Christchurch-founded retailer Smiths City has temporarily closed all nine physical stores, and its online store, after entering voluntary administration this morning.
The move follows months of closures in Blenheim, Wellington, Nelson, Palmerston North and Tauranga due to financial hardship.
Voluntary administration is when a struggling company brings in a neutral expert to figure out how to survive or pay its debts.
A spokesperson from administrators BDO Christchurch said the changing economy was taking a toll on the company, with financial pressures growing.
“Despite closures of some stores and further downsizing measures, declining sales meant that the director of the company took the decision that trading could no longer continue.”
After being established in 1918 Smiths City became a regular household name, known for its appliances and furniture. At its peak, there were 35 stores running across Aotearoa.
Staff were informed of the temporary closure this morning, with administrators acknowledging that it was an unsettling time. They are currently undertaking an urgent assessment of the company’s financial situation, hoping to reopen next week.
The administrators were calling for urgent expressions of interest, saying selling the business and its assets was an option.
