Wellington footwear group Banks Group, which operated as Shoe Connection, SNKR, Banks Shoes and Plimmer Shoes before going into receivership in May, has been sold by its receivers to a group of investors led by the son of its former director.
Fairfax has reported PwC receiver John Fisk as confirming the sale was made to investors led by Jeremy Bank, the son of former director John Bank. It included five stores, plus an online store. Eight of Banks Group’ 13 stores have been closed.
The company’s former 170 staff were collectively owed $339,000 when the company went into receivership and will be paid out as preferential creditors under the sale. All preferential creditors, including BNZ, which is owned $1.557m, are expected to be paid out.
The report says Banks Group experienced cashflow pressures and sufferent trading losses following a period of significant expansion: "The expansion was intended to counter the challenging retail environment over the last few years, however, [it] was ultimately unsuccessful."
After being founded in 1938, Banks Group expanded into Christchurch in 2002 and entered Auckland in 2013. Prior to going into receivership, it also had stores in Hamilton and Palmerston North, plus an ecommerce arm.
It opened a new Shoe Connection outlet at Auckland’s NorthWest Shopping Centre and relocated its Sylvia Park store to a bigger site as recently as 2016.