Postie Plus agreement

More than 600 staff of Postie Plus have a three-week reprieve as administrators of the clothing retailer work with a potential overseas buyer for the nationwide chain of 82 outlets.

Barely 24 hours after PricewaterhouseCoopers was appointed administrator, with the company heavily in debt and financial losses mounting, it yesterday announced a conditional agreement had been signed to sell the assets and business as a going concern, to an international retail group.

Instead of a planned creditors meeting next week, the possible buyer is conducting due diligence during the next three weeks, and if a purchase goes ahead, it could be completed within four weeks.

Co-administrator Colin McCloy said in a statement yesterday he believed a ''going concern'' sale was in the best interests of the company's stakeholders, secured creditors, trade suppliers, other creditors, landlords and its more than 600 staff.

Postie breached its banking covenants in February and recent attempts by its board to recapitalise, or sell the chain, had been unsuccessful.

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