Postie Plus store in Whangarei continues to trade while a potential buyer for the financially-beleaguered business is sought. Photo/Michael Cunningham
The administrators of Postie Plus say they have secured a conditional agreement to sell the business and its assets to an "international retail group".
The 82-store clothing chain announced yesterday that BNZ had withdrawn its support for the business amid ongoing trading losses and attempts by the board to find
a buyer or new cornerstone investor had been unsuccessful.
As a result, the company had appointed Colin McCloy and David Bridgman, of PwC, to run the business under administration.
"The intended purchaser is conducting due diligence over the next three weeks and subject to this due diligence and finalisation of formal documentation, the sale is expected to be completed within the next four weeks," the administrators announced today. "In the meantime, the administrators, with the support of the company's management and staff, intend to continue trading the business whilst they work through the sale process. The administrators believe that this going concern sale of the Postie Plus business is in the best interests of the company's stakeholders, including its secured creditors, trade suppliers and other creditors, landlords as well as the company's more than 600 staff."
Postie Plus' losses swelled to $3.8 million in the six months to February 2 from $1.8 million in the same period a year earlier.
