Family-owned carpet retailer Hills Flooring is in liquidation, blaming the failure of the construction company Mainzeal and the tough retail market.
Insolvency specialists Jeff Meltzer and Mike Lamacraft of Meltzer Mason have been appointed liquidators to the Auckland firm.
Mr Meltzer says Mainzeal owes about $250,000 to Hills Floorings, one of several factors leading to its collapse.
He says the company, which has 18 staff, will be able to meet its terms with its bank, and all outstanding staff wages and holiday allowances will be paid.
The stock already bought and paid for by customers is secure and will be received by them.
Hills Floorings began as a family business 53 years ago, and the two directors include one of the founder's sons.
Meltzer Mason says future staffing requirements are not yet known and will be determined as part of the liquidation process.