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Home / Rotorua Daily Post

Shanton to shut in Rotorua for good

Rotorua Daily Post
6 Jan, 2017 04:35 AM2 mins to read

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Shanton is closing its last Rotorua store on Saturday. PHOTO/FILE

Shanton is closing its last Rotorua store on Saturday. PHOTO/FILE

Customers have been "crying and swearing" as they have learnt Shanton's last Rotorua store will close tomorrow.

Central Mall Shanton worker Melissa Ngatai said she had been overwhelmed by the reaction of the customers over the past few days as they learned of the closure.

The Fenton St Shanton shut its doors today while the Central Mall shop will close tomorrow.

The troubled women's fashion retailer went into receivership on December 7, when65 staff were working at the company's 13 stores.

Mrs Ngatai said while the staff had known the day was coming and were ready to leave, it was upsetting to see the reaction of the customers.

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"It's a bit of a bummer. The customers have been really distraught."

She said they had been hearing stories from customers who had bought their first disco outfit from the retailer, or had shopped in the store for years.

"We are hearing story after story. It's amazing to see how many people care. I have been in awe at how many people have been upset."

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The women's fashion retailer is owned by Revolucija Limited which is run by Aucklander Juliana Yelavich who relaunched the stores in September 2015 after buying the brand.

The chain's former owners went into liquidation in June 2015 owing $7.7m to creditors.

Receiver Andrew Grenfell said the Shanton business was advertised for sale by the receivers and specific parties were approached directly.

"No purchaser was identified," he said.

Mr Grenfell said at least one of three staff working at the Fenton St store had found a job.

"Three of the five staff at the Rotorua Mall store resigned prior to notification the store was closing, of which we understand two have jobs we know of," he said.

Mr Grenfell said the receivers were still working through the process to determine what employee entitlements were owing to them.

"Proceeds available from net stock realisations will be utilised to pay employee's preferential claims," he said.

Mr Grenfell said the receivers were still working to establish the amount of debt owed by the company to all its creditors.

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