Iconic shoe company goes bust after massive re-branding and online launch miserably fails
- New Zealand footwear brand, Ziera, has voluntarily handed over administration
- 73-year-old company, formerly Kumfs, now unprofitable amid economic strain
- Company says economic changes have drastically affected revenue
An iconic 73-year-old shoe company has folded after a massive re-branding and online launch failed to flourish.
New Zealand shoe brand Ziera announced on Tuesday it had fallen into voluntarily administration as they struggle to meet market demands.
Known as Kumfs until 2010, the company says economic changes have drastically affected revenue.
New Zealand shoe brand Ziera (pictured) announced on Tuesday they have voluntarily handed administration to insolvency experts McGrathNicol as they struggle to meet market demands
Factors include weak local currency, rising rent and staffing costs amid decreasing in-store sales, and additional tariffs courtesy of the US-China trade war.
The new administrators, insolvency experts McGrathNicol, acknowledged in a media release the revamp was ineffective as the market situation becomes increasingly challenging.
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'The business rebranded from Kumfs to Ziera to appeal to a broader customer base, but the message about Ziera's [comfort] technology did not cut through,' administrator Conor McElhinney said.
'In our assessment, the technology has real value and we hope to find another footwear retailer to take on the Ziera mantle and continue to supply its loyal market, while bringing the comfortable fashion message to all women.'
Although the online store- which launched in 2016- has grown over 50% per annum in Australia and New Zealand, the women's footwear brand remains unprofitable
Although the online store - which launched in 2016 - has grown over 50 per cent per annum in Australia and New Zealand, the women's footwear brand remains unprofitable.
In Australia, 110 staff - including part-time personnel - work across 23 stores, with 140 employees throughout the 22 stores in New Zealand.
Founded in 1946 by podiatrists David Robertson and Mervyn Adams, Ziera footwear has been sold world wide - including the US, Canada, and Singapore.
![Administrator Conor McElhinney said: 'the business rebranded from Kumfs to Ziera to appeal to a broader customer base, but the message about Ziera's [comfort] technology did not cut through,'](https://i.dailymail.co.uk/1s/2019/09/24/11/18863414-7497975-image-a-10_1569319868668.jpg)
Administrator Conor McElhinney said: 'the business rebranded from Kumfs to Ziera to appeal to a broader customer base, but the message about Ziera's [comfort] technology did not cut through,'
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