Pumpkin Patch to close 34 stores across Australia, New Zealand
Childrenswear retailer Pumpkin Patch said this week it will close 34 stores across both its domestic and Australian markets, after filing for voluntary administration two weeks ago.
The New Zealand-based retailer said 27 stores will shutter in Australia with 145 people expected to lose their jobs on the back of the collapse of the childrenswear retailer. Pumpkin Patch said another seven stores are set to close in homeland New Zealand, where 57 employees will be without a job.
The stores will close by November 15.
Receiver KordaMentha, working on behalf of Pumpkin Patch's bank ANZ, told the Sydney Morning Herald that "work is continuing to identify viable sale options for the business."
Administrators McGrathNicol will hold its first creditors meeting on Monday.
In October, Pumpkin Patch told media there was no value left in its equity after talks with its lender ANZ Bank New Zealand fell through.
"Despite considerable efforts by the board and its management team, it has become evident that no solution is available to the company, at this time, to address the current over-leveraged and significantly capital constrained position," said chairman Peter Schuyt and managing director Luke Bunt said in a statement at the time.
A highly competitive and challenging apparel market, falling sales, a decline in its international wholesale business and northern hemisphere online business, and the rise of the New Zealand dollar against the Australian dollar, are extra contributors to the brand's demise.
Most of its sales were in Australia, and the 27 store closures will leave just a rump of stores for any prospective buyer.
KordaMentha said 52 staff would be redeployed to these stores.
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