Iconic kids fashion retailer Pumpkin Patch has been tipped into receivership by its lenders and appointed voluntary administrators after failing to reinvent itself in the face of shrinking sales and too much debt.
As a result of this news Mum Central can predict there’s bound to be epic sales ahead – and those Pumpkin Patch classics in your kids’ wardrobe may soon become limited edition, vintage pieces on eBay!
We’ve been longtime Pumpkin Patch fans here especially loving the quality of the clothing, competitive prices (especially during promotions!) and their Urban Angels range, which has ‘age appropriate’ clothing for the tricky-to-dress tween girls.
The New Zealand based Pumpkin Patch’s debt rose to $46 million from $39.1 million in the year to the end of July 2016. It posted a loss of $15.5 million in the same period.
What this means is that the label struggled over recent years in the face of a stronger kids fashion market, general decline in retail spend, the challenge of AU versus NZ dollar and an inability to hold market share in the growing online kids fashion retail space.
In March 2015 the board opened itself for a buy out or refinancing but this was unsuccessful in saving the flailing brand.
KordaMentha receiver Brendon Gibson said all Pumpkin Patch stores in New Zealand and Australia would remain open during the receivership, howeversome are likely to close within weeks.
“Sadly, this will result in some job losses and we will be communicating directly with the staff concerned as soon as possible.”
Pumpkin Patch has around 600 staff across 43 stores in NZ and 1000 staff across 117 stores in Australia.
Gibson said rules for listed companies had prevented receivers from being able to inform staff about the “particularly distressing” news before going public.
The receivers said they would “optimally” sell the business but it was early days.
The retailer’s board today said it was committed to working with the administrators and receivers to get “the best possible outcome for the company and staff”.
Mums everywhere will be devastated with so many Australian and New Zealand women passionate about the brand. Mum Central hopes the staff of Pumpkin Patch are well-looked after during this difficult time by the brand.