Covid-19, high staff costs key in failure of Silvermoon
Thursday, 7 March 2024
Six of 10 Silvermoon jewellery stores are closing, with a liquidator dismissing almost half of all staff.
The first liquidators report pointed to Covid-19, challenging retail conditions, slow managerial response and high salary costs as key reasons for its closure.
It also revealed the jewellery store owes around $1.3 million to Inland Revenue.
A liquidator has found Covid-19, challenging retail conditions, slow managerial response, and high salary costs were key reasons in Silvermoon’s closure.
The first liquidators report also revealed the company owed around $1.3 million to Inland Revenue, consisting largely of unpaid PAYE tax.
The appointed liquidator for Keeper's Quarter & Co. Limited - trading as Silvermoon - Bryan Williams of BWA Insolvency Ltd, said it had taken a “fairly harsh approach” and closed six of 10 stores, and dismissed 25 of the 58 staff.
Stores closing included 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, would stay open as the company looked 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 said.
Among Silvermoon's creditors was Inland Revenue, to whom the company owed around $1.3 million, consisting largely of unpaid PAYE tax.
Williams said there was 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 said.
“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 company operated for 24 years in New Zealand, founded in 2000 by Simon Thwaites. He sold it to present owner Peter Lee in 2017.