The Max chain of clothing stores are planning to shut the doors of 17 shops after experiencing "considerable losses" during New Zealand's Covid-19 lockdown.
According to BusinessDesk , the women's clothing chain, which is owned by Chris Grieve, Gary Hitchcock and James Whiting, hadn't paid rent since the end of March and saw a drop in revenue despite the Government's wage subsidy scheme, which saw the company receive $1.7 million for its nearly 284 staff.
BusinessDesk said the brand was restructuring and seeking a creditor's compromise so it can keep trading.
However, separate negotiations with landlords failed and offers varied significantly.
In a statement to BusinessDesk, Max Fashions said, "most only dealt with the immediate lockdown period and not with the potential economic consequences of the unemployment and GDP impact to come. Unfortunately, some landlords were unwilling to provide any concessions at all."
Max has more than 40 outlets throughout the country, but they wouldn't say how many of its staff will lose their jobs.
“If the landlords approve the proposed formal creditor’s compromise, we are confident that we can continue on the exciting journey of rebuilding this iconic brand on the other side of this very difficult but necessary restructure,” managing director Jamie Whiting said.
“We forecast trading to be impacted for some time to come, as a result of the wider economic crisis, reduced consumer confidence and spending, lower foot traffic and disruption of supply chains.”
The company's owners also own menswear brand Barkers, but they wouldn't comment on the company's performance. Ministry of Social Development figures show they received $1.5 million for 263 staff.
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