The surprise departure of ailing Pumpkin Patch's chief executive Di Humphries this week has left the indebted children's retailer ''without a leader through a critical period'', according to Forsyth Barr broker Suzanne Kinnaird.
''The timing is surprising given the company is in the midst of a turnaround, with material execution risk remaining and little outcome seen as yet,'' Ms Kinnaird said.
Ms Humphries joined Pumpkin Patch, from Hallenstein Glassons, as merchandise and brand director in August 2012, and was a year later promoted to chief executive.
The timing meant Ms Humphries was unlikely to see any material results from her tenure as chief executive, Mrs Kinnaird said.
She said Pumpkin Patch's search for a new chief executive should focus on candidates with a strong background in supply chain and inventory management, which were two key areas of weakness in Pumpkin Patch's business model.
Execution of its restructuring remained ''critical'' for Pumpkin Patch, particularly given its elevated debt levels, which meant the company still had significant hard work ahead.
Ms Kinnaird said Pumpkin Patch's first-half trading showed ''some early signs of improvement from strategic changes'', but highlighted the second half of 2015 was critical to ensure it met its earnings guidance and bank covenants.
Late last year Pumpkin Patch said it was at risk of breaching its banking covenants, and this week announced it could not find a suitable buyer and would not be recapitilising.
