Pumpkin Patch to be closed

Pumpkin Patch, in receivership, is being closed down. Photo by Gregor Richardson.
Pumpkin Patch, in receivership, is being closed down. Photo by Gregor Richardson.
Pumpkin Patch, in receivership under $46 million in bank debt, is to be wound down, stock discounted and sold and stores closed after no buyers could be found.

Hundreds of staff across New Zealand and Australia will be jobless by the end of January.

Receivers KordaMentha said yesterday all outlets would remain open until at least the end of December, but a head office restructuring would drop 63 jobs this week.

Receiver Brendon Gibson wanted to sell the business as a going concern, but said without any serious expression of interest had he no option but to wind down operations.

''Unfortunately, while the brand is still attractive, the business itself ultimately drew no interest at the conclusion of the sale process.

''This decision has not been made lightly and we acknowledge it will come as a blow to staff,'' he said.

First Union organiser Lisa Meto Fox, representing Pumpkin Patch's distribution centre workers, called on KordaMentha to guarantee head office workers would receive their full entitlements.

''Securing entitlements like redundancy will mean life is a little easier for the staff who are going to be put out of work,'' she said.

Mr Gibson said the intention was for all outlets to remain open until at least the end of the year to sell stock, which goes on sale this weekend. Some trading would go into January and the receivership process was to be completed by the end of February.

Gift vouchers would be honoured at face value while stock remained to be sold.

While there were no buyers for the chain, Mr Gibson said there was interest in the Pumpkin Patch brand as an asset, which receivers would try to sell.

For its year's trading to July, Pumpkin Patch's debt to ANZ rose from $39.1 million to $46 million the year before and it posted a loss of $15.5 million for the period.

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