Up to 70 staff working for Shanton stores across the country will lose their jobs as the company begins a restructuring process.
As well as this, 17 Shanton stores are set to close their doors.
The announcement comes as the company begins a restructuring process amid voluntary administration.
Administrator Bryan Williams of BWA Insolvency, said some staff would be relocated to other stores, but he was unsure how many.
Mr Williams was appointed administrator when Shanton Fashions Ltd went into voluntary administration on January 11, 2015.
The company owed $7.79 million to 206 creditors, including the IRD and outstanding holiday pay owed to Shanton employees.
"It is with a great deal of regret that the store footprint needs to reduce, but this is the first step towards the rehabilitation of a brand that has been an icon in the New Zealand marketplace for more than 30 years.
"As with any company restructure, it is a very difficult decision, but it was necessary to close the stores."
There are 37 stores nationwide and those due to close are Eastgate, Northlands, Whakatane, Masterton, The Base, Palmerston North, Feilding, Thames, Gisborne, Napier, Nelson, Westgate, Fraser Cove, Sylvia Park, Botany, Manukau Supa and Albany.
Mr Williams notified managers and staff on Tuesday.
He assured all affected staff that all holiday pay would be paid on their final day of employment.
"Many of the staff are very sad to lose the Shanton connection and some have been employees for a very long time. They have been loyal and committed throughout this process and many are keen to be part of the new era for the 'Shanton lady'."
Meanwhile, the sale of the business continues, and will be concluded next Tuesday, March 3.
Five possible contenders remain and negotiations are currently taking place.
NZME.
