PM praises Smiths City, as the Christchurch retail institution goes into administration
Tuesday, 2 September 2025
All Smiths City stores have closed on Tuesday and the company has been placed into voluntary administration.
The Christchurch-based homewares retailer called in BDO Christchurch as administrator earlier on Tuesday.
Commenting on the move, Prime Minister Christopher Luxon called it “a real shame”, and acknowledged the difficult trading environment for “bricks and mortar” retailers.
It was “sad news” amid tough times for retailers globally, he said.
“It's a great Christchurch company that's existed for a long period of time. It's been a difficult time for them in particular.
“And so, you know, my thoughts are really with those workers, because that's been a Kiwi company from Christchurch, it's had its challenges over a number of decades, to be honest.”
The home appliances and furniture retailer was founded in Christchurch in 1918, and had faced increasing financial pressures in recent years. It has closed some stores and implemented further downsizing measures, it said in a statement.
“Declining sales meant that the director of the company took the decision that trading could no longer continue,” it said.
“The voluntary administration process aims to achieve the best outcome for all stakeholders. This may include selling the business and assets to interested parties. The administrators are calling for urgent expressions of interest.”
Voluntary administration allows a business to continue while administrators assess the company’s financial position and provide recommendations for the future of the company to creditors.
As of 8.30am on Tuesday, all nine Smiths City stores and the online shop were temporarily closed for business so the administrators could undertake an urgent assessment of the company’s financial position and confirm next steps.
The aim is to reopen stores later this week.
“The administrators appreciate this is an unsettling time for everyone at the company, and they met with staff this morning to explain the process going forward,” the statement said.
Customers who have paid deposits for purchases will be contacted directly by the administrators over the coming days.
The company’s website was offline on Tuesday morning.
The administration follows several years of difficulties for the business in the face of economic conditions and competition from other homewares retailers including Harvey Norman.
Smiths City was placed into receivership by its board during the Covid pandemic in May 2020, and later the same month it was sold to Polar Capital Ltd’s owner, Colin Neal.
The business was then downsized, closing some of its 29 stores including those in Auckland, and laying off 115 workers.
Several more stores have been closed this year, the latest in the Christchurch suburb of Hornby, which shut up shop last week, as the company reporting a 40% drop-off in business in two years.
The original central Christchurch premises of the business, originally known as City Market and then Smiths City Market, closed on Colombo St last year.
The company has a flagship outlet at the Colombo Mall in Sydenham, another at Northwood, and others in the South Island, plus an Auckland outlet store.