New Zealand fast fashion chains Valleygirl and Temt are under the control of receivers, after entering voluntary administration last week, but are continuing to trade.
The appointment of receivers to the New Zealand clothing retailers does not affect Valley Girl and Temt in Australia, as the Australian businesses are not affiliated with the New Zealand stores.
However, Australian retail chains Chicabooti and Paper Scissors, which are associated with the New Zealand businesses, have been placed in liquidation and are no longer trading.
According to records from the New Zealand Companies Office, Stewart Free and Andrew Spring from Jirsch Sutherland were appointed as voluntary administrators to Valleygirl New Zealand Limited on July 22.
On the same day, Free and Spring were appointed as liquidators to MHN Trading Pty Ltd, according to records from the Australian Securities and Investments Commission.
MHN Trading operated the Chicabooti and Paper Scissors businesses in Australia and according to Stuff.co.nz, the businesses supplied stock to Valley Girl and Temt stores in New Zealand.
Paper Scissors operated 21 stores across Australia, according to its website. It is not clear how many Chicabooti stores were operating at the time of the liquidators’ appointment and the chain’s website is currently “under construction”.
Valleygirl New Zealand Limited has subsequently been placed in receivership, with Conor McElhinney and William Black from McGrathNicol appointed as receivers on July 26.
McElhinney confirmed to SmartCompany that Valleygirl New Zealand Limited trades both the Valleygirl and Temt stores in New Zealand, of which there are around 40 outlets. He also confirmed all stores are continuing to trade.
In a statement released earlier in the week, administrator Stewart Free said the company had suffered from cashflow problems.
“The New Zealand operation has suffered as a result of a downturn in trade and problems securing stock, leading to difficulties maintaining creditors’ payments, notably to landlords,” he said.
“We are currently investigating the best options for preserving the business operations, which include investigating a potential sale of the business, and by virtue, trying to ensure that employees are best looked after.”
Valleygirl Australia is owner by Fast Future Brands and is not affiliated with Valleygirl New Zealand.
SmartCompany has contacted Jirsch Sutherland for comment.