I had the same thing with my husband's Kobo Touch after just a month.
I insisted on WH Smith, where I bought it, fulfilling handling the problem, as my contract was with them - not Kobo. I had to send the Touch away, but my husband received a replacement after a month, and it's been working fine ever since.
Kobo support are very responsive by email... but I think they need to change their policy for ereaders that have problems so quickly after purchase. It just leads to a lot of customer unhappiness.
I would check your legal rights as a consumer in NZ. In the UK, we're covered for the first 30 days as not fit for purpose.