Smiths liquidation: ‘I feel so sorry for the staff’

Monday, 8 September 2025

Sam Reid checks out the new couch bought by her boss Marj Baker of Winton from the Smiths Invercargill liquidation sale, on Monday.

Having loaded a new couch onto her trailer after purchasing it from the Smiths store liquidation sale in Invercargill, Marj Baker’s thoughts were with the store’s workers.

“I feel so sorry for the staff,” the Winton woman said.

Smiths City was put into voluntary administration last week, with all nine stores across the country closing, as was its website.

Eight of the nine stores, including Invercargill, reopened temporarily for a liquidation sale at the weekend, with 21,000 items to be sold nationwide.

As of Monday morning, lots of stock had been sold from the massive Invercargill store, which remained open, with items still remaining including couches and air fryers.

Baker, who had been shopping at Smiths in Invercargill for 30 years, said the shelves were “quite empty” on Sunday afternoon, and even emptier when she picked up her purchase on Monday.

“The stock went out very fast.”

If the store was not reopened it would be a big loss for the city as it was “good to have competition”, and she felt for the people working there.

“And it’s going to be another empty building when we have got the [former] Farmers building across the road empty as well.”

Southland Business Chamber chief executive Sheree Carey said her thoughts were with the Smiths staff.

Retail was facing a changing landscape nationally and globally, with the rise of online shopping, increased operating costs, and ongoing economic pressures making it difficult for even long-standing chains to remain viable.

Another large vacant building in the city would impact on local vibrancy and confidence, she said.

“This highlights the need to reimagine and diversify our retail sector, ensuring our city centres remain attractive, competitive, and adaptable to changing consumer behaviour.”

The Smiths City chain was founded in 1918, and had faced mounting financial pressures due to declining sales and a tough economic environment, said the administrators BDO in a statement last week.

“The voluntary administration process aims to achieve the best outcome for all stakeholders,” the administrators said.

The decision to put Smiths City into voluntary administration came as the home appliance and furniture retail sector was struggling, said Retail NZ chief executive, Carolyn Young last week.

“Ultimately, retailers are struggling. It doesn’t matter if you are a corner store, on a high street, or a mall, or a large national chain. It’s really difficult to keep afloat.”