Pumpkin Patch Ltd., New Zealand's Auckland-based retailer of children's wear has rendered about 55 workers unemployed at its head office and distribution centre.
The company has said that it is closing its US outlets and downsizing its UK business. The firm's Chief Executive Officer Maurice Prendergast had a meeting with the staff at the East Tamaki distribution centre and had even spoken to groups of other employees.
About 20 employees at the distribution centre are represented by the National Distribution Union. Robert Reid, the Union's General Secretary, stated that the retail firm had notified the Union that the six-person night shift at the distribution centre is expected to be discontinued.
Reid added that unemployment allowance is available for those who will be rendered unemployed and a notice period of one month would also be given, during which the six Union members are asked to not report for work.
The kids clothing chain stated that it does not see any signs of improvement in the 'challenging and volatile' markets in near future. Hence, it is closing down its US outlets and would close down its non-lucrative outlets in the UK.
Fibre2fashion News Desk - India
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