Paula Ryan clothing manufacturer, outlet store in liquidation owing $1m-plus
Benjamin MacMillan of Auckland is the sole director and shareholder of Paula Apparel 2020, a business that has operated for four years. MacMillan, who used to be general manager of Paula Ryan, told the liquidators the insolvency was due to difficult trading conditions.
Employees’ roles were terminated as soon as the liquidators were appointed. Staff are owed wages and holiday pay of $27,000.
How much Inland Revenue is owed is yet to be determined.
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The business sold clothing from a shop in the NorthWest shopping centre at Westgate in Auckland. That mall is owned by NZX-listed landlord Stride.
The clothing business had an outlet store at the NorthWest mall.
Secured parties include ANZ, Paula Apparel, Flexicommercial, Finance Now, UDC Finance and Bizcap New Zealand.
Subject to further verification, there will be no funds available for unsecured creditors, the initial report said.
Assets listed in a statement of company affairs include $279,000 owed by debtors to Paula Apparel 2020.
Various apparel businesses along with clothing companies are named in a list of creditors, which also includes Christchurch business J Ballantyne.
Colour Evolution, Castle Parcels, Apparel Pressers and Apparel Attachments, Frost Textiles, GM Tex, Hart Textiles, Ecostar, Direct Sewing Machines and Supplies, iPayroll, Italian Import Company, J Ballantyne, JJ’s Waste & Recycling and Kiwi Sewing Manufacturers 2018 appear on the list of creditors.
Parisian Neckwear, NZ Post, NZ Couriers, Rentokil, 62 Management, Mida tessuti S.r.L, Spark, Spectrum Accounting, Textile Republic, Toll Networks, Unique Model Management, Wall Fabrics, Wonderful Fashion, Woolworths New Zealand and staff members are also named.
Online Transition
Last week, Paula Ryan told customers via Facebook the Paula Ryan brand is now “transitioning to a vertical-only online business model, focusing exclusively on our Essentials collection”.
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“After 25 years of wholesaling to independent retailers, we are ending our wholesale operations to better adapt to the changing market conditions. This decision has been influenced by the upcoming proposed closure of a key retail partner and the broader economic challenges affecting the seasonal fashion retail sector,” she said.
“This strategic shift will position us for future growth and sustainability.
“I extend my heartfelt gratitude to our business partners, retailers, and, most importantly, to you, our loyal customers, for your unwavering support over the years.”
The business would continue to sell because demand for Paula Ryan Essentials remains strong, “and by concentrating on these core pieces, we can serve you better, free from the pressures of seasonal fashion collections. Our Essentials collection offers timeless style and versatility for women of all ages and body shapes”, Ryan said.
“Our business began over 25 years ago, in 1998, with a small winter collection of New Zealand Merino wool tops. From the humble beginnings of five merino tops, we expanded into trans-seasonal fabrics from Italy and later developed large seasonal fashion collections, which were available in over 100 independent retail stores in New Zealand and Australia,” Ryan said.
Paul Ryan’s daughter Bridget Hope told the Herald the online business will continue as a direct operation to consumers under the Paula Ryan brand.
“Unfortunately, there will be no more wholesale supply of Paul Ryan clothing to retailers in New Zealand and Australia. Paula Ryan will only be available through its online store.”
She also mentioned the looming closure of Auckland department store Smith & Caughey’s as a factor influencing the decision.
“Smith and Caughey’s was one of the largest accounts for the wholesale licensee and the proposed closure has had impact among other things.”
Hope said the business was looking to continue manufacturing in New Zealand.
“We are going to bring the manufacturing back in-house and are currently in talks with New Zealand factories to supply.”
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
