MASSIVE Fire Sale To Kick Off Immediately At Pumpkin Patch
Prices at Pumpkin Patch will be slashed immediately after receivers failed to secure a buyer for the popular children’s clothing retailer, it has emerged.
The company will lose about 1000 staff across 117 outlets in Australia, and 600 in its 43 New Zealand stores.
This includes 63 staff across nine stores in Perth.
Receiver Brendon Gibson, of Korda Mentha said they had no other option after failing to draw any interest.
"Unfortunately, while the brand is attractive, the business itself ultimately drew no interest at the conclusion of the sale process," he said.
“This decision has not been made lightly and we acknowledged it will come as a blow to staff.”
Retail consultant Brian Walker told Fairfax that Pumpkin Patch got caught in competition with successful discount operators like Kmart, which could produce similar lines at a lower price point.
"It just got caught by the discount department stores with a selection of products that didn't have a clear point of difference," he said.
Pumpkin Patch posted a loss of $15.5 million for 2016, during which time its debt to lender ANZ increased to $46 million from $39.1 million.
The fire sale is expected to kick off this weekend and gift vouchers will be honoured.
All stores would remain open until the end of December.