A luxury handbag and clothing retailer in Auckland has been forced into liquidation, citing the impact of Covid-19.
McGrathNicol has been appointed liquidators of Luxury Retail No.1, which has a Mulberry-branded shop in Auckland’s Westfield Newmarket mall.
The brand is reported to have been worn by the Princess of Wales, Kate Middleton, as well as Duchess of Sussex Meghan Markle.
The receivers’ appointment was made by Mulberry Company (Australia), a subsidiary of Mulberry Group, which was listed on the London Stock Exchange.
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The Australasian group had incurred trading losses for some time, which the directors attributed in part to Covid lockdowns and border closures affecting the luxury retail market, the liquidators’ report said.
The company and its parent were not part of the Mulberry group of companies but held the franchise to sell Mulberry goods in Australasia.
The appointment was made due to the Mulberry Group’s concerns over the continued viability of Luxury Retail, and comes after Mulberry Company (Australia) acquired the secured debt owed by Luxury Retail to a third party.
The company’s total liabilities were listed as $1.8 million and it had assets of more than $1m.
Customer orders and gift cards would be honoured in full, staff would continue to be employed and paid, and stores would remain open.
McGrathNicol partner and receiver Barry Kogan said the receivers were undertaking an urgent financial assessment of the business.
“We are working collaboratively with all stakeholders, including employees and the Mulberry Group, to secure the best possible outcome for everyone.
“Mulberry Group intends to support the receivership process, including through the provision of additional funding, so that consumers can continue to shop at Mulberry into the future.”
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