Home / Knowledge / News / Apparel/Garments / New Zealand's Shanton Fashions goes into liquidation
New Zealand's Shanton Fashions goes into liquidation
25
Jun '15
Shanton Fashions, which operates a chain of women's clothing stores in New Zealand, has gone into liquidation that could threaten dozens of jobs, the media has reported.

Although 18 stores are still trading, an initial report by co-liquidator Gareth Hoole says the liquidators "do not intend to continue to trade the business" and are preparing to disclaim store leases to avoid further costs to the company and its creditors.

The report does not say how many people Shanton employs. At the start of the year 155 people worked for the company and up to 70 jobs went under a restructure in March.

Liquidation was recommended by Shanton Fashion's voluntary administrator Bryan Williams who restructured the company, closed 17 stores in March and attempted to find a buyer for the business after his appointment at the start of the year.

However, creditors who are owed $7.7 million -- voted against this recommendation and the company was handed back to its directors.

Those directors traded the company the best they could but its shareholders put the company into liquidation on June 22.

"The liquidators will initially seek to sell the business as a going concern but are cautious in their optimism of achieving such outcome given the evident lack of success to do so on the part of the administrator," Hoole said in the report.

"It is considered that since those efforts to achieve a sale as a going concern, the value of the company and its underlying assets has dissipated further. Should there be no interest in the business as a going concern the liquidators will seek to realise the assets of the company piecemeal for their best potential under a forced sale scenario."

The report says the company's assets include inventory, cash at bank, shop fittings, fixtures and intellectual property, but does not disclose a value.

It lists Shanton Fashion's liabilities at $7.7m, close to the level of debt disclosed during the voluntary administration. (SH)

Fibre2fashion News Desk – India

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search