The continued rising costs for retailers is taking a toll on business owners

Freedom Furniture's 9.2-million-dollar loss in New Zealand leaves it relying on it's Australian owner Greenlit Brands to pay off debt.

The company's warning conflict in the Red Sea is causing shortages and driving up freight costs.

Retail NZ chief executive Carolyn Young says it's a Catch-22 situation - and a really difficult time.

She says people don't want to pay more goods and services - but, businesses have increased costs that need to be covered somehow.