Liquidator's Report Reveals Findings On Silvermoon

Thursday, 7 March 2024, 5:34 pm
Press Release: BWA Insolvency

The Liquidator's First Report on jewellery retailer Silvermoon reveals financial and management challenges were the key factors in the failure of the business.

Bryan Williams of BWA Insolvency Ltd, the appointed liquidator for Keeper's Quarter & Co. Limited, trading as Silvermoon, has cited COVID-19, challenging retail conditions, slow managerial response and high salary costs as contributors for the company's liquidation.

Williams says BWA has undertaken a "fairly harsh approach" and closed six of 10 stores and dismissed 25 of the 58 staff.

"We're looking to relocate inventory for the purposes of restructuring the affairs of the company," he says. "Restructuring will mean consolidating activity across three or four outlets. Stores closing include all three Christchurch locations, two Wellington stores in Queensgate and Porirua, and the Tauranga Crossing store.”

The remaining three stores in Auckland and one in Nelson will stay open as the company looks to restructure around its website sales.

"The company has continued trading via its website, where a closing down sale is underway. Inventory from closing stores will be relocated to remaining outlets," Williams adds.

Among Silvermoon's creditors is Inland Revenue, to whom the company owes around $1.3 million, consisting largely of unpaid PAYE tax.

Williams says there is a chance the company could shift from liquidation to voluntary administration for restructuring purposes.

"There are interested buyers, and an Information Memorandum will be prepared in the coming weeks," he says. "The public response to the closing down sale has been strong, signalling ongoing consumer brand loyalty and offering hope.

"We've had an active sales campaign through last weekend. The discounts offered have attracted many buyers. We're looking to continue that.”

The Liquidator’s First Report will be released on Thursday March 7th.

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