Banks Shoes sold by receivers

PwC's John Fisk and David Bridgman were appointed receivers. Photo / 123rf

Footwear retail group Banks Shoes has been sold by receivers.

Banks Group, which operated retail stores under the brands Shoe Connection, SNKR, Banks Shoes and Plimmer Shoes, went into receivership in May.

The receivers' first report, released today, said the company experienced cash flow pressures and suffered trading losses "following a period of significant expansion".

"The expansion was intended to counter the challenging retail environment over the last few years, however, was ultimately unsuccessful," the report stated.

Former staff of the stores, who were collectively owed $339,000, will receive their money as preferential creditors under the sale.

The report said the sale of five stores, including the online store, was completed late in July. Unsecured creditors are unlikely to receive any funds after payment to the preferential creditors and a small payment to the first ranking general security holder.

Banks Group folded owing BNZ $1.5 million and another independent trustee around $2.4m. Inland Revenue was left owing $233,000 in GST and PAYE.

The shoe retailer started life in 1938 with a Banks Shoes store in Lower Hutt, expanding its footprint through the Wellington region through the latter half of the 20th century before branching out to Christchurch in 2001 and Auckland in 2013.