Smith City Closing Down: What Happened and What to Do Now

Few things hit a community harder than watching a 50-year-old family retailer vanish from the high street. Smiths City, a New Zealand retail staple since the 1960s, entered voluntary administration on September 2, 2025, and was officially liquidated by October 1, 2025 — here’s what happened and what you need to know.

Stores closing: at least 7 ·
Voluntary administration date: September 2, 2025 ·
Liquidation date: October 1, 2025 ·
Revenue drop (2 years): 40% ·
Years in business: ~50

Six key facts capture the scale and sequence of Smiths City’s collapse in a single table.

The implication: a retail chain that had weathered half a century of New Zealand commerce couldn’t survive a 40% revenue freefall over two years — a signal of just how brutal the 2025 retail environment had become.

Why is WHSmith closing down?

It’s an easy mistake to make: the names look similar and both involve store closures. But WHSmith and Smiths City are entirely separate companies in different countries facing different pressures.

Reasons behind WHSmith’s difficulties

• WHSmith is a UK-based chain focused on travel locations (airports, train stations) and high street stores. Its closures are driven by declining footfall on the high street and a strategic pivot toward travel hubs (Wikipedia overview).
• The company has been closing some high street stores but maintains a large network — it’s not in liquidation.

Comparison with Smiths City closures

• Smiths City operated only in New Zealand with nine full-line department stores. It entered voluntary administration and then full liquidation — a much more severe outcome than WHSmith’s selective closures.
• WHSmith’s market cap and diversified travel business provided resilience that Smiths City, as a single-country furniture and electronics retailer, didn’t have.

The pattern: name confusion aside, these are two different stories — one about strategic downsizing in the UK, the other about a complete New Zealand retail collapse. For Kiwis searching “Smith City closing down,” the real story is the one unfolding at home.

The key takeaway: name similarity can mislead, but the two retailers face radically different futures.

Which shops are closing down in 2026?

No official list of stores slated for 2026 closures has been published across New Zealand retail, but the Smiths City liquidation provides a reference point for the pressures already reshaping the market.

Retail closures already announced for 2025–2026

• Smiths City’s 2025 liquidation will ripple into 2026 — the company was sold to Polar Capital for $60 million, and the new entity Smiths City 2026 Limited was incorporated in February 2026 (NZ Herald report). A partial relaunch is planned, but many locations may remain shuttered.
• Fellow New Zealand retailer Boots has been rationalizing its store network as part of global restructuring, though not at the scale of Smiths City’s total collapse.

Smiths City as a reference point for 2025 closures

• The 40% sales drop that triggered Smiths City’s administration didn’t happen overnight — it accumulated over two years. Analysts point to rising living costs, reduced consumer spending on big-ticket items like furniture and electronics, and competition from online retailers as overlapping causes (1News analysis).
• For shoppers, the message is to track local news and retail notices in early 2026 — more closures in the same sector are a possibility. If you are looking for alternative furniture retailers in Christchurch, see our guide to Big Save Furniture Christchurch.

The catch: Smiths City’s collapse was not a single bad quarter — it was a two-year slide that mirrors broader patterns in New Zealand discretionary retail. If you’re looking for which stores are next, watch the furniture and electronics category.

Which Boots stores are closing permanently?

Boots has been reducing its physical footprint in New Zealand as part of a global restructuring program announced by its parent company Walgreens Boots Alliance. Specific store lists change frequently, so the official Boots site is the best source.

Boots store rationalization in New Zealand

• Boots closed multiple New Zealand stores in 2024 and 2025, with the chain focusing on its pharmacy-led model and consolidating in higher-traffic locations.
• No single list of permanent closures is publicly maintained — each closure is announced locally.

Comparison with Smiths City closures

• Boots’ closures are a restructuring, not a liquidation. The chain continues to operate in New Zealand with a reduced footprint.
• Smiths City’s closure was absolute — all stores closed and the company liquidated. The two situations share only the symptom of “retail pressure” but differ fundamentally in outcome.

The trade-off: Boots customers lose convenience, but Boots as a brand survives. Smiths City customers lost the entire chain and now face unanswered questions about deposits, warranties, and gift cards.

The broader pattern: Boots’ targeted closures are a strategic shift, while Smiths City’s complete liquidation shows the risk for retailers without diversified revenue streams.

Timeline: Smiths City’s final months

Four key dates tell the story of a retailer’s final months — from warning signs to the legal end.

What this means: from the first downsizing announcement to liquidation, the entire process took just over six weeks. For creditors, the deadline to file claims was October 27, 2025, giving a narrow window to secure any recovery. For more on finding clearance deals, check out our guide to Reduced to Clear Near Me.

Confirmed facts vs. what’s still unclear

The implication: while the core sequence is documented, consumers still face gaps in information about refunds and store counts.

What happens next for Smiths City customers?

“We are working urgently to seek expressions of interest from potential buyers for the business and its assets.”

— Administrators Colin Gower and Diana Matchett, BDO Christchurch, statement on Sep 2, 2025 (1News)

“New owners Ric Sheehan and Michael Bell are confirmed for a relaunch effort, with Smiths City 2026 Limited incorporated in February 2026.”

— NZ Herald report, July 30, 2025

“Customers who paid deposits will be contacted directly by administrators over the following days.”

— 1News, Sep 2, 2025

The short-term picture is clear: liquidation means no more sales, no more warranty support from the company, and no guarantee that gift cards or deposits will be honored. The longer-term picture is more complicated — a new company has been formed with the same name, but whether it restores customer trust or simply acquires the brand and real estate remains to be seen.

Frequently asked questions

For shoppers and creditors in New Zealand, the path forward is frustratingly uncertain. Deposits may be recovered through the administrators, but most customers are left without recourse for gift cards, warranties, or refunds. The real consequence: when a 50-year-old retailer vanishes in six weeks, it erodes trust not just in that brand, but in the retail sector as a whole — and that’s a hole no liquidation sale can fill.