Adventure apparel and outdoor equipment retailer Kathmandu has closed all Christchurch-based stores today, following yesterday's earthquake aftershocks.
Although the retailer said that both its Christchurch office and New Zealand distribution centre have power and communications, it has not detailed how long the closure will last. Kathmandu staff are currently tidying up minor damage to the sites, pending engineer inspections.
According to a statement released today on the Australian Securities Exchange, Kathmandu will provide a further update on the impact of the latest aftershocks will be provided to the market when the premises have re-opened.
The news comes after a large earthquake aftershock hit Christchurch yesterday with a 5.5 quake (on the Richter scale) at 1pm, followed by another measuring 6.0 at 2.20pm. Aftershocks also continued through the city overnight including a 4.7 magnitude jolt which struck at 2.48am, 10km southeast of Christchurch.
As reported in Ragtrader.com.au, Kathmandu was forced to close three of its Christchurch-based stores in February when the initial earthquake hit the city. The disaster, which measured 6.3 on the Richter scale, also caused damage to its Christchurch-based head office and New Zealand distribution centre in particular.
Kathmandu's largest store, Tower Junction, was the first to re-open, but the retailer's other two Christchurch -based stores in Riccarton and central city (Cashel Street) suffered extensive earthquake damage.
Just last month, Kathmandu also confirmed construction of a new national distribution centre in Christchurch to support the brand's expansion strategy.
The new centre, based at Portlink Industrial Park in Woolston, will act as a 5000sqm warehouse superseding the company's existing distribution facility. Kathmandu's current national distribution centre has been operating since 2000, when the company had only nine stores, but it has now reached its full capacity and some stock has had to be stored offsite.
The Portlink site, to be operational by July 2012, will supply the company's existing 37 New Zealand stores and meet the demands of the company's future growth, according to chief executive Peter Halkett.
Halkett also said the decision to build the warehouse in Christchurch despite the recent earthquake was based on the Kathmandu boards belief in the future of the beleaguered city, and its commitment to the company's heritage in Christchurch where it has been trading over 20 years.
"As a major player in outdoor gear for travel and adventure in Australasia, Kathmandu currently has its support offices and national distribution centres in Christchurch and Melbourne. But with more than 100 stores throughout Australia and New Zealand, the company had been considering its future requirements,” he said.
“After examining a number of options, the board has decided to build a 5000sqm facility at Woolston in Christchurch, near our head office. We did consider the option of an alternative warehousing facility in Auckland, but the board decided that Christchurch was a superior proposition.”
UPDATE - June 15: Kathmandu has re-opened its Christchurch office and New Zealand distribution centre today, and all Christchurch-based stores have also resumed trading.