Nine NZ Colorado clothing stores to close

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The Colorado clothing chain will close nine New Zealand stores as part of a restructuring in which 100 stores will close in Australia and about 1000 people lose their jobs.

The receivers of the Colorado Group, Ferrier Hodgson, say 100 underperforming Colorado stores in Australia will shut, with nine Colorado stores in New Zealand, 21 Williams stores, seven Mathers stores, two JAG stores and one Diana Ferrari store.

Ferrier Hodgson's Brendan Richards said 1042 people would lose their jobs.

"The restructure of the group would eliminate the loss-making Colorado-branded stores and those other stores impacting on the profitability of the group," Richards said yesterday.

"The remaining brands and stores are all profitable and would form the cornerstone of the future business."

Richards said the group was expected to generate earnings of about A$19 million ($24.7 million) in 2011, and, following store closures, would become significantly more profitable.

Colorado-branded footwear will still be sold online and through 200 Mathers and Williams outlets.

The debt-ridden Colorado Group was placed in administration in March after lenders rejected a proposal to allow it to continue trading.

Colorado, which owes about A$400 million to a syndicate of 18 financiers, has 434 stores across Australia and New Zealand and 3800 staff.

- AAP