The Deka chain of retail stores is to close its doors.
Farmers Deka Limited chief executive, Nick Lowe, today announced the closure of the Deka business affecting 43 stores and the Auckland-based distribution centre.
The remaining 17 stores around New Zealand will be rebranded as Farmers by July 31.
As
a result of the Deka closure, 468 full time and 947 part time employees will be made redundant.
Farmers Deka's parent company, Foodland Associated Limited said that half year losses of $3.3 million and the prospect of a continuing deterioration in the performance of Deka had prompted the closure.
"This decision has not been made lightly and we are acutely aware of the impact this will have on our team members. However, our attempts to turn Deka into a profitable business have been unsuccessful and we are no longer prepared to sustain continued trading losses," said Mr Lowe.
Mr Lowe said the company would have almost 400 vacancies created by the rebranded stores and other positions currently available within Farmers.
Mr Lowe also outlined expansion plans for the Farmers brand, including the opening of four new stores and the enlargement or relocation of three other stores in the next two years.
"Initiatives such as these will see more than 1000 new jobs created within the next three years," Mr Lowe said.
