The Warehouse will stay open in Kaikohe

Thursday, 5 April 2018

National retailer The Warehouse has u-turned on an announcement it would shut up shop in the Far North town of Kaikohe by the end of June.

Initially it was thought 33 staff members would lose their jobs. 

Negotiations with the landlord had been underway since July 2017, the retailer says, and it had been unable to secure a 'commercially acceptable situation' when the negotiations ended on Tuesday, 'we have no choice but to close the store at the end of June this year'.

The staff were notified of the closure at a meeting on Wednesday night.

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However, on Thursday morning, The Warehouse said the landlord asked to re-enter lease negotiations. 

'The Warehouse is now confident that its Kaikohe store will remain open, pending final contract confirmation.'

The Warehouse chief executive Pejman Okhovat said he was thrilled the firm would be able to keep the store open.

'We've always wanted to stay in Kaikohe, that's why we'd been working hard with the landlord to negotiate new leasing terms since July last year, and we're really pleased he's now decided to agree on a new lease.'

The 33 permanent team members (full and part time) will remain employed by The Warehouse.

Regional Development Minister Shane Jones said he had spoken to the landlord.

He had earlier described the news of the closure as a 'bleak day for Kaikohe'.

'I'm deeply disappointed The Warehouse board are endorsing such an awful decision,' Jones said.

'The Warehouse have created a powerful reputation as having one of the best social licenses in New Zealand - it's an obvious blow for Kaikohe and all I can do is highlight the hypocrisy and danger that I think this puts The Warehouse brand in.'

First Union National Coordinator for The Warehouse Kate Davis said she was hopeful there had not been a culture shift in the company.

'One worker was particularly delighted and relieved, he'd been with the company for 11 years and had just moved from Rotorua to Kaikohe. On his first day he was being told he was going to be made redundant. So yes, we are very pleased they are now looking at all their options.'

She said while it was a move in the right direction, the company should have done more in the first place before announcing an impending closure.

'The Warehouse has always said it's more than just a store, but instead an integral part of the community. We are hoping that they will be able to illustrate their commitment to the workers and residents in Kaikohe by finding an alternate location.'