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Oct 27, 2016
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Pumpkin patch enters voluntary adminstration

Published
Oct 27, 2016

New Zealand children's clothing retailer Pumpkin Patch has appointed voluntary administrators after failing to turn its image around, on the back of sinking sales and growing debt.

The Auckland-based brand said its board has appointed McGrathNicol's Andrew Grenfell and Conor McElhinney as administrators and said it understood KordaMentha's Neale Jackson and Brendon Gibson had been named receivers.


Pumpkin Patch is seeking a buyer after entering voluntary administration - Pumpkin Patch


Last week, 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," chairman Peter Schuyt and managing director Luke Bunt said in a statement.

"With no likely solution available, the board believes that the constraints currently experienced by the business are too great and the only appropriate action to best protect the interests of stakeholders is to appoint administrators."

Earlier in the year, Pumpkin Patch said first sales for the six months ending January 31, fell 16 percent to $102.8 million in the first half from a year earlier, with online sales down 13 percent.

It posted a $6.8 million loss in the first half, compared to a $700,000 profit a year earlier. It posted a $6.8m loss in the first half, compared to a $700,000 profit a year earlier.

However, in August, the firm said the second half witnessed an online sales growth of 44.1 percent in Australasia, and same-store growth of 4.2 percent in Australia and 5.4 percent in New Zealand, which “contrasts significantly with the challenges experienced in the first half.”

Some stores are likely to close within weeks, said the brand. Prior to the receivership, Pumpkin Patch had already announced that it planned to close further stores.

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