A trading halt remained in place on Pumpkin Patch but that did not stop someone trying to sell 2000 shares at 2c each.
The shares last traded at 6c.
Craigs Investment Partners broker Chris Timms said the company was in a dire situation.
The worst-case scenario could be the banks refusing to back Pumpkin Patch and appointing a liquidator.
There was also the chance for someone to buy the company to try to turn around its fortunes, he said.
Company chairman Peter Schuyt and managing director Luke Bunt warned shareholders it was "highly unlikely" there was any residual value in the company’s equity.
"Pumpkin Patch expects further work and discussions with relevant stakeholders will be completed in the next few days and that, when an outcome is clear, that will be announced in the market."
Since September 29, the company had undertaken further work to address the company’s capital restraints.
"This further work, coupled with discussions with the bank and certain key stakeholders, has generated substantial uncertainty — which remains ongoing — regarding the company’s future in the context of its current financing arrangements," Messrs Schuyt and Bunt said.
Mr Timms said the problems for Pumpkin Patch stretched back six or more years.
The company overextended itself in the United States, the United Kingdom and the Middle East.
It did pull back from some markets and evolved into an integrated designer, manufacturer and distributor of childrenswear, and had a significant online presence.
The company operated stand-alone retail outlets in New Zealand and Australia and had wholesale relationships in the UK, the Middle East, Australia, South Africa and Asia.
"Pumpkin Patch was the thing for kids to wear. Everybody was wearing their clothes. But other choices have become available and the ability to stand out in a crowd meant it was not the go-to product."
Pumpkin Patch’s risk profile had increased substantially over the past one to two years and the company remained a turnaround story, he said.
