Shoe chain faces more closures

Trading will continue at Shoe Connection, Snkr, Banks Shoes, and Plimmer Shoes shops this week while owner the Banks Group is in receivership, though more stores could be in line to close.

Since Banks Group was put in receivership on Friday at the request of its director, John Banks, the company has closed two of its 14 stores.

A Shoe Connection store in Newmarket, Auckland, and another in Auckland’s Northwest Shopping Centre have closed their doors, just a day after staff learned the news.

Banks Group employs approximately 170 staff and operates stores in Auckland, Wellington and Christchurch as well as an online business.

A Shoe Connection store within Hamilton shopping centre The Base also closed prior to the company’s move into receivership. Administrator Gina Mahara said the Hamilton store had stopped trading on May 14, though its lease ended on Sunday.

Receivers have not yet determined the extent of the company’s debt.

PWC receiver for Banks Group John Fisk said more details would emerge this week.

Receivers met management on Monday to work through a plan to continue to trade, Fisk said.

Discount sales that have been going on at stores are under review by management and PWC as well.

A worker at the Shoe Connection in Westfield, Riccarton, said no new sales have been announced since the notice of receivership.

Fisk said discussions on which businesses might close were ongoing.

‘‘There’s various parties we need to talk to and we’re hoping to complete those discussions later this week,’’ he said.

Shop staff have been told not to release any information about the receivership.

Banks had a reputation as one of New Zealand’s oldest footwear retailers.

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