12 Jan 2015

Shanton in voluntary administration

11:56 am on 12 January 2015

Womenswear chain Shanton Fashions has been put into voluntary receivership by its directors after its banking facilities were withdrawn.

The fashion chain's Pukekohe store.

The fashion chain's Pukekohe store. Photo: Facebook

The company operates 37 stores in New Zealand.

Administrator Bryan Williams, of BWA Insolvency, said Shanton's bank had demanded immediate payment of its overdrawn balance, but it was too early to say how much the company owed creditors.

Despite the company's greatly reduced cash resources, the directors believed the business could continue and the brand could survive, he said.

It would continue to operate as usual and staff wages would continue to be paid, however gift vouchers and layby purchases would have to be dealt with directly by his office.

The voluntary administration comes two years after the chain emerged from financial trouble.

In October 2012, it went into receivership owing about $8.5 million and was sold as a going concern in December that year.

Get the RNZ app

for ad-free news and current affairs