Hamilton retailer Forlongs is considering closing after 70 years, citing competition from multi-store operators.

One of Waikato's largest family owned retailers is considering closing after 70 years.

Workers at retailer Forlongs attended a hastily called meeting just after 5pm at the company's Frankton premises on Tuesday where they were told management was considering closing the retail operation.

The Hamilton retail giant, which has sold everything from furnishings to appliances, hardware to electronics for over 70 years, is a mainstay of the Waikato's commercial sector. The firm employs over 100 people and their jobs are now in jeopardy.

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Staff leaving the meeting would not comment, but some appeared visibly upset. All had official letters in their hands.

Managing director Terry Forlong refused to comment and was seen locking the store's doors after the 15-minute meeting but in a statement said:

"After trading for 70 years, Forlongs Furnishings Limited is considering closing its retail business. To all our many loyal customers, it is still business as usual at this point in time. Forlongs gift cards, Forlongs loyalty rewards, orders, and warranty claims will continue to be honoured. We are currently working through a consultation process with our employees, and once a final decision has been made, a further public statement will be released.

CHRISTEL YARDLEY Forlongs staff were called into the store for a meeting after hours on Tuesday.

We have seen many changes in the retail environment in recent years, including competitors with bigger buying and discounting power making it harder for a single store operator to compete. In addition there is a personal element to the decision to consider closure as the company directors are facing retirement age, and this is impacting upon the management of the business."

Forlong said a final decision would be made in ten days after consulting with staff.

A family member of one staffer, who declined to be named, said prior to the meeting that staff had been fearful of what might be revealed since being summoned earlier on Tuesday.

CHRISTEL YARDLEY/FAIRFAX NZ Forlongs staff leave the company's Frankton store after being told the retailer is under threat of closure.

He said the company had stopped moving new stock into the showroom and a manager had told his family member that trading had not been good.

"(Staff) weren't overly surprised. Apparently it's been on the horizon for some time."

Hamilton mayor Julie Hardaker said she was saddened to hear the possibility of Forlongs' closure.

"It's too early to contemplate what that will mean for Frankton or the impact it will have," she said.

"As [Terry Forlong] said, the nature of retail has changed and it's changed to what it was when Forlongs opened 70-odd years ago.

"Forlongs have a really loyal following in Hamilton and the Waikato and offer a market that hasn't been serviced through mainstream retailers."

Frankton market organiser Vinod Bhikha said Forlongs is an important financial part of the Frankton business district.

"If they were to leave that would have a great impact on businesses in the area," he said.

"It's a huge space and it will take a well-established business to fill that if they were to leave.

"But I hope it doesn't go down that path."

Bhikha said he does not believe the loss of Forlongs will have an impact on the Frankton markets.

"It's a different market and a different type of audience but what Forlongs excel in is customer service, and you can't get that when you buy things online," he said.

"It's a shame."

The company was established in 1946 and has steadily expanded since through economic booms and downturns and increased competition from offshore-owned chainstores like Harvey Norman, which has steadily whittled away privately owned large retailers.

The Forlongs retail operation dominates the Frankton commercial landscape with 12,300 square metres of retail space covering almost two city blocks between Commerce and Hall Sts, and a 2000 square metres warehouse nearby on Kent St.

Forlongs has a loyal customer following with its strong community connections and interest free deals but bucked retail trends in recent years with the family refusing to open on Sundays in a crowded retail market because of their Christian beliefs.

Despite acknowledging that competitors did at least as much trade on Sundays as on Saturdays, Terry Forlong said in 2012 seven-day trading was not on the cards.

"Not in the foreseeable future. It's a personal belief of some of our shareholders," he said.

The company was started by Ralph and Evelyn Forlong when they bought out an existing outlet. The fledgling company auctioned cars to make ends meet in the early days and was thrown into chaos by the 1947 Frankton tornado, which carved a swathe through the suburb, killing three people.

Ralph Forlong was prominent in efforts to help locals recover and the business soon bounced back, expanding to become a major dealer with his son Ivan, who was dubbed unofficial mayor of Frankton, at the helm until succeeded by his son Terry as managing director in 2002.