Shanton Whangarei remains open. PIctured here is the Masterton branch of the store.
Shanton Whangarei remains open. PIctured here is the Masterton branch of the store.
The Whangarei branch of women's clothing store Shanton will remain open for the time being, despite 17 of the company's stores being shut nationwide.
The company, which has a store on Cameron St, has started a restructuring process since going into voluntary administration due to debt and withdrawal of credit.
Shanton Fashions went into voluntary administration on January 11, owing $7.79 million to 206 creditors, including the IRD, as well as outstanding holiday pay to employees.
Up to 70 staff throughout New Zealand will lose their jobs, with the closure of 17 stores in Palmerston North, Feilding, Thames, Gisborne, Napier, Nelson, Tauranga, Whakatane, Masterton and Hamilton. Stores will also close at Auckland's Westgate, Sylvia Park, Botany, Manukau Supa and Albany, and Christchurch's Eastgate and Northlands branches.
Administrator Bryan Williams, of BWA Insolvency, said some staff would be relocated to other stores, but he was unsure how many.
"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."
Mr Williams notified managers and staff last Tuesday.
"As with any company restructure, it is a very difficult decision, but it was necessary to close the stores."
