Postie Plus opts to be administered

Postie Plus has lost bank support.

Listed clothing retail chain Postie Plus, which employs 19 people in its Napier, Hastings and Waipukurau branches, has gone into voluntary administration after losing bank support.

Administration is a short-term measure that enables the 82-branch chain to freeze its financial position while the administrator, creditors and staff work out a plan forward.

Its 82 stores will continue to trade.

Postie Plus' Napier and Hastings branches each employ seven staff and Waipukurau employs five.

Postie Plus chairman Richard Punter said despite restructuring and improvements in gross margin and market share the company had continued to make ongoing trading losses which the bank would no longer support.

"The board had attempted to recapitalise the company, attract a new major cornerstone shareholder, or to sell the company outright," he said.

That had not succeeded.

"The board has therefore determined that the company cannot continue to carry on its business."

The PWC administration would enable it to trade "so negotiations can continue for it to be sold as a going concern".