One of Tauranga's oldest businesses, Guinness Appliances, is closing, says its general manager Errol Hotham.

The Te Puke branch will be closed by the end of April with the Tauranga branch beginning its close at the start of May with trade ending at the end of that month.

Errol Hotham says business is tough in the appliance market - forcing the closure of one of Tauranga's oldest businesses.

There are 15 staff losing jobs from the business of full modern name: 100% Guinness Appliances.

'Three of us have been with the company 20 years plus,” says Errol.

'It's been a really emotional and difficult process we have had to go through, from making the decision at board level, through to telling staff and the big customers.

'That's why it is really important to me to make sure we get the right message out there to people.

'It's an orderly closure. It's been really tough. It's a decision that's not going to be taken lightly.

'After 103 years, the company is going to do an orderly close down.

'It's not liquidation, so all of our creditors and all staff contracts are being honoured, which is a pretty admirable thing from my point of view – the way the board are going to conduct the closure.

'Given the choice, a lot of people these days would tend to take the easy option and could call it liquidation and walk away from a lot of outstanding bills.

'Our owners are determined not to do that. They are a very honourable bunch, and they will make sure everything is tidied up.

'We need to exit the market with some dignity. We all live and will continue to work in this town.

'We have got a lot of loyal customers and friends really, and we want to make sure that it's done properly.”

You do not operate in a town for 103 years without the backing of loyal customers both retail and trade, says Errol.

'We have been lucky through good service and being that local identity that we have had a very strong following.”

The Guinness Brothers store in the 1960s, later became 100% Guinness Appliances.

The continuing unfavourable economic climate, fierce competition and a gloomy future are factors tipping the Auckland-based owners' decision, says Errol.

'There's still a lot of uncertainty around, people are uncertain of their futures. The nice big screen TV perhaps, or the new kitchen, is just getting put on the back burner a little bit now.

'People are thinking long and hard before making those sorts of decisions – and rightly so.

'The economic climate at the moment is not favourable. This is part of a bigger business the owners have and there is a lot of risk to keeping this operation running.

'You have just got to look at what's happening in our industry.

'There are a lot of national companies that are hurting and needing considerable cash injections from the shareholders, and that's not something that our company wants to be in a position of having to do.”

This picture of Guinness Brothers in Tauranga from 1920.

The original business called Guinness Brothers opened for business at No. 1 The Strand in 1908.

It operated from No. 1 until 1986 as a retail store selling items including liquor, farm equipment, appliances, bulk commodities and at one stage petrol.

The business moved from No. 1 in 1986, but returned there to celebrate its centenary in 2009.

The No. 1 The Strand building is of national importance and is classified by The Historic Places Trust in category one.

It is the oldest commercial building in Tauranga and is one of the few remaining bonded store buildings in New Zealand.

It is now occupied by Sun Media and owned by its directors Brian and Claire Rogers.