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withdrawn its support for the business amid ongoing trading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
"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
The company had debt of $18.2 million at the start of
February, but that was reduced to $12.1 million later that
month after the sale of its SchoolTex school uniform business
to The Warehouse Group.
Postie Plus reported an annual loss of $11.6 million last
year after what it called "extreme difficulties" at its new,
outsourced distribution centre operated by transport and
logistics provider Kuehne + Nagel which resulted in stock
shortages in stores.