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More than 60 Postie Plus staff will lose their jobs following the closure of 12 of the retail chain's store, announced today.
Administrators were appointed to the clothing retailer after its lenders withdrew support as the company continued to make ongoing losses.
Administrators today announced the decision to close 12 Postie Plus stores, affecting 64 Postie Plus staff. A further 70 stores will continue trading.
"The stores aren't viable, so unfortunately we've had to make those decisions," Colin McCloy of PwC said.
Prior to the appointment of the administrators, Postie Plus management had identified a number of stores that were for various reasons no longer considered viable.
Those findings were discussed with the administrators and as a result, the chain's Birkenhead, Bishopdale Mens, Bishopdale Womens and Kids, Dannevirke, Gore, Mt Roskill, Papatoetoe, Rangiora Kids, St Lukes, Sydenham, Te Kuiti and Westgate stores will close.
The affected stores will continue to trade in the interim until the final closure dates in the first week of July 2014.
Mr McCloy said the affected staff had been informed.
"We recognise that this is a difficult period for all concerned, and wish to thank staff for their professionalism and commitment, and customers and the local communities for their loyalty and support."
The union representing Postie Plus workers says the announcement today was "highly irregular".
FIRST Union general secretary Robert Reid said neither employees nor the union were advised there was a review of the future of stores.
" No indication was given at last Thursday's creditors meeting that so many stores would be closed and redundancies made.
"In fact at the creditors meeting the Administrator gave the opposite impression, that it would be business as usual for the next few weeks," Mr Reid said.
"This action raises the question of whether the Voluntary Administration that the company is under is simply a ruse to implement pre-determined restructuring under the protection of Administration.
"Under the Companies Act Administration is there to protect the interests of creditors. In this case it seems to be used for the opposite purpose," Robert Reid said.
"While staff recognise that store closures and redundancies may happen at some stage, the way this has been handled is unacceptable.
The union would be seeking legal advice.