Receivers couldn’t entice a buyer for Pumpkin Patch so all stores across Australia and New Zealand will be closed by mid-February. On January 31, 68 stores will shut down leaving 560 employees without a job. The remainder of stores will also close throughout February.
Receiver Neale Jackson, of KordaMentha, said, “We have successfully traded stores through the traditional holiday period and stock levels are now considerably low. The balance of stock will be consolidated in the remaining stores as the receivership enters its final phase.”
All stores became aware towards the end of last year that they would gradually be closing as stock sells. They all received holiday pay, outstanding wages, and any other entitlements. Last October the company was tipped into receivership, as the company owed its lender ANZ Bank New Zealand a total of NZ$59.5 million. The report says the company owed more than NZ$46 million on July 2016, when it posted an annual loss of $NZ15.5 million.
Jackson explained that it’s been a difficult time for all Pumpkin Patch staff, and the company has acknowledged them for continuing to work diligently throughout the closure.