Significant job losses loom with H&J Smith closure

“We understand this is difficult news and are committed to supporting them throughout this entire process."

The H&J Smith store in Invercargill currently employs 220 people.

H&J Smith staff were delivered the shock news on Wednesday that their employer plans to close its department store businesses.

It includes the 12,000 sqm H&J Smith flagship store in the heart of Invercargill CBD which currently employs 220 people. It’s operated at the current location for the past 100 years.

“We understand this is difficult news and are committed to supporting them throughout this entire process,” a H&J Smith Group statement says.

All employees have contractual provisions in their employment agreements that provide for a paid work notice period of four weeks and redundancy compensation. This is based on a standard formula relative to their length of service, or, in some cases, is a fixed payment.

For those employees who have not yet met the qualifying period for this entitlement, it is proposed to extend the redundancy compensation programme to them as well, with no employee receiving less than four weeks of ordinary pay in redundancy compensation.

"We will also be investigating, should the proposal go forward, if some of the affected staff members can potentially be redeployed throughout the wider H&J Smith Group.”

The H&J Smith Group’s Mitre10 MEGA Invercargill & Mitre10 MEGA Queenstown businesses, as well as Laser Electrical, are unaffected by the proposal and will operate as usual.

It is proposed to discontinue the department store online sales and Laybys on July 1 with the last day for trading planned for Saturday, November 18.

This proposal is out for consultation for four weeks. They will not confirm the outcome before Friday, June 23.

“We have no way of knowing the outcome of the consultation process. This can only be determined by following the process, sharing the proposal with staff, receiving, and reviewing submissions and feedback. It is only then a decision can be considered and made.

"For instance, we anticipate there may be interest in specific parts of the business, and it is our hope that some of our team may identify an opportunity to go into business. We would do what we can to support this and welcome the opportunity to help.”

So, what will happen to the likes of Gun City, School Uniforms, and Paper Plus which operate within the department store?

“We believed the best course of action was to speak to our staff about the proposed changes before speaking to third parties.

“We are sure there is interest in some aspects of our business to continue apart from the larger Department Store, like Gun City and Paper Plus. We will be having conversations with interested parties over the next weeks and months.

“In the case of school uniforms, we feel we have a responsibility to ensure continuity of services. We will be having conversations with interested parties over the next weeks and months.”

What about the H&J Smith carpark?

“We anticipate the carpark will be available per usual. However, as the carpark is not owned by the H&J Smith Group, we are unable to definitively say there will be no changes to the arrangement until we have concluded the consultation with our staff and made any decisions.

“Discussions can then take place with the owners of the carpark at that point. Should changes arise, we will speak to the appropriate stakeholders.”