Whangarei's Pumpkin Patch will close

Pumpkin Patch, Tarewa Mega Centre, Whangarei. 31 October 2016 Northern Advocate photograph by Michael Cunningham NAG 02Nov16 -

Eight staff at Whangarei's Pumpkin Patch store will lose their jobs as the company's receivers wind up the business during the next few months.

But receiver Brendan Gibson, from KordaMentha, could not say exactly when the Whangarei store would close.

"Our current intention is for all stores to remain trading until the end of the year with some continuing on into January as stock diminishes," he said.

"The liquidation process will likely take until the end of February to complete."

Mr Gibson said Pumpkin Patch's intention since it entered receivership in October was to sell the business as a going concern but since then, without a serious expression of interest from a buyer, there was no choice but to sell all stock and wind down the business.

From this weekend stock would go on sale. Gift vouchers will be honoured only while stock remains available, he said.

Mr Gibson said the company had received approaches from several agencies to assist redundant staff find alternative employment and ensure they were aware of the support that was available.

The company was tipped into receivership by its lenders last month and appointed voluntary administrators after failing to reinvent itself in the face of shrinking sales and too much debt.

Shortly before this, the retailer said there was virtually no value left in its equity after talks with its lender ANZ Bank New Zealand fell through.

Pumpkin Patch's debt to ANZ Bank rose to $46 million from $39.1m in the year to the end of July 2016. It posted a loss of $15.5m in the same period.

Mr Gibson announced this week there would be immediate restructuring at head office resulting in the loss of 63 jobs this week.

They would receive holiday pay and outstanding wages, but would not receive redundancy packages. Mr Gibson said there were no assets available to meet any redundancy entitlements.