Job losses at Invercargill's closing Smiths City clearance centre

Thursday, 28 May 2020

The imminent closure of the Smiths City clearance centre in Invercargill has resulted in four job losses but the retailer has confirmed its main Smiths City store in the city will remain open.

The Smiths City Group was placed into receivership last week to help expedite the sale of most of the assets of the business to Colin Neal, founder of refrigerated logistics company Big Chill.

The sale has seen Neal take over 22 of Smiths City's 29 stores, providing ongoing employment for about 350 of 465 Smiths City staff.

But receiver Colin Gower of BDO Christchurch said last week that Smiths City's seven remaining stores in Mount Wellington, Porirua, Lower Hutt, Kapiti and Whangarei, its Invercargill clearance centre and Christchurch outlet store, would close.

* Smiths City rescue leaves 115 staff in the cold

* Smiths City to be sold to investment company of Big Chill founder Colin Neal

Neal has set up a new business, Smiths City (2020), to take over the chain.

A Smiths City [2020] spokesman said this week that its main Invercargill store in Leven St would remain open, while Gower confirmed the Smiths City clearance centre store in Tay Street would close in coming weeks.

It is understood four people work at the clearance centre and have been made redundant.

The clearance centre sells furniture and appliances with scratches and dints and end of line products.

Gower said some of the clearance centre staff had been rehired on temporary contracts to assist with the closure of the store in coming weeks.

The Smiths City [2020] spokesman said the new owner was making a number of changes across the business with a focus on delivering products and services its Southland customers wanted.

''It is working closely and in collaboration with its team at the Invercargill [Leven St] store to achieve that goal, but we do not want to say more than this. Smiths City is now a private company.''