Bennett & Bain calls in receivers

By Karyn Scherer

Another national retail chain has found itself in serious financial strife.

Lingerie chain Bennett & Bain, which has 14 stores throughout the country, has ended months of rumours by asking the Bank of New Zealand to call in the receivers.

However, the receivers are confident they will be able to keep the company afloat.

The chain has eight stores in Auckland, one in Hamilton, one in Wellington, one in Dunedin and three in Christchurch. So far, only one store, in Glenfield, Auckland, has been closed.

It is understood the chain employs around 60 staff. Most learned of the move yesterday, but many were unlikely to find out until later this week whether they would keep their jobs.

Receiver David Davidson, from PricewaterhouseCoopers, said the company had been hit by cashflow problems, and was having difficulty paying its suppliers.

However, Mr Davidson said he was hopeful he would be able to restructure the company, which he expected to continue trading. A receivership sale was not being planned. He hoped to sell the company, or work out a deal that would see existing management remain in control.