Smiths City Faces Uncertain Future

Smiths City, a long-standing name in New Zealand’s retail sector, has gone into voluntary administration following mounting financial challenges.

All nine of the company’s stores, along with its online platform, were shut on Tuesday morning while administrators from BDO Christchurch – Colin Gower and Diana Matchett – begin reviewing the business. The temporary closure is intended to give space for an urgent assessment of the retailer’s financial position and to determine whether trading can resume later in the week.

Despite earlier efforts to cut costs through store closures and downsizing, sales continued to decline. Company director Colin Neal said the environment had become increasingly difficult for large-format retailers, and continuing to trade was no longer viable.

Smiths City was first established in Christchurch in 1918, originally selling farm supplies and general goods. Over the decades, the company shifted its focus toward furniture, home appliances, and consumer electronics, becoming a familiar presence across the South Island.

The business has faced turbulence in recent years. During the COVID-19 pandemic, it entered receivership before being acquired by Polar Capital for around $60 million in 2020. At that point, the retail and finance arms of the business were separated, with Neal involved in the finance operation. While the relaunch initially sparked optimism, a series of store closures earlier this year signalled renewed trouble.

Administrators have confirmed that people who placed deposits or have outstanding orders will be contacted directly in the coming days. For now, customers will need to wait until the review is complete to see if and when stores reopen.

The administration process will determine whether Smiths City can be restructured, sold, or if more drastic measures are required. In the meantime, uncertainty remains for staff, customers, and suppliers tied to the historic retailer.