Following difficult trading conditions, shirtmaker Nicholas Jermyn has been placed in voluntary administration. While the business continues to trade, two stores - one in Auckland and one in Wellington - have been closed.
Founder and managing director Nick Harris said in an email to customers that explained the growth in international online purchasing and an inability to negotiate lease exits for less successful stores had forced his hand.
"Nicholas Jermyn’s employees are working toward the common goal of turning the business around and saving the brand. We believe that under a revised business model the company can be successful and sustainable as a going concern. A transformed business model will include reduced stores and an increased focus on our Online offering. So far customers have been supportive and sales have exceeded expectation which is positive at this early stage," said Harris.
David Bridgman and Lara Bennett of PWC were appointed administrators and are currently working on a way to save the company by getting better returns for creditors, rather than placing the business into liquidation.
There are currently no plans as to whether the company will be sold as a going concern. However, another creditors' meeting in September will answer more questions around the business' future.