Pumpkin Patch to buy back up to 8.35m shares

A Pumpkin Patch shop. Photo / Supplied

Children's clothing company Pumpkin Patch is to buy back up to 8.35 million of its ordinary shares.

The purchases are to start from Friday and will continue for up to a year.

Chief executive Maurice Prendergast said the company was managing its capital structure to provide a valuation benefit to remaining shareholders.

"The buyback reflects our belief in the true underlying value of the Pumpkin Patch brand and our confidence in the company's continued financial performance into the future," he said.

Amid widespread losses on world sharemarkets, the company's shares traded down to 79c on Friday, their lowest price since being issued at $1.25 in 2004. The share price peaked at $4.95 in January last year.

Stock exchange data showed Pumpkin Patch has 167m shares on issue. The price today is up 11c to 91c.

- NZPA