Banks Shoes chain becomes latest retailer to call in receivers
By Paul McBeth
May 26 (BusinessDesk) - Banks Group, which runs 14 stores across the country under the brands including Banks Shoes and Shoe Connection, has been tipped into receivership at the request of director John Bank.
PwC's John Fisk and David Bridgman were appointed receivers today and will work with management to figure out the company's position and whether the business can be sold as a whole or in part, they said in a statement. That could involve closing some of the 14 stores in Auckland, Wellington and Christchurch, employing 170 staff.
The company's level of debt hasn't been determined yet.
The shoe retailer started life in 1938 with a Banks Shoes store in Lower Hutt, expanding its footprint through the Wellington region through the latter half of the 20th century before branching out to Christchurch in 2001 and Auckland in 2013.
Banks Group is the latest retailer to call in external administrators as long-standing firms operating traditional 'bricks and mortar' stores get undercut by online rivals without the overheads of a physical network.