One of the Australias largest children’s clothing store Pumpkin Patch went into receivership yesterday.
In a statement to the market on Friday, October 21, chairman Peter Schuyt and managing director Luke Bunt said the company’s “ability to move forward from here is impacted by the lack of available capital for debt reduction and reinvestment”.
Yesterday (26th Oct 2016) company announced the news of moving into voluntary administration with considerable regret.
Around 1:30 Pm 26th 2016, Pumpkin Patch Securities was suspended from the New Zealand stock exchange.
According to smart companies. Andrew Grenfell and Conor McElhinney of McGrath Nicol were appointed as voluntary administrators, while the Pumpkin path’s bank appointed Neale Jackson and Brendon Gibson of KordaMentha New Zealand as receivers.
Related Article: Debtor Finance
What happened to gift Card holders?
Whenever a big retail store went to the receivership of voluntary administration, their first move is to stop or ignore Gift cards. We have seen this when Dick Smith went into receivership. However, with Pumpkin Patch, they have decided to accept Gift cards for Dollar to Dollar basis. It mean’s you need to buy $100 of items to use your $50 gift card and pay another $50 cash.
What happens to employees?
Sooner or later there will be Job losses. However, according to the receivers, The staff will be paid for their services and Australian staff will get their entitlements under relevant legislation. All the decision will be in favour of the team.
We think the fall started in 2012 when they exit from UK market. Then in 2015 company tried to sell itself, but never able to close the deal. In 2016 the company reported $20.3 Million loss. It is a sorrowful news for a company with 117 stores across Australia and 42 shops in New Zealand.