Rotorua PlaceMakers. Photo / Ben Fraser
PlaceMakers Rotorua is shutting up shop, leaving the future of 11 staff members up in the air.
The company told staff of its decision to close the Rotorua store this week, with the Te Ngae Rd store due to close at the end of October.
It blames site issues on the closure.
PlaceMakers general manager operations Gary Woodhouse said the decision to close the Rotorua store had not been made lightly.
"We've taken stock of the building and surrounds and made the decision to close owing to a number of issues with the site. We have been in negotiations with the landlord. However, we have been unable to come to an agreement regarding the completion of remedial work required to get the site up to a standard that works for us."
He said the company had looked at other sites in and around Rotorua in the past 18 months but couldn't find one meeting its requirements. Mr Woodhouse said the 11 staff were being consulted on the closure process, including re-employment options wherever possible. He said there would be some opportunity for re-employment of staff within the PlaceMakers network, but the proposal in its current form would possibly mean some redundancies.
"We appreciate the impact this will have on the team at PlaceMakers Rotorua and recognise the valuable contribution they have made to the store. We are consulting with them on the closure process over the course of this week. We will continue to ensure appropriate support and assistance is available for all staff."
Mr Woodhouse said the PlaceMakers stores across the region were well placed to continue to serve customers' needs with stores in Taupo, Mt Maunganui and Hamilton.
Rotorua Chamber of Commerce chief executive Darrin Walsh said any job losses were concerning.
"As a community we do need to support all the families concerned as I know from experience to suddenly lose one's job is a huge blow and when there are families involved and mortgage or rental payments to be met it can be very trying."
Mr Walsh appealed to those in the business community who had positions available to either let him know, or go to those concerned.
"Business in Rotorua has been tough outside forestry and dairy farming over the last three years but I certainly get a sense that there is some confidence returning to the market."
However, he said they needed developments and some construction to take place and local contractors to get the work to "kick-start the money-go-round that was our local economy".
Master Builders' Association Rotorua chairman Bill Clement said news of the closure was sad.
"It's a shame to see it happen. They've been a good crew to work with and are always willing to help."