Failure to find a buyer for the Pumpkin Patch chain of children’s-wear outlets will mean a further 68 stores are closed by the end of the month, with the loss of 560 jobs.
Once high-flyer Pumpkin Patch was tipped into receivership in October, after its debt to ANZ Bank rose to $46million, while for the year ended last July it posted a $15.5million loss.
Receiver for KordaMentha Neale Jackson on Friday said all staff now knew the business had not attracted a buyer, with head office staff given notice their jobs would end in "coming weeks".
He said now that the remaining stores had finished trading through the Christmas period, stock levels were now "considerably reduced" and the remaining stock would go to 56 New Zealand and Australian stores, which were scheduled to close as they ran out of stock, through to mid-February.
Mr Jackson said staff would receive outstanding wages, holiday pay and any other preferential entitlements.
Pumpkin Patch had more than 190 outlets employing more than 2000 staff, across New Zealand, Australia and Ireland, and distribution agreements in Asia, the Middle East and Latin America.
When Pumpkin Patch floated on the stock exchange in in January 2007, its shares initially traded at $4.95, but when placed on a trading halt in October last year they were trading at just 6c, which valued the retailer at just $10.1 million.
