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)