Silvermoon Jewellers in liquidation: Who’s owed money?

Silvermoon Jewellers went into voluntary liquidation last week. Photo / Google

The first liquidator’s report on jeweller Silvermoon shows the company owes more than $6 million to creditors, Inland Revenue and staff in wages.

Silvermoon Jewellers, trading as Keeper’s Quarter & Co. Limited, went into voluntary liquidation last week citing an “arduous battle” against economic conditions.

Bryan Williams of BWA Insolvency was appointed liquidator of Keeper’s Quarter & Co. Limited by special resolution of the shareholder Peter Shang Ming Lee, who is also the sole director.

Preferential creditors are owed more than $1.3m, including employee entitlements totalling $126,976.17, according to the liquidator’s report.

Inland Revenue is owed $893,713.62 (PAYE) and $379,034.52 (GST).

Other creditors include “suppliers and service providers” who are owed $2.4m and shareholder advances of just over $2.4m.

Creditors include ASB, Meridian Energy, Swarovski International (NZ), One New Zealand Group, MYOB and Fairfax Media.

The company has assets totalling $3.2m, including inventory of $2.048m, and fixed assets (shop fitout) of $1.1m.

That leaves a provisional deficiency of $2,989,947.78.

In a letter to customers on the Silvermoon website last week the company, which has 10 stores nationwide, said it would honour gift vouchers and close.

It encouraged holders of gift vouchers to spend them as soon as possible and said it had made special arrangements with the liquidator so they could be redeemed. There was a special condition that the customer had to match the value of the gift card – if a $20 voucher was held, $20 had to be spent.

The company is having a final farewell sale with 20 per cent off everything on its website.

“After considerable reflection and exhaustive exploration of all possible avenues to sustain our operations, it has become clear that Silvermoon Jewellers must embark on a closing journey, leading to liquidation,” the message on its website said.

“Despite the diligent efforts and unwavering commitment of our entire team, the prevailing economic conditions and unforeseen market dynamics have rendered our continuation untenable.”

The store was founded by Simon Thwaites as a “kiosk-style” shop in malls in 2000, stocking sterling silver jewellery from Bali, Thailand and Mexico.

Thwaites sold the store to present owner Lee in 2017.

Retailers have been under pressure in the tough economic environment.

Retail sales fell in the last three months of 2023, with recreational goods and fashion hit hard.

Last month the country’s largest retailer The Warehouse Group announced the sale of its underachieving Torpedo7 brand for $1 and Kathmandu owner KMD Brands revealed a 14.5 per cent drop in group sales in the six months ending January 31.

Hallenstein Glasson also had a flatlining summer performance after sales stagnated despite Black Friday and Boxing Day shopping events.

Cameron Smith is an Auckland-based journalist with the Herald business team. He joined the Herald in 2015 and has covered business and sports.