A report prepared by liquidator Craig Sanson of PriceWaterhouseCoopers noted that New Zealand’s level-four lockdown – which was in place from 25 March to 27 April and prohibited trading of all non-essential businesses – had “diminished revenues” for the business, while “significant” fixed costs remained.
Confirming the company’s demise to Jeweller, Scott Patchett, who was a director of Daniel Wellington (New Zealand) and is general manager of Daniel Wellington (Australia), said, “We have filed for liquidation for our New Zealand subsidiary, and we are currently in the liquidation process. The COVID-19 pandemic has caused unprecedented challenges to many retail businesses globally, including Daniel Wellington.”
The two Daniel Wellington flagship stores, located on Queen Street and Newmarket in Auckland, were closed on 28 May with a loss of 12 jobs. The Swedish brand is also stocked in a number of retailers, including chains Walker & Hall and Silvermoon.
When asked whether retailers had been informed of the liquidation, and about their options for remaining stock and repairs, Patchett said, “During this process we have, and will continue to be in communication with all our wholesale partners.”
The liquidators’ report indicated that Daniel Wellington (New Zealand) had debts of at least $872,824.93 – of which $855,0467 was owed to unsecured creditors. A further $17,357.93 was owed to employees, though all wages and annual leave entitlements have been paid. The receivables were calculated to be $137,000.
Patchett could not provide a definitive answer about the Australian operation, when questioned about the future of the company’s local presence and distribution: “We would like to stress that Australia and New Zealand are completely separate entities.?Out of respect for everyone involved, we decline to comment any further at this stage,” he said.
Daniel Wellington was founded in Sweden in 2011 and entered the Australian market two years later, distributed by West End Collection. The relationship with West End Collection ended in 2018, the same year that Daniel Wellington subsidiaries in Australia, New Zealand and South Africa were established.
Business data firm Dun & Bradstreet estimates Daniel Wellington’s annual revenue at $US226.89 million ($AU328.33 million); it is known for its early use of social media-influencer marketing, with celebrities including Kendall and Kylie Jenner paid to promote the brand online.
In 2017, the business was named as the “fastest growing private company in Europe”, according to the Inc. 5000 Index, which tracks the percentage increase in revenue over three years.
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