Smiths City (2020) Limited In Voluntary Administration

Smiths City (2020) Limited (“Smiths City” or “the Company”) has as of this morning been placed in Voluntary Administration. The Company’s director appointed Colin Gower, Licensed Insolvency Practitioner and Diana Matchett, Chartered Accountant and Licensed Insolvency Practitioner, both of BDO Christchurch, as Joint and Several Administrators (“the Administrators”) earlier today.

Smiths City is a well-known New Zealand retailer of home appliances and furniture founded in Christchurch in 1918, which today operates nine stores across New Zealand and an online store.

The Company has faced increasing financial pressures in a challenging economic environment. 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.

The voluntary administration process aims to achieve the best outcome for all stakeholders. This may include selling the business and assets to interested parties. The Administrators are calling for urgent expressions of interest.

As of 8.30 a.m. this morning, all nine Smiths City stores and the online shop have been temporarily closed for business so that the Administrators can undertake an urgent assessment of the Company’s financial position and confirm the appropriate next steps. The aim is to reopen stores later this week.

The Administrators appreciate this is an unsettling time for everyone at the Company, and they met with staff this morning to explain the process going forward.

Customers who have paid deposits for purchases will be contacted directly by the Administrators over the coming days.

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