The receivers of collapsed children’s clothing retailer Pumpkin Patch have begun closing the company’s stores
Seven Pumpkin Patch stores in New Zealand were earmarked for closure at the end of last week, just days after the company was placed in voluntary administration.
Receivers from KordaMentha were subsequently appointed to the company and its subsidiaries, after Pumpkin Patch told the market it was unable to find a solution to service its $NZ46 million ($43 million) in debts.
At the time, Pumpkin Patch was operating 43 stores in New Zealand. The seven closing stores are located in Posonby, Takapuna, Henderson, Te Rapa, Wanganui, Coastlands (branded as Charlie & Me), and Hornby.
The closures mean 57 employees will lose their jobs, with the stores to wind up trading by November 8. Employees will receive all entitlements to the gross value of $NZ22,160 per employee, along with access to support services.
Pumpkin Patch operates 117 stores in Australia, which are all continuing to trade on a business as usual basis.
Receiver Brendon Gibson said in a statement on Friday no stores closures in Australia have been confirmed. Gibson previously indicated to SmartCompany the receivers will “be looking at accelerating” stores closures that were already planned under the company’s four-year turnaround process.
Gibson said on Friday the store closures in New Zealand were a necessary step to “stabilise the broader business”.
The receivers are seeking expressions of interest in the Pumpkin Patch business and its assets by November 8. Included in the sale are the business’s trading activities, inventory, customer list, websites and intellectual property.