Womenswear company Kimberlys was founded in 1983, but it won’t see out the end of 2017 before folding. It went into receivership in October and as a buyer has failed to come forward, all remaining Kimberlys stores will close on December 17.
At the time of receivership, Kimberlys had stores in Auckland, Wellington, Christchurch, Nelson and Dunedin, and sells a range of international labels such as Desigual plus its in-house brands: Episode, Marilyn Seyb, Marilyn Seyb Jeune and Marilyn Seyb Glamour.
Colin Gower and Andrew Grace of BDO Christchurch were appointed as receivers and kept it continuing to trade throughout October, November and early December. It has now entered a “managed wind-down” phase in which it is selling off stock at sale prices.
Online sales have ceased, but stores in Auckland’s Milford and Remuera; Dunedin; Wellington; Christchurch’s Merivale Mall and the outlet store remain open until Sunday.
Gower and Grace say that despite “significant interest”, they were unable to achieve a sale of Kimberlys as a going concern. They valued the business’s assets at $2.3 million, with creditors owed around $3.2 million.
Preferential creditors make up $214,059 of this debt – including $63,391 to employees and $127,583 to Inland Revenue – and have all been paid in full. Gower and Grace are unable to determine if the $1.3 million due to unsecured creditors will be paid until after the process of realising Kimberlys’ assets is complete.
Kimberlys’ directors attribute the company’s receivership to changes in customers’ discretionary spending, coupled with competitive overseas markets and online options having a detrimental effect on the company’s financial position.