Hugh Wrights “Receivership” Sale misleading

Commission sends warning to clothing retailer: Hugh Wrights “Receivership” Sale misleading

The Commerce Commission has sent a warning to clothing retailer HW Munns Limited following advertising of a Hugh Wrights Receivership Sale.

The advertising, which stated “Hugh Wrights Receivership Sale – The Receiver has released more stock, Willis Street Store Only” appeared in Wellington’s Dominion Post newspaper earlier this month. In addition HW Munns has advertised the receivership sale on radio.

A Commission investigation revealed that HW Munns had purchased all of Hugh Wright’s clothing stock from the receiver prior to offering it for sale. It also purchased stock from Hugh Wright’s suppliers, which had not arrived at the stores before the company was put into receivership, and supplemented this with stock from HW Munns’ Christchurch store. The stock now being offered for sale is no longer part of the receivership process and to refer to it as such is misleading.

Director of Fair Trading Deborah Battell said the Commission has sent a warning letter to HW Munns advising the company to immediately stop advertising its sale as a ‘receivership sale’ or risk breaching the Fair Trading Act.

“Consumers are entitled to know that, strictly speaking, this is not a receivership sale. HW Munns bought the stock and the proceeds of the sale are not going to the receiver,” she said.

Background

HW Munns was given the right to use the name Hugh Wright’s on three of its stores – in Wellington, Auckland and Christchurch – and to lease the Hugh Wright’s premises until after Christmas, having purchased all of Hugh Wright’s stock from the receiver.

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