Craigs Investment Partners broker Paul Valk said: ''Its future is in the balance - currently in the hands of its banks.''
The beleaguered company has for the past two years faced numerous setbacks, including losses prompting a restructuring, bank funding issues and inability to raise capital, or sell itself.
Having floated in January 2007, its shares initially traded at $4.95 and hit a record low of 26c last November.
Since mid-June its shares have slid from 20c to trade down 30% yesterday to 9.9c, following the announcement, on above-average volumes.
Its shares closed the day at 10c, with buyers having dried up.
Mr Valk said given the share price, the question now was what value lay in the company, should a buyer come forward.
Pumpkin Patch has more than 190 outlets employing more than 2000 staff, spread across New Zealand, Australia and Ireland, and distribution agreements in Asia, the Middle East and Latin America.
Instead of releasing its full-year report as scheduled yesterday, Pumpkin Patch instead released a market update and warned ''after-tax losses for the year will now be above the modest level previously advised.
''The company also wishes to advise the market that it is in advanced discussions with its bank regarding the scheduled extension of banking facilities and any impact the revised normalised ebitda [earnings before interest, tax, depreciation and amortisation] expectation might have on applicable terms and conditions, including covenants,'' chief financial officer Dave Foster said in the statement.
Despite an expansive plan for global growth, Pumpkin Patch had unsuccessful forays into the US and Asia from which it had to extricate itself more than two years ago, then its UK operations were placed in administration.
Reorganisation costs of $37 million, including 60 outlet closures, removed any chance of posting a profit in 2012.
Instead, the company booked an after-tax loss of $27.5 million for its full year's trading to July 2012.
At the time, reorganisation included the closure of 40 UK and 20 US operations, closure of unspecified stores not meeting financial targets, and a reduction of more than $5 million in head office costs.
For the year to July 2014, Pumpkin Patch booked a $10.2million loss (including restructuring costs), down on the $5.1million profit the previous year.
Its half-year to January this year saw a 2.2% rise in revenue to $121.9 million and after-tax profit up 10.7% to $1.5 million, but restructuring costs of $1.1 million dragged the profit down to $700,000.
Mr Foster said that when preparing the annual accounts, Pumpkin Patch ''become aware of certain risks which are expected to result in an unanticipated increase in provisioning against the carrying value of working capital''.
This provisioning would reduce normalised ebitda from previous guidance to the market of $14million to between $11.6million and $11.8million.
In October last year, Pumpkin Patch's annual accounts were tagged by auditor PricewaterhouseCoopers, which said there was ''uncertainty that may cast doubt'' about the company's ability to continue as a going concern.
Bank debt in July last year was up 34% from $48.3 million to $64.9 million, but during the following six months it was pared back to $52.7 million.
Late last year, Pumpkin Patch said it was at risk of breaching its banking covenants, and in June it announced it could not find a suitable buyer and would not be recapitalising.
In a surprise to the market, Pumpkin Patch's chief executive, Di Humphries, left the company shortly after.
In early July, Pumpkin Patch issued an earnings downgrade and told the market negotiations were under way for ''revised terms and conditions'' of its banking facilities.
Having risked breaching its banking covenants last November and then been unable to find a buyer or recapitalise this year, Pumpkin Patch set about restructuring itself.
