Up to 70 staff will lose their jobs and 17 stores will shutter as the latest retail collapse hits.
Ragtrader magazine has been following the plight of Shanton Fashions, a New Zealand based retailer which appointed administrators in January, since last month.
Download the March iPad edition for more on the administration of Shanton Fashions and Josh Goot.
The company has now commenced a restructuring process under administrator Bryan Williams of BWA Insolvency.
Of the 37 stores in New Zealand, those due to close are Eastgate, Northlands, Whakatane, Masterton, The Base, Palmerston North, Feilding, Thames, Gisborne, Napier, Nelson, Westgate, Fraser Cove, Sylvia Park, Botany, Manukau Supa and Albany.
Williams said some store staff will be relocated to other stores.
"It is with a great deal of regret that the store footprint needs to reduce, but this is the first step towards the rehabilitation of a brand that has been an icon in the New Zealand marketplace for more than 30 years.
"As with any company restructure, it is a very difficult decision, but it was necessary to close the stores. Many stores are the heritage of the Shanton business before it went into receivership in 2012.
"The stores are too big for the type of commercial activity Shanton should be doing and therefore uneconomic."
William was appointed administrator when Shanton Fashions Ltd went into voluntary administration on January 11, 2015.
The company owes $7.79 million to 206 creditors, including the IRD and outstanding holiday pay owed to Shanton employees.
As of January 11, there are 155 Shanton employees nationwide.
All affected staff are full-time equivalents.
Williams formally notified managers and staff on February 24, but notice will run from March 2.
He has assured all affected staff that all employee entitlements (holiday pay) will be paid on the final day of employment.
For two-week-notice staff this will be March 15 and four-week-notice staff will finish on March 29.
Meanwhile, the sale of the business continues and will be concluded next Tuesday, March 3.
Five possible contenders remain and negotiations are currently taking place.