said there was unlikely to be a distribution to unsecured creditors. Mr Grant said an attempt to sell the business immediately prior to liquidation had fallen through but he had decided to actively market the business as a going concern "in the first instance".

Earlier this week he said efforts had been unsuccessful so far although he was still hopeful.

The liquidation team was also talking to a number of interested parties wanting to buy parts of the business. In the meantime the stores were continuing to operate in liquidation with stock being sold at half-price.

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"Sales are still pretty good," he said.

"There was a big rush in the first week and sales are still healthy.

"We haven't closed any stores yet but that might change this week. So long as we keep generating revenue we will keep them open."

Dunn's dream life of fashion design

Suzanne Dunn said in a pre-recession interview that supplying the company's own stores was a huge advantage when it came to being able to communicate the design features to customers.

"I deal with our store managers on a daily basis and can explain the designs, how to wear them properly."

She said she was constantly stimulated by as many "gorgeous fabric swatches and fabulous trims I can lay my hands on, bits of ribbons, lace, patches and the most exquisite buttons you can imagine".

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"Surrounded by all this great stuff the creative juices really start to flow ... sometimes I can't draw fast enough and I always end up with way too many designs that I love.

"When I'm at that intense design stage of the new season everything I look at gives me inspiration. I think, eat and sleep nothing but designs, designs, designs. Inspiration also comes from our customers and trends or demands I pick up on in the previous season and I build on trends customers have really responded to in an existing range. We also travel widely to source ideas when we have time.

"A wonderful advantage of having our own factory means I can closely watch a design work its way from the pattern table to the cutting room and through to the machinist.

"My design team and I are constantly perfecting and tweaking our designs as they work their way down the production line.

"I do love fashion and I always make myself stop and take the time to appreciate just how fortunate I am to be able to walk into that factory, a world I love so much, and surround myself in raw materials, working with talented machinists who are just as passionate as I am about their work and my designs."



The Advocate was not able to contact Suzanne Dunn at the time of publication for comment on what the future holds for one of the most gifted designers to come out of Whangarei.

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