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

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news