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Pumpkin Patch appoints administrator for UK stores
21 Jan '12
1 min read
New Zealand-based children's clothing retailer Pumpkin Patch has decided to abandon its United Kingdom operations, and has placed them under administration.
Last year, the kidswear retailer had quit its United States operations.
Pumpkin Patch Chief Executive, Neil Cowie, said their 36 UK outlets have failed to generate satisfactory returns, and these stores are expected to continue incurring losses for some more time.
The UK retail operations have failed to generate satisfactory returns and this is evidenced in the recent trading losses, he added.
Mr. Cowie said the harsh market conditions forced them to appoint an administrator, who may be compelled to close the stores if no alternatives are found.
He added that the decision to quit UK operations was taken as it was not preferable either for the company or its shareholders to persist with the existing operations.
Pumpkin Patch would, however, bear the costs of restructuring for the first half of the year, including liabilities and other costs like honouring employee commitments and lease payments.
While cash costs for the company are likely to be in the range of US$ 3-5 million, non-cash costs are likely to be between US$ 25 million and US$ 27 million.
Last year, the kidswear retailer had quit its United States operations.
Pumpkin Patch Chief Executive, Neil Cowie, said their 36 UK outlets have failed to generate satisfactory returns, and these stores are expected to continue incurring losses for some more time.
The UK retail operations have failed to generate satisfactory returns and this is evidenced in the recent trading losses, he added.
Mr. Cowie said the harsh market conditions forced them to appoint an administrator, who may be compelled to close the stores if no alternatives are found.
He added that the decision to quit UK operations was taken as it was not preferable either for the company or its shareholders to persist with the existing operations.
Pumpkin Patch would, however, bear the costs of restructuring for the first half of the year, including liabilities and other costs like honouring employee commitments and lease payments.
While cash costs for the company are likely to be in the range of US$ 3-5 million, non-cash costs are likely to be between US$ 25 million and US$ 27 million.
Fibre2fashion News Desk - India
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