Inland Revenue applied to have the business liquidated. Photo / Google
Inland Revenue applied to have the business liquidated. Photo / Google
Inland Revenue had liquidators appointed to a national fashion retail brand which accumulated GST debts blamed on problems including the pandemic.
An initial report from the Crown’s Insolvency and Trustee Service said the official assignee was appointed liquidator of Sassys, which had shops in Auckland, Papamoa, Nelson and Christchurch.
SassysBarrington, Sassys Papamoa and Sassys Richmond are also in liquidation.
GST debts prompted the tax department to seek the appointment via a High Court application.
Keshni Mala Das and Shalendra Das of Somerville, East Auckland, are directors of the company, established 20 years ago.
Reasons given for the problems were liabilities due to guarantees, ill health, withdrawal of credit facilities, economic conditions, excessive overheads, a lack of sufficient working capital and Covid-19, the first report said.
“The company traded in fashion retail, with shops trading under the name of Sassys. The company also had corresponding stores Sassys Papamoa, Sassys Barrington and Sassys Richmond, with another store in Merivale in Christchurch and Ormiston in Flat Bush Auckland,” the initial report said.
Outlets were in the Papamoa Plaza, Richmond Mall and Merivale Mall.
The clothing retailer had shops in a number of main centres. Photo / Google
Exactly how much the tax department is owed in GST isn’t specified, but Sassys received an initial $101,066 as a Covid relief wage subsidy for 18 employees when the pandemic broke out three years ago.
It got a further wage subsidy for 30 people in August 2021 when it claimed that money to pay 30 staff members.
The business said it was “the place to shop for leading-edge women’s fashion and accessories in New Zealand”.
Sassys was incorporated in 2003.
The liquidators have not visited all the stores. Stocktakes have been completed and secured creditors notified. All shops have now been shut.
Plant, equipment and stock of $238,000 appears in a summary of assets.
“The various stores held cash balances in their cash tills which have been located and the funds paid to the liquidator,” the first report said.
LongBeach Holdings of Christchurch, Bizcap NZ of Wellington and clothing manufacturer Judith Anne Ford of Takapuna appear as potential secured creditors.
Real estate business Colliers in Christchurch was named as a potential unsecured creditor along with IRD.
There is no estimate at this point about how much secured or unsecured creditors will receive.
Options for the liquidators include closing the fashion retailer or looking to sell it as a going concern.
The first report said a further progress report would be written and distributed within the next six months.
Others clothing retailers have failed lately.
This month, outdoor clothing retailer Edmund Hillary Brands NZ was put into liquidation, with Steven Khov and Kieran Jones appointed as liquidators by the company shareholders on September 7.
The company is a wholly owned subsidiary of UK-registered Edmund Hillary Brands. Covid’s impact and the lack of tourists and overseas travellers hit sales in the last few years, making the business unprofitable.
Another fashion business that once had shops in Auckland and Wellington called in liquidators recently after rent rises and Covid lockdowns took a toll on the business. Simon Dalton of Gerry Rea Partners was appointed as liquidator of Carly Harris Design on August 22 at the request of shareholders.
That company, incorporated in 2005, operated a business designing, manufacturing and selling clothing. Harris said the company was unable to pay its debts and, after seeking professional advice, resolved to place the company into liquidation.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
