A Christchurch-based footwear retailer, Street Legal Shoes Limited, has been placed into voluntary liquidation due to struggling in a crowded shoe market, resulting in debts to creditors exceeding $600,000.
The company has operated four retail stores across Christchurch, Rangiora, and Dunedin, along with an online site, since starting the business in 2004.
Ashton Wheelans’ accountant, Andrew Oorschot, was appointed as the liquidator of Street Legal and released his initial liquidation report on October 29, 2025.
Employees were owed over $19,000 in unpaid wages and holiday pay, while the extent of outstanding debts to unsecured creditors remained undetermined.
The Inland Revenue is owed approximately $101,000, while the 15 identified secured creditors include ANZ Bank, which holds a security agreement valued at $395,000, along with other businesses owed around $90,000.
The total debt owed to over 55 creditors is still being determined. The remaining inventory has an estimated book value of around $218,000.
The value of other sellable assets is still under evaluation.
Oorschot mentioned that there would likely be funds available to pay preferential creditors such as employees, but the exact values of the company’s assets and liabilities were still to be confirmed.
He said repayment to unsecured creditors was unlikely.
Oorschot said the privately owned footwear business had faced a progressively difficult operating environment over the last two years, despite many years of providing quality footwear at competitive prices.
“While multiple factors are at play, the challenging environment is primarily a result of changing consumer-purchasing behaviour, increased competition from non-traditional and global entrants, and most significantly the poor economic conditions resulting in the current cost of living crisis.”
He noted that the shareholders and management had made efforts, including injecting additional shareholder capital, to streamline the business and maintain viable operations.
“In spite of this, the economic turnaround that was expected has not materialised, and as part of ongoing financial advice, the shareholders have made the decision to put the company into voluntary liquidation to mitigate any further potential loss to creditors.”