Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Postie Plus to shut 12 stores, eliminate 64 workers

Postie Plus to shut 12 stores, eliminate 64 workers

By Suze Metherell

June 19 (BusinessDesk) - The administrators of failed retailer Postie Plus Group, which has been bought by a yet-to-be-named foreign retailer, will close 12 of the chain's 82 shops in New Zealand, cutting 64 workers.

Prior to the appointment of administrators David Bridgeman and Colin McCloy, Postie Plus management had identified a number of stores that were no longer viable, the PwC receivers said in a statement. The retailer went into voluntary administration last month after unsuccessful attempts to recapitalise the business, including an attempt to find a buyer or a new cornerstone shareholder.

The stores to be closed are Birkenhead, Bishopdale Mens, Womens and Kids, Dannevirke, Gore, Mt Roskill, Papatoetoe, Rangiora Kids, St Lukes, Sydenham, Te Kuiti and Westgate. All staff have been notified and the stores will close in the first week of July, with the remaining 70 to stay open.

On June 4, the day after the appointment of Bridgman and McCloy, a conditional agreement was reached to sell the chain as a going concern to an overseas-based retailer which doesn't have a presence in New Zealand. The buyer is conducting due diligence, with the sale expected to be completed around the end of the month.

In April, Postie Plus said it was in breach of lending covenants and expected to remain so “for the foreseeable future,” meaning its bank funding is repayable on demand, though the arrangements in place with lenders were sufficient to meet the company’s forecast funding requirements up to July 30.

The company was hit by supply chain disruptions in the summer of 2012 and 2013 after outsourcing its distribution centre to a third party, while shifting its headquarters to Auckland, where it anticipated growth. After receiving legal advice, Postie Plus had said it intended to “vigorously” pursue a damages claim.

Postie Plus shares last traded at 7.3 cents, prior to being halted at the end of May pending an announcement, and then suspended on the administrator appointment. The shares were the third-worst performer on the NZX All Index over the past year, having slumped 52 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news