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Business liquidations have reached a decade-high with 2,500 companies folding last year, marking the highest annual figure since 2014 amidst challenging conditions for construction and retail sectors, New Zealand business news, business trends 2025, NZ construction industry, retail sector challenges.
The figure represents an increase of nearly 700 liquidations compared to 2023. Receiverships also climbed to their highest level since 2012, with 186 companies entering receivership, an increase of 84 from the previous year. New Zealand economic crisis, business liquidations statistics, rising receiverships NZ, financial distress in business.
Liquidation and receivership numbers have been trending upward since the pandemic. Economic impact of COVID-19, business recovery post-pandemic, NZ pandemic aftermath, business stability challenges.
Retail NZ chief executive Carolyn Young highlighted the severity of the situation facing retailers, noting that it has been the toughest period in decades for some. Carolyn Young, NZ retail struggles, retail industry challenges, business leadership in crisis.
“We’ve spoken to numerous retailers over the Christmas break, and many have said it’s been the toughest year they’ve ever experienced, even after working in retail for 20 to 30 years,” she said. Christmas retail sales NZ, retail industry feedback, retail sector resilience, NZ Christmas economy.
“Businesses don’t want to close or go into liquidation, so they are doing everything they can to stay relevant and open. Business survival strategies, retail business adaptation, avoiding business liquidation, staying afloat in tough times.
“We do know that the good times will come back. And they will return – it is a cycle – but it’s how you get there.” Business cycles, economic optimism, recovery strategies, business endurance.
Notable recent casualties include Baby City, which has seen several stores remain open into the new year after new management purchased the company’s stock. Business acquisitions, Baby City NZ, retail store closures, business continuity plans.
Meanwhile, hospitality businesses have been particularly affected, with the sector featuring prominently in last year’s liquidation data. Hospitality industry challenges, NZ hospitality sector, business impact on hospitality, industry-specific business struggles.
Hospitality NZ chief executive Steve Armitage said operators were banking on a busy summer, ahead of quieter winter months. Steve Armitage, seasonal business challenges, hospitality sector strategies, NZ summer tourism.
“They’ll be hoping they can drive enough revenue and foot traffic through the doors to keep things going.” Revenue generation strategies, business foot traffic, boosting sales, hospitality business survival.
The sector had also been hoping for more international visitors, with tourist numbers previously only at about 85% of pre-2019 figures, Armitage said. International tourism NZ, pre-2019 tourist statistics, impact of tourism decline, hospitality industry recovery.
Young said that growing consumer confidence this year depends on two key factors. Consumer confidence, economic factors, NZ job security, consumer spending trends.
“We really need to see job security and reduced expenditure for core items for consumers, and if we can get that, then we’ll be good.” Economic stability, job security, consumer spending, economic recovery strategies.
SOURCE: 1NEWS