Liquidator: Jeweller owes $6m

The first liquidator’s report on jeweller Silvermoon shows the firm owes more than $6 million to creditors, Inland Revenue and staff in wages.

Silvermoon Jewellers, trading as Keeper’s Quarter & Co Limited, went into voluntary liquidation last week citing an “arduous battle” against economic conditions.

Bryan Williams of BWA Insolvency was appointed liquidator of Keeper’s Quarter & Co Limited by special resolution of shareholder Peter Shang Ming Lee, the sole director.

Preferential creditors are owed more than $1.3m, including staff entitlements totalling $126,976.17, according to the liquidator’s report.

IRD is owed $893,713.62 (PAYE) and $379,034.52 (GST).

Other creditors include “suppliers and service providers”, who are owed $2.4m, and shareholder advances of just over $2.4m.

Creditors include ASB, Meridian Energy, Swarovski International (NZ), One New Zealand Group, MYOB and Fairfax Media.

Its assets total $3.2m, including inventory of $2.048m and fixed assets (shop fitout) of $1.1m, leaving a provisional deficiency of $2,989,947.78.

In a letter to customers on the Silvermoon website last week, the company — which has 10 stores nationwide — said it would honour gift vouchers and close.

It encouraged holders of vouchers to spend them as soon as possible and said it had made special arrangements with the liquidator so they could be redeemed. In a special condition, the customer had to match the value of the gift card — for a $20 voucher, $20 had to be spent.

The company is having a final farewell sale with 20 per cent off everything on its website.

“After considerable reflection and exhaustive exploration of all possible avenues to sustain our operations, it has become clear that Silvermoon Jewellers must embark on a closing journey, leading to liquidation,” the message on its website said.

The store was founded by Simon Thwaites as a “kiosk-style” shop in malls in 2000, stocking jewellery from Bali, Thailand and Mexico. He sold the store to Lee in 2017.