Business owners in one of Auckland’s most colourful spots are feeling the pinch as some institutions are forced to close.
Karangahape Rd has long been a vibrant counterculture pit stop with a mix of shops, eateries and music venues. But in the last two days, two businesses in the area have announced they’re shutting down.
On Thursday, live music venue Neck of the Woods took to social media to announce it would be closing next week after 11 years.
"Like a lot of music venues, we’ve been struggling since Covid, and this year has just gotten harder. We see sold out shows and think a club is doing well, but we live or die by our bar sales. That’s fine when the economy is up, but unsustainable in the current climate and as people are drinking and spending less," the venue said.
"We’ve been fighting hard to stay open under ever increasing debt. We’ve tried everything but today we’ve had to face the hard truth that after 11 amazing years, we’ve come to the end of our journey. We’re closing our doors next week, making this weekend our last."
One attendee at one of Neck of the Woods' final gigs told 1News it was "difficult to process".
"This place is like an essential part of the community that brings new people together."
Around the corner, independent record shop Flying Out was also forced to fold.
Flying Out cited the Covid-19 pandemic, festival cancellations, roadworks, the City Rail Link (CRL) construction, and the economic downturn as an "unpleasant perfect storm" it could no longer weather.
"Flying Out has been a true labour of love, and we’re incredibly grateful to everyone who helped make it what it was," the team said on social media.
"Your love and loyalty have been truly appreciated. What happens next is still being figured out – we will be in touch over the coming weeks."
Another institution, Verona Café and Bar, also recently went into liquidation after 34 years.
"There’s a huge sadness on the road at the moment within the community," Crushes retail manager Aellerie Konia-Store said.
"It’s a huge loss for a lot of culture on the road with all of these closures."
It’s the latest in a string of closures around K’ Rd and mirrors the national trend, according to Centrix.
Hospitality liquidations are up 49% across the country in the year to May and retail closures are at 37%.
But there’s a glimmer of hope things may turn, with retail card spending up 1.7% from the previous month.
Green Dolphin Bookshop co-owner Roy Ward said he’s already seen a rise in foot traffic and people in the shop – even before the CRL was due to open in the coming months.
"I think this area is actually coming up but obviously, it’s not happening soon enough or at the right time or in the right way for everybody."
While construction for the CRL was once seen as a curse, it could now be a lifeline for some.
"I think it’s a lot of people waiting to see what that will do and it’s a shame that some businesses haven’t made it that far to see whether it helps them at all," Ward said.
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