Receiver, Brendon Gibson from KordaMentha said that without a serious expression of interest being received, there was no choice but to sell all stock and wind down the business.
“Our focus since Pumpkin Patch entered receivership in October was to sell the business as a going concern,” he said. “Unfortunately, while the brand is attractive, the business itself ultimately drew no interest at the conclusion of the sale process.”
“We now move to the next phase of receivership which is to sell off all stock and begin to wind down the business. This decision has not been made lightly and we acknowledge it will come as a blow to staff,” he said.
Gibson said that while all stores will remain open until at least the end of December, there would be immediate restructuring at head office, resulting in the loss of 63 jobs this week.
“It is too early to say when individual stores will close. Our current intention is for all stores to remain trading until the end of the year with some continuing on into January as stock diminishes. The liquidation process will likely take until the end of February to complete,” he said.
From this weekend all stock will go on sale.
The receivers also said they have received interest for the Pumpkin Patch brand and would now run a process to optimise the value of that asset.
Meanwhile the union representing distribution centre workers at Pumpkin Patch is calling on KordaMentha, to guarantee that head office workers will receive their full entitlements after learning in yesterday’s meeting that many of them could be put out of a job as early as today.
A First Union delegate on the site said “union members are consoling the office staff, many of whom are feeling pretty lousy after today’s meeting.”
“This is a sad day for the staff who’ve kept the company running for 26 years,” the delegate said.
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