Envy Brands in liquidation, three shoe shops closing down

Envy shoes on Heretaunga St in Hastings is one of three stores that will be closing because of the fashion retailer's liquidation. Photo / Warren Buckland

The collapse of a Hastings fashion retailer means shoe-lovers in Hawke's Bay will be able to get half-price deals for a limited time before losing a well-known retail outlet for good.

After 10 years of operation Envy Brands, went into liquidation on June 20 but liquidator John Managh said although the operation was insolvent its three stores - in Hastings, Waipukurau and Whakatane - would stay open with a 50 per cent-off retail price sale to offload stock.

"The business currently being carried on will ultimately cease."

The company employed six staff members but it is believed all employees will be reemployed in their local communities.

The liquidator's first report said Envy Brands owed money to 14 creditors - a number that was expected to grow. It also owed unpaid PAYE taxes and GST to the Crown.

Given the size of the preferential arrears to the Crown, as well as the company's bankers, the report said it was "unlikely" there would be a dividend paid to unsecured creditors.

"There are eight registered security interests against the company. One of these is a general security agreement over all property in favour of a trading bank. The others are Purchase Money Security Interests over goods supplied or items on lease."

Administration proceeding would also include a public auction to sell chattels from the three stores.

"Company property consists of ladies' shoes, handbags and some fashion ware."

The report said several parties had sought to claim ownership for goods supplied but unpaid for. "These issues are being dealt with."

Liquidation proceedings bring to an end a decade of operation for Envy Brands, which was established in May 2008.