Pumpkin Patch will reimburse workers who had their wages deducted to pay for the childrenswear retailer’s shares, following a meeting between union officials and the company’s receivers.
Robert Reid, First Union general secretary in New Zealand said workers at the head office and distribution centre were pleased with this development.
Workers at Pumpkin Patch head office and distribution centre had previously received an email from the company’s payroll department, confirming that wage deductions will be made to pay for shares in the failed company.
Workers at the retailer’s head office and distribution centre expressed their outrage after receiving the correspondence.
The childrenswear retailer’s shares have been placed in a trading halt following the declaration that there was no value left in its equity after discussions with its bank were unsuccessful.
“The business remains significantly over-leveraged and capital constrained,” the company said in a statement.
Reid said the email forwarded was at odds with the verbal assurances they had from the company’s receivers that workers wouldn’t have to pay for the shares.
Next week union representatives will attend a creditors’ meeting convened by the administrator (not the receiver) at midday on November 7.
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