Furniture retailer in trouble

One of Wellington's top-end retailers, Wade House, has gone into receivership.

Neither the receivers nor the owners would reveal the number of creditors or the amount owed.

The furniture business has about 40 New Zealand suppliers and as many foreign suppliers.

It is owned by Richard and Jan Brodie, who ran the business for 13 years, and Auckland accountant Malcolm Innes-Jones.

The company employs 12 people, some of whom have been with it for more than a decade.

ANZ National Bank and the shareholders hold debentures on the company.

Wade House is continuing to trade and a stock sale could take place as early as next week.

Receiver Eddie Jansen said with six potential buyers showing interest there was a reasonable chance the business would be bought.

The company had hit problems, he said, after its shift in November 2006 from Hutt Rd to larger premises in the Woolstore in Thorndon Quay.

The higher rent, a softening economy and the failure of expected sales growth to materialise were key factors behind the receivers being called in this week, he said.

Mr Brodie said a great deal had been invested in the store's refit, including employing a leading design team and using imported Italian marble.

The Brodies had invested heavily in the business since the move, Mr Jensen said.

"[They] threw everything they could at it, financially and personally, so they will suffer quite substantially."

- © Fairfax NZ News