The fate of one of New Zealand’s most recognisable retailers remains uncertain after administrators confirmed Smiths City is entering ‘liquidation sale’ proceedings while they continue talks with potential buyers.
Smiths City Limited, which operates nine stores nationwide and employs more than 110 staff, was placed into voluntary administration on Tuesday.
The company’s administrators, Colin Gower and Diana Matchett of BDO Christchurch, have now completed their initial assessment of the company’s finances and a full stocktake of its stores.
They said discussions were underway with parties interested in taking over parts of the business or its assets, with expressions of interest still being sought.
Eight of the nine Smiths City stores will reopen in the coming days while stock is cleared, though the Dunedin store will remain closed.
The administrators stressed this step was part of the wider liquidation process and not an indication of the company’s long-term future.
Customers who had already paid deposits were contacted directly by the administrators, with most receiving specific information about their orders.
Some customers still awaiting clarity are expected to be contacted again in the coming days.
In a statement, the administrators acknowledged the “exceptional support” of Smiths City staff throughout the stocktake and the cooperation of suppliers during the administration process.
The voluntary administration process is designed to provide breathing space for struggling companies, allowing administrators to assess the financial position and recommend the best possible outcome for creditors, employees, and customers.
This could include restructuring, selling assets, or winding down the business entirely.
Smiths City, founded in Christchurch in 1918, has been a fixture in the New Zealand retail landscape for more than a century. The company faced receivership in 2020 before being acquired by investment firm Polar Capital. Despite efforts to revitalise the brand, including a rebrand that emphasised its South Island roots, financial pressures have continued.
The collapse comes at a difficult time for the retail sector, with higher costs, tighter household budgets, and growing online competition placing pressure on traditional big-box stores.
The administrators said further updates on the company’s future would be provided in the coming days.
