Home / Knowledge / News / Apparel/Garments / Postie Plus shareholders approve sale of Babycity
Postie Plus shareholders approve sale of Babycity
11
May '12
Postie Plus Group (PPGL) shareholders have given their overwhelming approval to go ahead with the sale of the Babycity chain so the family friendly retailer can focus on expanding its flagship Postie brand nationwide and provide funds for acquisitions of complementary brands.

“This is a significant milestone and with our shareholders' approval we can now get on with realising PPGL's potential,” Chairman Richard Punter said following the Special Meeting of Shareholders in Christchurch. The Board expects that the remaining conditions will be settled within the next few days.

“We are in a strong position. Customers have just voted Postie their Clothing Store of the Year in the inaugural Roy Morgan Customer Satisfaction Awards. We have a solid structural, operational, and financial platform for managed growth with ongoing improvements in efficiencies and the cost of doing business.

“And we are continuing the transformation of Postie as a modern, exciting retailer, with an attractively priced range of apparel, health and beauty products for all the family. We are ready to expand our offering and the sale allows us to reconcile our retail operations,” he said.

The deal which is likely to be concluded later this month involves the sale of 11 of the 18 Babycity stores, stock and forward orders worth some $5.6 million to Baby City Retail Investments, a company operated by former LV Martin manager Trevor Douthett. Baby City Retail will also take on specific liabilities, resulting in a net amount payable estimated at just over $4.0 million.

“Postie Plus will continue to supply apparel to the Babycity chain under a wholesale agreement, and has signed up to a five-year restraint of trade in infant hardware retailing. Two of the stores were of no interest to Baby City Retail. PPGL Chief Executive, Ron Boskell said the cluster store in Queenstown would be sub-leased and the Postie stand-alone store in Wanganui reduced in size.

Baby City Retail is taking over 11 stores, either by assignment of the lease or by sub-leasing, and has confirmed the take up of two of five optional tenancies in Dunedin and Nelson.
Mr Boskell said PPGL's plans for the remaining three stores were to open a clearance outlet for Auckland in the Lynnmall space, extend the Postie offering in Invercargill to include a full range of health and beauty products and close the Hastings store when the tenancy lease expires in late June.

Mr Boskell said the retail climate was tough with third quarter sales for the period to the end of April down 5 per cent compared with the same time last year.

“Expenses are continuing to be well managed to offsetting the current sales downturn and we are confident that momentum will pick up and we will end the fourth quarter strongly,” he said.

“The retail climate with value conscious shoppers, our position as New Zealand's favourite clothing store and the opportunity to buy identified brands that will extend our appeal and nationwide presence means we must act swiftly and decisively.”

Postie Group Limited (PPGL) is a New Zealand retail success story with a nationwide chain of 82 apparel stores found in major cities and in heartland towns. The flagship Postie brand offers families a wide range of products including apparel for women, men and children, sleepwear, thermals, lingerie, accessories, cosmetics and school wear.

Postie Plus Group (PPGL)


Must ReadView All

Global economic upswing became broader & stronger: IMF

Textiles | On 19th Apr 2018

Global economic upswing became broader & stronger: IMF

The global economic upswing that began around mid-2016 has become...

Courtesy: ITMA

Textiles | On 19th Apr 2018

ITMA 2019 expanding space due to overwhelming response

Due to overwhelming response, the exhibition space has been increased ...

BIDA’s Europe trip to showcase a different Bangladesh

Apparel/Garments | On 19th Apr 2018

BIDA’s Europe trip to showcase a different Bangladesh

The Bangladesh Investment Development Authority (BIDA) is taking a...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Top executives
Textile industry

Defining MSMEs on the basis of turnover makes it simpler to do business

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


April 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search