Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Up to 70 jobs to go at Shanton Fashions Limited

Up to 70 jobs to go at Shanton Fashions Limited

Up to 70 staff working for Shanton Fashions Limited will lose their jobs and 17 stores will close as the company begins a restructuring process amid voluntary administration.

Of the 37 stores nationwide, those due to close are Eastgate, Northlands, Whakatane, Masterton, The Base, Palmerston North, Feilding, Thames, Gisborne, Napier, Nelson, Westgate, Fraser Cove, Sylvia Park, Botany, Manukau Supa and Albany.

Some staff will be relocated to other stores, although administrator Bryan Williams, of BWA Insolvency, says he is unsure at this stage how many staff will relocate.

“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,” Williams says.

“As with any company restructure, it is a very difficult decision, but it was necessary to close the stores. Many stores are the heritage of the Shanton business before it went into receivership in 2012. The stores are too big for the type of commercial activity Shanton should be doing and therefore uneconomic,” he adds.

Williams, an insolvency expert, was appointed administrator when Shanton Fashions Ltd went into voluntary administration on January 11, 2015. The company owes $7.79 million to 206 creditors, including the IRD and outstanding holiday pay owed to Shanton employees. As of January 11, there are 155 Shanton employees nationwide.

All affected staff are full-time equivalents. Williams formally notified managers and staff on Tuesday, February 24, but notice will run from March 2, 2015. He has assured all affected staff that all employee entitlements (holiday pay) will be paid on the final day of employment. For two-week-notice staff this will be March 15, 2015, and four-week-notice staff will finish on March 29, 2015.

“Many of the staff are very sad to lose the Shanton connection and some have been employees for a very long time. They have been loyal and committed throughout this process and many are keen to be part of the new era for the ‘Shanton lady’,” Williams says.

Meanwhile, the sale of the business continues and will be concluded next Tuesday, March 3. Five possible contenders remain and negotiations are currently taking place.

Bryan Williams is unavailable for further comment until the business sale process is concluded.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>