Liquidation sale popular

01:16, Jun 29 2012

A liquidation sale and the threat of closing down has seen customers flock to the Kooky fashion shop in Nelson.

Kooky Ltd has been in liquidation since June 20 and a liquidator's first report, by Waterstone Insolvency's Damien Grant, says the company's director Suzanne Dunn attributed the failure to a downturn in the economy which "expended the cash flow of the business".

A liquidation sale, with clothing discounted by 50 per cent, started about two weeks ago at Kooky's 14 stores across the country including Nelson's Fashion Island store.

Two staff are employed at the Nelson store and staff member Judy Scoble said she had been rushed off her feet dealing with the influx of customers.

"People just love a bargain," she said.

Sales at the Nelson chain were previously $500 a day, but had soared to about $3000 a day since the liquidation sale, Mr Grant said.

The increase in consumers was fairly common in a liquidation sale and had also been happening in the other stores, Mr Grant said.

He was dealing with potential buyers and said he hoped to soon announce details of a sale.

The Nelson store employs two staff, and no-one from the nationwide chain had quit so far, he said.

ANZ National Bank holds a general security agreement over the business, and along with six other secured creditors is owed $1.88 million.

About $900,000 worth of stock was sitting on Kooky's shelves and as much as possible would be cleared in the half-price sale. It would continue until the business was sold or the stock was cleared.

He expected a sale would be announced next week.


The Nelson Mail