Retailers with eftpos should expect no change to services, the receivers said.
Following a trading halt yesterday morning, ProvencoCadmus chairman Rick Christie released a statement about 3pm saying the company, an e-commerce provider both domestically and internationally, had recommend the ANZ National Bank appoint receivers KordaMentha, as ProvencoCadmus "will not have sufficient funds to meet its working capital requirements".
"This [$45 million] debt has now become unsustainable, with interest costs over the last year exceeding $6 million, putting added strain on the group's cash position," he said.
Despite the Provenco-Cadmus merger in May last year, with expected cost savings of $7.9 million being well exceeded at $20 million savings, Mr Christie yesterday said that since restructuring the combination of debt, sluggish investment and product markets and a weaker-than-expected trading performance had affected the company's goals.
While there were "no offers on the table", there were a "number of parties" from New Zealand and overseas already interested, and a sale was "quite possible", Mr Stiassney said.
"We are currently assessing the situation and working to ensure that there will be no disruption to normal service," Mr Stiassney said.
When asked about potential for redundancies, Mr Stiassny said the company had 180 staff, including 30 overseas, and had already been through restructuring processes.
Provenco listed in July 1993, raising $5.22 million from a 90c per share float, hitting a share price high of $5.63 in April 2000.
Last week, its shares halved in value from around 6.5c to close at 3.5c each.
They were suspended from trading on yesterday's news.
ABN Amro Craigs broker Peter McIntyre said the credit markets were not working at their full potential and the company's banks were not prepared to take on more financial risk, highlighting ProvencoCadmus' sale of assets to assist capitalisation was in a weak market at lower prices.
Last year, the company's major shareholders Todd Capital (12.6%) and Tahia Investments (6.0%) provided $8 million of additional funding, but ProvencoCadmus then booked a half-year $10.7 million loss in February, on revenue of $89 million.
In late-June, Mr Christie announced an extension to current bank facilities through to August 30 "in support of our timetable to complete a recapitalisation of the company".
He said the company had ANZ National's conditional support for a three-year funding package, following recapitalisation, of which the recapitalisation included the recent $22.5 million sale of its technology distribution business Vantex Business to US concerns.
At the end of last week, Mr Christie said some of ProvencoCadmus' largest shareholders had declined to fund further working capital of about $5 million, but other shareholders, and broader restructuring avenues were still being pursued as the company "continues to face risk and uncertainty with its forecast cash flows".
