Central Wellington bookshop Dymocks has been placed in liquidation with the loss of 12 jobs, following the recent closure of another Dymocks store in Auckland.
Franchise owner Chandler Beck Books, owned by long-time members of the book trade Bruce and Janis Caddy, had appointed liquidators yesterday morning, Andrew Brady ofMarkhams Christchurch said.
"There's been a significant drop in sales in the last two or three years, which I would put down to increased competition in that part of town," Mr Brady said.
"Also the added effect of the recession hasn't helped the turnover volume."
When Borders opened further along Lambton Quay in early 2007, it had a "very noticeable" impact on Dymocks' revenue, Mr Brady said.
Liquidators had already decided that the company could not continue to trade and had closed the shop indefinitely.
The stock and all assets would be sold, and proceeds returned to creditors.
Twelve staff, including four full-time staff, would receive the wages and holiday pay they were owed, he said.
Liquidators would file their first report on Friday.
Dymocks planned to open another shop in Wellington, under different ownership, and was talking with the current landlord about finding a smaller, more affordable central city location, Dymocks Group chief executive Don Grover said.
Although central city rent remained high in Wellington, as it did in cities around the world, there were more opportunities in the current market, he said.
The bookshop chain was also looking for another franchisor in Auckland after the small Smales Farm store in Takapuna was put in liquidation earlier this month.
The store was on a non-traditional site - an office area rather than a shopping centre - and the owners had struggled to attract customers since opening in September last year, Mr Grover said.
They had appointed a liquidator, and Dymocks Group was hoping to reopen a shop in the same site.
Dymocks has closed its Auckland head office and moved the administration of its outlets to Sydney.
Booksellers in general were showing resilience despite lower consumer spending due to the recession, and some book sales - children's for example - seemed to be increasing, Booksellers NZ chief executive Lincoln Gould said.
That was in part because they were bought as gifts, rather than more expensive presents, and because there was such a wide price range, he said.
