The tight retail market for small computer stores has resulted in more closures.
Two computer software retail outlets in Auckland have closed their doors voluntarily after being unable to continue trading because of high rents and low turnover.
Creative Computing, trading as Software Warehouse Pakuranga, and Mainly Software NZ, trading as Software Warehouse Manukau City, have sent letters to creditors saying they have closed.
The letter, signed by director Mina Patel, says the companies planned to cease trading from September 2.
The letter goes on to say: “It is expected that the company will not be able to repay you in full. The directors and shareholders have resolved to put forward a scheme of arrangement rather than appoint a liquidator.
“This decision has been made to try to reduce the cost of winding down the business and thereby maximise the payment to you. There are no secured creditors, so a receiver will not be appointed .... You are not obliged to accept these arrangements; however, you must understand that if anybody persists in winding up the company, the resulting payment to you all is likely to be very much less than will occur by the method we are proposing.”
The letter goes on to say that North Shore-based software distributor Software Warehouse NZ is not closing, is a separate legal entity and will continue to trade as usual.
Staff at Software Warehouse NZ say Creative Computing and Mainly Software were using the names Software Warehouse Paku-ranga and Software Warehouse Manukau City as trading names only for advertising purposes and, other than that, have no relationship to Software Warehouse NZ in Takapuna.
“Their closing has no effect on us.”
However, part of the plan by the directors and shareholders of Mainly Software and Creative Computing is to transfer stock the companies have paid for to the Takapuna shop operated by Software Warehouse NZ, where it can be sold and the proceeds to go towards repaying creditors.
“It is a shame the two companies had to close, as they did spread our name in and around Auckland,” says a Software Warehouse NZ staff member. He denied a rumour that Software Warehouse NZ was also about to close.
“We have no intention of closing. We are trading as profitably as normal. There are bound to be a lot of rumours but all we can say is they are not true as far as we know.”
The demise of the stores, which sold games and business software, comes after the collapse of other small computer businesses — most recently Fabrini Technology, which closed leaving warranties and repairs outstanding.
At the beginning of this year Wellington computer retailer AB Computers went into liquidation, with its corporate business and support operation being sold off.
Another Wellington PC market casualty was Metro Computers. And Auckland-based computer retailer Cost Club ran into financial and legal troubles earlier this year.