Shares in childrenswear retailer Pumpkin Patch plunged to a record low for the past seven and a-half years, trading at 26c yesterday.
They were floated in January 2007 and initially traded at $4.95. During each of the past two days' trading, the shares had shed more than 10% on value in ''solid trading'' volumes as investors exited them, Craigs Investment Partners broker Peter McIntyre said.
At Pumpkin Patch's annual shareholders meeting on Tuesday, management broached the possibilities of breaking banking covenants and going to shareholders to raise more cash, which had taken investors by surprise, Mr McIntyre said.
Although Pumpkin Patch ''had a spectacular global growth plan'' after its 2007 launch, that had not gone as planned, Mr McIntyre said.
Pumpkin Patch had unsuccessful forays into the US and Asia, from which it had to extricate itself a couple a years ago, and since then positive Australian retail trading, which had offset poor New Zealand results, had also softened.
Pumpkin Patch said it had retained the backing of the ANZ and was hoping for a good Christmas trading period.
