AUCKLAND: New Zealand's luxury sector has suffered a double blow with owners of upmarket menswear chain Satori forced to sell the business and retailers in the Chancery shopping precinct facing an uncertain future.
It is understood Satori parent company Axiom International went into liquidation on December 19, owing creditors upwards of $2.2 million. Yesterday, liquidator Peter Chatfield told New Zealand Herald Satori had been placed on the market in a bid to claw back money to Axiom.
Satori operated six menswear stores in luxury precincts across New Zealand, selling European clothing, footwear and accessories imported by its parent company. Axiom was established in 1979 while Satori was set up in 1997.
The liquidator's report indicated Axiom's downfall was a result of a failed associate retail company in Australia, the deterioration of sales across the New Zealand and Australian markets and an inability to secure funding to meet payments on orders for the new year.
The company is believed to owe ANZ National Bank $1.15 million.
High-end shopping precinct Chancery, a $60 million development launched in 2000, is also struggling under tough economic times with several retailers forced to shut their doors.
The latest casualties include one of the embattled Satori stores, womenswear retailer Free Way and Brands of the World - which stocked European brands Versace, Escada, Prada and Christian Dior - along with Sole Footwear and handbag brand Mellencamp. Menswear store Cube also closed last year.