Fabric store chain to fold

By Karyn Scherer

Another New Zealand retail icon has fallen victim to changing fashion.

Fabric seller Barker & Pollock told its shocked staff yesterday that it had decided to go into voluntary liquidation, after years of struggling to stay in business.

The chain, which was started in 1936 by former George Courts employees Gordon Pollock and Bertie Barker, has 18 stores in the North Island, including 11 in Auckland.

A sister chain, Cut Price Traders, has three stores in Auckland and is also affected.

The stores are continuing to trade in the hope that most of the company's debts will be paid off. Any laybys and gift vouchers will be honoured until they close, although it is unclear how long that is likely to be.

Around 160 staff have been told they will continue to have jobs in the meantime.

According to liquidators David Davidson and Richard Agnew from PricewaterhouseCoopers, it is possible, although unlikely, that some stores will survive.

The company that owns the chains, Barker & Pollock Holdings, has blamed a combination of factors for their demise, including tough retail conditions, the availability of cheap, imported clothing and declining interest in dressmaking.

In its heyday in the 1980s, Barker & Pollock had four stores on Auckland's Queen St, and was selling nearly $20 million worth of fabric and haberdashery items a year. Its sales have since steadily declined and its only remaining Queen St store was demolished several weeks ago.

A clearly distraught managing director, Ivan Stanish, said he was "immensely saddened" for the company's loyal staff and suppliers, many of whom were good friends.

"It's a horrible, horrible feeling," said Mr Stanish, who has been involved in the company since 1955. "But we just felt like we were banging our heads against a brick wall."

Creditors, mostly fabric and haberdashery importers, are understood to be owed around $2 million. One of the largest is Auckland firm Nutex Wholesalers. Owner Greg Allnut said the firm was distressed by the move, but was impressed by the way the company had handled it.

"They've been very honourable about it and we appreciate that because in our trade people are well known for doing a runner."