City spared but axe falls on Shanton Whakatane

The company owed $7.79 million to 206 creditors, including the IRD and outstanding holiday pay owed to Shanton employees. Photo / File

Whakatane's Shanton is one of 17 stores around the country set to close - but both Rotorua stores will remain open.

Up to 70 staff working for Shanton stores will lose their jobs.

The announcement comes as the company begins a restructuring process amid voluntary administration.

Administrator Bryan Williams of BWA Insolvency, said some staff would be relocated to other stores, but he was unsure how many.

Mr Williams was appointed administrator when Shanton Fashions went into voluntary administration on January 11.

The company owed $7.79 million to 206 creditors, including the IRD and outstanding holiday pay owed to Shanton employees.

"It is with a great deal of regret that the store footprint needs to reduce, but this is the first step towards the rehabilitation of a brand that has been an icon in the New Zealand marketplace for more than 30 years.

"As with any company restructure, it is a very difficult decision, but it was necessary to close the stores."

There are 37 stores nationwide and those due to close are Eastgate, Northlands, Whakatane, Masterton, The Base, Palmerston North, Feilding, Thames, Gisborne, Napier, Nelson, Westgate, Fraser Cove, Sylvia Park, Botany, Manukau Supa and Albany.

Mr Williams notified managers and staff on Tuesday.

He assured all affected staff that all holiday pay would be paid on their final day of employment.

Meanwhile, the sale of the business continues, and will be concluded on Tuesday.