Major shopping chains closed due to Meridian quake risk

Dunedin's Kmart and H&J Smith department stores remain closed today following the revelation Meridian mall is earthquake-prone.

This is despite the mall's manager yesterday telling the Otago Daily Times there was no risk to staff and customers and saying the building would reopen today as  New Zealand moves into Alert Level 2.

A recent assessment by a structural engineer found the mall had an expected seismic performance of less than 34% of the new building standard.

Meridian Mall. Photo: ODT files

A sign on the door of Kmart said it would remain closed for "an additional two-week period whilst we work with Meridian Mall on seismic strengthening upgrades that are required to the mall".

H&J Smith chief executive John Green said the Dunedin store was set to open for "the beginning of the recovery" after the Covid-19 shutdown but company leaders had to make a late, dramatic call to stay shut for a little longer.

The business received a copy of a report from the mall last night and that information would be reviewed before any decision about reopening.

"We have a responsibility to evaluate the information we've now been given and understand it," Mr Green said.

Staff were informed last night and Mr Green said they would be looked after.

Fulfilling school wear orders remained a priority, he said.

Customers have been encouraged to continue using the company's website and phone calls have been diverted to Invercargill.

Staying shut was a letdown after expectations had built up and Mr Green regretted the inconvenience for customers, but he thought they would be understanding in the circumstances.

"People know we're a long-established company."

Mr Green said his business would endeavour to work positively with the mall.

"Our thoughts are with them as well."

H&J employs about 85 people connected with the Dunedin store and the overall group has 650 staff. 

In a customer services email Mr Green said the company had no doubt the building was safe for visitors but it had responsibilities as a company it could mot ignore.

"Our team as you will imagine are devastated as they were anxious to be back at work after the lockdown. They have been stood down and will be paid while we conduct this evaluation."

A notice at Kmart. Photo: Supplied

Oyster Property Group chief executive Mark Schiele said it was starting design and concept work to strengthen the building.

But he noted the building had a current building warrant of fitness, and stressed ‘‘the safety of staff and customers at Meridian Mall is of primary importance’’.

The building standard rating did not indicate any structural issues apart from the building’s performance in the event of an earthquake, he said.

Exactly what percentage of the standard the mall was rated at had not been determined yet.

While Dunedin was categorised under the Building Act 2004 as being in a low seismic risk zone, the decision had been made to take a proactive approach and begin design and concept work.

‘‘There is a considerable period available before any works would be required to be completed.’’

The mall was 23 years old and its assessment was not uncommon for buildings of its age, Mr Schiele said.

All of the mall’s 50 tenants had been contacted to advise them of the assessment.

Dunedin City Council building services manager Neil McLeod said while a building might be earthquake-prone, that did not mean it was dangerous.

Because Dunedin was in a low seismic risk zone, the Building Act provided a 15-year period for the council to identify potentially earthquake-prone buildings.

daisy.hudson@odt.co.nz