The Timaru Herald

Valleygirl suppliers cease trading

- CATHERINE HARRIS

The administra­tors of clothing chain Valleygirl and its sister brand Temt says two of its key suppliers have ceased trading.

Stewart Free and Andrew Spring of Australian-based Jirsch Sutherland were appointed administra­tors of Valleygirl New Zealand last Friday.

There are about 40 stores in total across the country. A Temt store in Lower Hutt, which seemed under-stocked last week, confirmed its doors were still open.

Free said the New Zealand operation had suffered from a downturn in trade and problems securing stock, leading to difficulti­es maintainin­g creditors’ payments, notably to landlords.

‘‘We are currently investigat­ing the best options for preserving the business operations, which include investigat­ing a potential sale of the business, and by virtue trying to ensure that employees are best looked after.’’

It is not clear whether staff have yet been paid outstandin­g wages.

Free and Spring are also overseeing the voluntary liquidatio­n of two Australian retail and supply companies, MHN Trading and Hanama Collection, which traded as Paper Scissors and Chicabooti, and which have ceased to trade. Temt stocked both labels.

One Valleygirl staff member, who asked not to be named, said last week that staff had raised concerns with management about emptying shelves. She said they were told it was due to problems with the Chinese distributo­r.

Court records show that Valleygirl NZ’s owner is Hyuk Sang Ma, otherwise known as Michael Ma. His uncle, Jim Marr, founded Valleygirl in Australia.

Michael Ma opened his first store in New Zealand in 2006 under the Valleygirl name and later renamed his Australian stores Paper Scissors and Chicabooti.

The Australian business is not believed to be involved in the New Zealand company’s troubles.

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