Pumpkin Patch

[Crackity]

We could have a little orchestra - roger gets a five parp salute as well!

I seem to recall Belg was recladding one of the Egyptian pyramids or something like that.....

[percy]

What a great lesson in financial folly buying a share in a downtrend we are seeing .!!
Maybe more a lesson in grave digging than pyramid building!
5 years down 31.18%
2 years down 20%
1 year down 53.28%
6 months down 24.71%.
They came into retail with fresh product.
Now they are no different from Kmart,Farmers, or The Wharehouse ,all, who pay a lot less rent for their space in malls, and who have logistic systems that work.

Above posted 01-02-2014.
If I were a shareholder I would be upset with today's announcement.
Yet, if someone can save PPL, possibly the new CEO Luke Bunt is the person.
He was for many years The Warehouse's CFO.He has been on the board of Smiths City and is currently on Comvita's board.
I think the main reason Rod Duke was never interested, is because PPL is mainly a Mall Store operation, while Duke's Briscoes and Rebel Sports are "Big Box" operations,as is KMD.

[silverblizzard888]

More people jumping ship! Run before you look even worse in your career X(

https://www.nzx.com/companies/PPL/announcements/268164

[winner69]

More people jumping ship! Run before you look even worse in your career X(

https://www.nzx.com/companies/PPL/announcements/268164

And the share price continues to sink.

Pumpkin a $25m market cap now

Petty cash for many but still no buyers -- he again they would have to take own that debt and those lease obligations.

Wonder if the bank manager is still saying 'they are rooted guys'

[Sideshow Bob]

Do bank managers use the word 'rooted' Winner? :p

Well, maybe in the case of PPL........

[sb9]

Gosh...hole get bigger and deeper!!! hits new low both for sp and company prospects. Where to from here?

Disc-non-holder.

[Crackity]

Gosh...hole get bigger and deeper!!! hits new low both for sp and company prospects. Where to from here?

Disc-non-holder.

Where to from here depends on the bank.....

[Harvey Specter]

Do bank managers use the word 'rooted' Winner? :p

Well, maybe in the case of PPL........Yes - I believe they do in this case!


Where to from here depends on the bank.....

[Beagle]

Hits the nail on the head. Effectively they're trading at the behest of the bank who are basically looking to extricate themselves with the minimum possible loss. This only goes one way from here...No way everyone escapes from this complete mess smelling of roses.

Posted on 3 July 2015. If this isn't the end then it will be next time they disappoint their bankers.

[IAK]

About time they put this horse out of it's misery.

[Crackity]

Posted on 3 July 2015. If this isn't the end then it will be next time they disappoint their bankers.
http://www.sharetrader.co.nz/images/icons/icon1.png
Shall I state the obvious Winner? Ok I will - the bank lenders have to be getting nervous as the share price declines.....there is ( from 2014 annual report in July) 25 million due for repayment on 30 Sept 2015 and 50 million due for repayment on 29 Feb 2016 ( an interesting date - must check next years calendar). hmmmm.....


Posted 8 june....

it it doesn't look good from here

[Beagle]

I agree and think a lot can be read into director resignations in recent times. Nobody looking to build their directorship credentials really wants to be on deck when the Titanic goes down...it's not a good professional look regardless of who really steered the thing into the iceberg in the first place.

Good post Crackity, I can trump the date of your post, how about this one Posted 26 November 2014.

I agree with your prognosis...this ship is leaking water like sieve...there's only so much water the titanic can take on before the inevitable happens.

People punting by buying at 10 cents have rocks in their heads IMO. Really the company should be placed in a trading halt until the outcome of the bank's decision is known.

[okay]

This young lady from the NBR has been onto it also. She hasn't allowed these exec's to slink off into the night in their life boats unnoticed although I'm sure they would like to. Each exec she has posted their departure.

http://www.nbr.co.nz/article/pumpkin-patch-delays-worse-expected-result-release-cs-179238

An excerpt from her article today:
"But high executive team churn has made it hard for the business to gain traction. It recently named Luke Bunt as its new managing director, replacing Di Humphries who resigned in June after less than two years in charge.

Early this month it announced the appointment of Dave Foster as its chief financial officer to replace Steve Mackay, who quit after less than a year.:)

[Beagle]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11518779 Mr Lister at Craigs clearly thinks their situation is very grave.

[Xerof]

Amongst all the back-slapping I told you so's, it's interesting to see who was buying the downtrend in MARCH 2014 - I see Sparky showed some interest at 82, Belg was pyramiding in all the way to under 50 cents....even Winner was spruiking it up (but I'll bet he was actually selling;)) and golden city 'couldn't resist' at 55 (but I would expect his trading discipline would have seen him cut his losses)

On the other hand, Hoop said in late 2013 that TA-wise, it's broken, percy was very scathing and bearish, and in one post on the 19 March 2014, Xerof cryptically gave a final warning - it's well past midnight for this pumpkin

I haven't looked any later on the thread, but I think some again found it 'irresistible buying' around the 20 cent mark. I foolishly thought about it too at 20 cents - but only briefly, before snapping out of the nightmare

[golden city]

i have sold out at 50c lucky..

[Crackity]

Its not called bank-ruptcy for nothing :D

And there aren't that many good share trading jokes KW :)

[winner69]

Do bank managers use the word 'rooted' Winner? :p

Well, maybe in the case of PPL........

Well and truly 'rooted' ..... worse than being truly munted

After all this time in fixing the supply chain looks like inventory remains a problem ..... heaps of the wrong stuff me thinks

[winner69]

so full year npat going to be more then the 'modest' amount previously indicated .... sounds indecently bad

[Snow Leopard]

so full year npat going to be more then the 'modest' amount previously indicated .... sounds indecently bad

NPAT is going to be less

NLAT is going to be more (L=loss)

(Like when she says turn the air-con up when she means set the temperature lower)

Best Wishes
Paper Tiger

[winner69]

NPAT is going to be less

NLAT is going to be more (L=loss)

(Like when she says turn the air-con up when she means set the temperature lower)

Best Wishes
Paper Tiger

OK PT - I should have just said that the forecasted 'modest' loss is now going to be heaps more, in line with what one would expect of a 'rooted' outfit

[Blendy]

sigh... i bought some PPL a long time ago and forgot all about it (been busy doing other things and have been away from here for a while, hi again everyone!), and now it's a very sorry state of affairs isn't it. Hmmm, what to do... hope that some other retailer will buy it out? This price is probably not going to improve in a hurry/ever is it...

[Beagle]

Blendy I think you've given a great illustration of why one should never simply forget about one's investment. I don't like your chances of avoiding a capital loss on this one.

[BeeBop]

Currently thinking back to when I was selecting between FPA and pumkin patch, on the surface, they seemed similar but I could help but see the PP stores in the Middle East and how badly set up and run they were. Decided to sink my money into FPA at around 37 cents....and we know what happened to FPA - needless to say, they reduced an investment mortgage a tad.

Overall, it is a pity to see PP this way, in their international stores they just looked bad...no good sales, small space and way over cluttered; absultely no match for the original NZ stores...maybe they just got the basics wrong...too sad...I now use the store GYMBOREE for my halfling as they are like PP used to be.

[Blendy]

Blendy I think you've given a great illustration of why one should never simply forget about one's investment. I don't like your chances of avoiding a capital loss on this one.

Absolutely right. I should have been more on top of that. Capital loss for certain I am sure. It's not terribly large really, but still annoying.

[stoploss]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11519846

[Snoopy]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11519846


Are there no business journalists left at the Herald?

"But however bad that debt-to-equity ratio was looking on Friday morning, it was 31 per cent worse by the end of the day."

The above relates to the fall in share price, which has no effect on the equity ratio on the day. A sinking share price makes it difficult to raise new capital to fix the equity ratio, that's true. But on a day to day basis, a change in the share has no effect on the balance sheet and consequently no effect at all on the equity ratio. You would have thought that Liam Dann would know better.

SNOOPY

[Snow Leopard]

Maybe it is just selective memory but whenever a company is in talks with it's bank about their debt and need the banks continued cooperation to stay alive then the bank is always

ANZ

and these two company statements usually follow in quick succession.

1/ - Bank is fully supportive

2/- Bank has withdrawn funding and the receivers are pulling into the car park.

Best Wishes
Paper Tiger

[h2so4]

Are there no business journalists left at the Herald?

"But however bad that debt-to-equity ratio was looking on Friday morning, it was 31 per cent worse by the end of the day."

The above relates to the fall in share price, which has no effect on the equity ratio on the day.

SNOOPY

...... ah probably price-to-equity ratio SD

[etrader]

Looking at the successful companies who would consider a cheap takeover would cotton group take a look at this.

Some synergies to create but a cheap entry into the store network.

Cotton on group are opening 1 store daily.

[BlackPeter]

Looking at the successful companies who would consider a cheap takeover would cotton group take a look at this.

Some synergies to create but a cheap entry into the store network.

Cotton on group are opening 1 store daily.

Good question. I think Cotton on's strength is to sell good quality at reasonable price. They do well when customers can directly compare their products (like in malls) ... and they have a quite low cost overhead.

Not sure, whether taking over PPL's store chain would help in that regard ... expensive long term leases for shops in often not that desirable locations. Might have been quite different 5 years ago, when customers still used to frequent the stores ... but now the PPL stores are off the grid, people are just not used anymore to direct their vehicles into their parking lots ...

[Beagle]

Net Bank Debt fell 40% to $39m. That's the key takeaway from the result and that's the key reason in my opinion why the ANZ decided to extend their debt facility. It would be interesting to see how tight all the covenants are on the renewed debt facility but I would speculate the ANZ will have this company on a very tight leash with the primary goal of reducing their debt further. With strong currency headwinds and a soft economy and tough retail environment I see little medium term prospect of this company returning to profit in the foreseeable future.

[Snow Leopard]

From today's announcement (https://nzx.com/companies/PPL/announcements/270989) (my emphasis):

"In Friday’s market update the company also signalled that it was in advanced discussions with its bank about the scheduled extension of banking facilities. Peter Schuyt said discussions with the company’s bank had been successfully concluded with facilities in place through to the end of 2017, on terms and conditions appropriate to the circumstances of the company"

No comment

Also note from the accounts that they discovered they could not add up properly (my interpretation) for the last couple of years. - Still we all make mistakes.

Best Wishes
Paper Tiger

[Crackity]

From today's announcement (https://nzx.com/companies/PPL/announcements/270989) (my emphasis):

"In Friday’s market update the company also signalled that it was in advanced discussions with its bank about the scheduled extension of banking facilities. Peter Schuyt said discussions with the company’s bank had been successfully concluded with facilities in place through to the end of 2017, on terms and conditions appropriate to the circumstances of the company"

No comment

Also note from the accounts that they discovered they could not add up properly (my interpretation) for the last couple of years. - Still we all make mistakes.

Best Wishes
Paper Tiger

I will comment for you PT - this company is now in business to make money for the ANZ - I'm sure there are fees / covenants / stepped interest rates and more fees galore.....

and they ( ANZ ) reserve the right to pull the plug at any time.

To use a Hunter S Thompson phrase they are deep in the belly of the beast.....

Sad.

[winner69]

AGM sounded like it was a pretty gloomy affair. Wonder if anybody beside the bank anger went?

Strategy still based on hope - as already signalled F16 is a disaster - lets hope like hell that F17 is better

Your brand has some value the head man said - and he is hoping to see hs grandchildren proudly dressed in pumpkin one day, just lie his own children.

[Beagle]

AGM sounded like it was a pretty gloomy affair. Wonder if anybody beside the bank anger went?

Strategy still based on hope - as already signalled F16 is a disaster - lets hope like hell that F17 is better

Your brand has some value the head man said - and he is hoping to see hs grandchildren proudly dressed in pumpkin one day, just lie his own children.

Wow...I had a good read through Chairman's and CEO's address's. This stood out:-


we are confirming today that the outlook for F16 remains extremely challenging both from a market point of
view, particularly in New Zealand and in relation to dealing with a number of
legacy issues.

As previously indicated trading EBITDA for F16 will be significantly below
F15 . Further guidance will be provided at the time of our half year result
announcement in March.

Looks like a grim and extremely challenging / lengthy task ahead. Sad to see a company of such former standing on its knees like this and ostensibly trading at the behest of the ANZ.

[winner69]

Wow...I had a good read through Chairman's and CEO's address's. This stood out:-



Looks like a grim and extremely challenging / lengthy task ahead. Sad to see a company of such former standing on its knees like this and ostensibly trading at the behest of the ANZ.

I left the profit bit out cos I was being nice

Sad only because they they 'rested' on their laurels and made little effort to change as the world changed.

They still banking on this 'great brand' but don't just seem to get it - the brand in its current state is not relevant and beyond redemption sounds better than rooted (as the bank manager says)

[Beagle]

Beyond redemption much more P.C. mate, maybe not totally but they're certainly facing an enormous set of challenges.

[Baa_Baa]

Beyond redemption much more P.C. mate, maybe not totally but they're certainly facing an enormous set of challenges.

But do you think they're up to the challenge. This, after the next few days of inevitable SP slaughter, could be the buy of 2016!

[winner69]

But do you think they're up to the challenge. This, after the next few days of inevitable SP slaughter, could be the buy of 2016!

Many highly credentialed people have tried over the last few years but failed - a whole lot of new faces also with impeccable pedigrees are now having a go.

If beyond redemption because the brand itself is 'rooted' than I would say no they wont succeed

I would worry hearing Luke the MD say ' My wife Gaye and I have three kids, 19, 23 and 25. They all grew up wearing Pumpkin Patch clothes. We want to see our grandchildren, if we were to be so lucky, wearing Pumpkin Patch clothes too!"

That says it all - patch was iconic and the in thing a generation ago - but not anymore. I would say the grandchildren would only be wearing patch because grandma bought them (staff rates and assuming still in business). I would say the parents would be also be mortified and wait until grandma has gone before changing them in the new modern outfit of the day

That's how I see it as of today.

Still watching - it might have one last gasp of air to make a recovery before sinking for good - could even make heaps out of it,

[winner69]

Good old Mary at the AGM

"Each year at the AGM we come and listen to the same, same talk all the time," shareholder Mary Bell said during question time.

"How on earth do you think that you lot are going to change and do something for the shareholders? We've received nothing at all. Nothing."

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11551742

[Tomtom]

Many highly credentialed people have tried over the last few years but failed - a whole lot of new faces also with impeccable pedigrees are now having a go.
"When management with a reputation for brilliance tackles a business with a reputation for bad economics, it is usually the reputation of the business that remains intact."

[Beagle]

But do you think they're up to the challenge. This, after the next few days of inevitable SP slaughter, could be the buy of 2016!

This is how I see it.
ANZ has them under a very tight chocker hold with strict conditions and set milestones to be achieved throughout the term of the existing facility to December 2017 and for all intents and purposes they're calling all the shots. If those milestones are not met, (company admits they're challenging but achievable), you will be aware that there is the very real possibility that the ANZ will remove the life support.
Mall rents only go one way.
Legacy issues will dog them for years, (previous high leases they can't extricate themselves from)
Many people have tried and failed to turn this ship around before
Company has had the superb expertise of retail guru Rod Duke on the board but this hasn't helped to date, (this really worries me)
Proliferation of more and bigger malls won't help with traffic volume to existing site's
They're really up against it with the exchange rate and this is a fairly new thing which only started this year and I think the currency is lower for a lot longer
Relentless trend toward internet shopping
Widespread proliferation of cheaper brands e.g. Cotton On
Slower economic conditions will drive customers towards cheaper brands
Unproven new team working with one hand tied behind their back by ANZ, undercapitalised and losing market share
Loss of brand recognition amongst new generation mothers through lack of spend on advertising means it lends itself more toward grandparent's buying for nostalgic reasons

They face what amounts to a truly daunting set of challenges in my opinion. If you're going to have a go mate keep it small as I think its fair to say any investment in this company is highly speculative and the odds on meaningful value accretion to shareholders in the long run is slim.
Market cap is currently $20m...I don't think they're worth that.

[Crackity]

But do you think they're up to the challenge. This, after the next few days of inevitable SP slaughter, could be the buy of 2016!

I'd be happy to put them in my 2016 stock picking portfolio but not in my real portfolio.....

I think Rogs summation is accurate.

[winner69]

Asked whether he had access to enough capital to execute the plans Luke said '"The capital that we expect to generate that's available is about half what I need over that three to four year period."

That's how tight the rein is - held by ANZ

[winner69]

Luke also said ""I believe our customer and brand propositions remain relevant"

"I believe" is ok .....but do customers think the 'propositions' are relevant? I don't believe so

[percy]

Once the FIZZ is out of the bottle you can't get it back in.
Goner.!

[h2so4]

Yep. I'm afraid this baby has gone with the bath water.

[Beagle]

Asked whether he had access to enough capital to execute the plans Luke said '"The capital that we expect to generate that's available is about half what I need over that three to four year period."

That's how tight the rein is - held by ANZ

Hence the phrase I used "chocker hold". I know its naughty but I can't help speculating what happens if the result in March is below even ANZ's expectations which I suspect is highly likely. Do they straight to receivership or have a managed wind down where the ANZ totally takes over control of the chequebook ? Got 3 grandkids now, might be some good shopping opportunities in April. The management team will be under a great deal of stress for the foreseeable future. In many ways I admire them for at least giving it 110% and trying to right the ship in what is surely a "Titanic" type situation. The chances of a sucessful capital raise in this sort of environment ?...I can't see it happening.

[IAK]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11598216

The banks will be sweating on this one "Pumpkin Patch is blaming adverse currency movements and further declines in its international wholesale business as it warns profit for the first half of the year will be just a fifth of what it achieved a year earlier".

No hope.

[winner69]

EBITDA around $2m means a loss for H1 ......before the flagged extra write downs

Bank will see progress as debt down from more than $50 to $39m but heck that's still a lot

Bank manager probably still thinking 'its rooted'

[King1212]

At least good old Mary will be happy to see the company progress.



FORECAST: PPL: Pumpkin Patch Limited - Market update





Pumpkin Patch confirms that it will be releasing its half-year result on


Monday, 21st March 2016.





As previously signalled, financial results for 2016 will be significantly


below the previous year. There are a number of contributing factors to the


decline, the most significant being the negative impact on margin of adverse


currency movements and a further decline in the international wholesale


business; the same factors that affected the Company's second half trading in


2015.





Normalised EBITDA for the half-year is expected to be in the range of $1.5 -


$2 million (HY15: $9.2 million). Full-year guidance will be provided as part


of the half-year release.





The Company notes that facilities are in place with the ANZ Bank which


provide for the Company's working capital requirements through to December


2017. Net debt at 31 January 2016 was $39.6 million compared to $52.7 million


at 31 January 2015.





Solid progress has been made on executing the strategic initiatives outlined


at the Company's Annual Meeting, including addressing the issues impacting


the Company's international business. Further information on that progress


will be provided as part of the half-year release. This will include an


assessment of any additional provisioning required in relation to the planned


closure of loss making stores.





ENDS

[King1212]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11598216

The banks will be sweating on this one "Pumpkin Patch is blaming adverse currency movements and further declines in its international wholesale business as it warns profit for the first half of the year will be just a fifth of what it achieved a year earlier".

No hope.


It it is too early to say no hope. Anything can happen. Remember AIR in 2001? I don't hold PPL but would be nice to see NZ company recover. PPL sells good quality children cloths. Honestly, my wife bought mix of my children clothes and I could compare the quality of PPL clothing with warehouse or farmers.

Note. Don't have any more money to buy the shares.

[okay]

Sheesh you know things are getting desperate at the Patch when the staff gymnasium is going up for sale!:scared:

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11607973

From the article "Pumpkin Patch building under the hammer":

...The mezzanine office area, currently used as a staff gymnasium, is open plan with access via stairs from the northeastern corner of the building.

[winner69]

Sheesh you know things are getting desperate at the Patch when the staff gymnasium is going up for sale!:scared:

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11607973

From the article "Pumpkin Patch building under the hammer":

...The mezzanine office area, currently used as a staff gymnasium, is open plan with access via stairs from the northeastern corner of the building.

...and all that surplus stock

[winner69]

STUNNING RESULT

https://www.nzx.com/files/attachments/232300.pdf

Positive EBITDA before all the bad stuff

Debt. / stock down

Restructuring going to plan

Only negatives are currency headwinds, extremely competitive markets and signalling more writedowns.

[BlackPeter]

STUNNING RESULT

https://www.nzx.com/files/attachments/232300.pdf

Positive EBITDA before all the bad stuff

Debt. / stock down

Restructuring going to plan

Only negatives are currency headwinds, extremely competitive markets and signalling more writedowns.

Not nice to make fun of them ... think about the poor remaining share holders! PPL (all phases) is certainly an outstanding educational example for investors as well as traders!

Amazing - sounds like they have still supply chain issues. Wasn't that the key to starting their problems some years ago ... how hard can it be?

Share holders equity cut in half over the last 12 months ... If they continue on this path, than the company is worthless next year (some might argue, it is already now ...)

Sad.

[King1212]

Sinking ship alright...sad!

[Beagle]

$50m of stock at cost against a company selling approx. $100m retail for the half suggests they still face major issues with inadequate stock turn. Good retailers like HLG will turn most of their stock every different season.
At 8.8 cps market cap is circa $14m against official shareholders funds before any further potential provisioning of just under $20m suggests the market thinks further write-downs are more than likely.

The bank will be pleased with seeing their debt coming down.

Sales declining through online channels due to insufficient stock given their massive stock level is really very sad for shareholders as is the massive decline nearly 73% WOW !! in wholesale sales. They claim they previously appraised the market of that but I'll bet very few people would have thought wholesale sales would fall off the face of a cliff like that !!

Plenty of work for directors and management to do..hope they're sleeping okay at night as it must be incredibly stressful for all of them. Good luck to them.

Bank will hang in there for as long as they keep hitting their targets and that debt keeps steadily tracking down. Whether there's a viable business left after the bank have been satisfied regarding debt reduction is another matter.

[winner69]

Not nice to make fun of them ... think about the poor remaining share holders! PPL (all phases) is certainly an outstanding educational example for investors as well as traders!

Amazing - sounds like they have still supply chain issues. Wasn't that the key to starting their problems some years ago ... how hard can it be?

Share holders equity cut in half over the last 12 months ... If they continue on this path, than the company is worthless next year (some might argue, it is already now ...)

Sad.

Market thinks it was a (stunning) annoucement

[winner69]

Sharp fall in share price the last couple of days

NZX needs to issue a speeding ticket

Bit hard for patch to respond 'A few investors have finally realised we are rooted' isn't it

[Arbroath]

Sharp fall in share price the last couple of days

NZX needs to issue a speeding ticket

Bit hard for patch to respond 'A few investors have finally realised we are rooted' isn't it

Quite, why would anyone bother with this piece of s....!
Surely going to 0c soon or is the bank still hopeful of a miracle

[King1212]

Quite, why would anyone bother with this piece of s....!
Surely going to 0c soon or is the bank still hopeful of a miracle

U look a bit up set Arbroath...hope u okay...

[Beagle]

The prognosis is extremely grim IMHO.

[Arbroath]

U look a bit up set Arbroath...hope u okay...


Haha. No I've never owned PPL but have watched this slow moving train wreck with interest. It does annoy me how poorly this company has been managed though. Really poor.
Luke Bunt is capable but I'd say he is working for the Bank so it can recover its debt or most of it before the lights go out.

To to put it in perspective the Patch make Rakon look good.

[winner69]

Another update pre full year announcement. Using a PT phrase this is cut and paste of previous updates with different numbers
https://www.nzx.com/companies/PPL/announcements/287374

Didn't read that bad - things going to plan (sort off) and progress being made and that sort of stuff

But I couldn't help noticing

H2 ebitda (normalised of course) will be $1m and a bit - that's not much is it

Debt now $46m - but heck it was $39m last January - its gone up

Stock profile is a lot better they say - but at $49m its about the same as at the half

Having friendly discussions with the bank manger to see if things can be made a little more flexible ,,,,,one think the bank manager would still have to say 'its a bit rooted' - not much progress last 6 months

[Beagle]

Another update pre full year announcement. Using a PT phrase this is cut and paste of previous updates with different numbers
https://www.nzx.com/companies/PPL/announcements/287374

Didn't read that bad - things going to plan (sort off) and progress being made and that sort of stuff

But I couldn't help noticing

H2 ebitda (normalised of course) will be $1m and a bit - that's not much is it

Debt now $46m - but heck it was $39m last January - its gone up

Stock profile is a lot better they say - but at $49m its about the same as at the half

Having friendly discussions with the bank manger to see if things can be made a little more flexible ,,,,,one think the bank manager would still have to say 'its a bit rooted' - not much progress last 6 months

I think their bankers would be very displeased about debt going up by 18%. So they've go begging cap in hand asking for more time and leniency and a more accommodative facility...good luck with that.

[winner69]

Market just loving the guidance and reaffirmstion

Share price on fire ...big time ......10 cents

Top of the leader board

[winner69]

Jeez - almost doubled in price this afternoon (60% is almost double)

[Balance]

Jeez - almost doubled in price this afternoon (60% is almost double)

If there is EBITDA, always hope they can sell this howler of a dog to some sucker?

[winner69]

Results delayed 2 days

Bugger - 1+ 1 didn't = 3. .......or is it what the heck do we do with couple a million of old stock that we thought had already been sold.

[winner69]

I think it says - although not obvious from the headline numbers we are back on track

Morbid fascination of impending train wrecks means I need to have a closer look later

https://www.nzx.com/companies/PPL/announcements/290002

[macduffy]

From the commentary:

"The twelve months to 31 July 2016 has been a period of major change for Pumpkin Patch and represents the end of the first year of what has been signalled as a four year turnaround period. We believe, reflecting on the underlying improvements made during the year, that very good progress has been achieved although this is not immediately apparent from the headline numbers reported. "

Higher loss, negative operating cash flow, higher borrowings. A long way to go!

[JayRiggs]

Looking back 2 years ago, they said this in their FY2014 result.

The Company completed a strategic review of all areas of the business during FY14, and has embarked on a comprehensive 24-month transformation process. The main areas of focus in the early phases of the process are redefining the brand and product proposition, connecting to our customers in a more engaging manner, and development towards a truly omni-channel business model. Steve McKay, whose appointment as Chief Financial Officer was announced recently, will have the responsibility for driving the transformation process.
The full impact of the strategic transformation process will not start to be seen until early FY16. However the Company is expecting lower inventory levels and a continued disciplined approach to capital expenditure and other major spend items to be reflected in lower bank debt in the latter part of FY15.

We've just come to the end of the 24-month transformation process. I think it must be early FY2016 by now? I don't see much impact of this strategic transformation process... a bunch of stores closing down I suppose.
Now we are one year into the four year turnaround period.
Always seem to be in some kind of process or period eh????
I think 24 months wasn't enough time, so they've given themselves another 3 years to turn it around.

[Valuegrowth]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11719512

[winner69]

I often wonder if this is patch's real strategy

[winner69]

Middle East he future for patch

http://theregister.co.nz/news/2016/10/there-end-sight-pumpkin-patch

[Beagle]

“The potential for growth through these partnerships is significant but will take time to develop,” he says.

I don't think they have the luxury of time. ANZ have given them till October 20 to address the capital constraint issues facing the business.

Asset backing at balance date was less than 5 cps and that probably includes heaps of intangible assets. Assuming ongoing losses since then and a business model that appears to be systemically flawed surely the patch has had its time to find its own unique "patch" in the retail market already. Anyone holding gift vouchers would probably do themselves a favour to go and spend them before 20/10/2016.

[JayRiggs]

The end of the road?


Pumpkin Patch Limited (PPL) - Material company update 10:10am, 21 Oct 2016 | GENERAL Pumpkin Patch Limited (PPL) – Material company update
As detailed in PPL's Full Year Result Announcement 2016 (released to the market on 29 September 2016): "The business remains significantly over-leveraged and capital constrained. Banking facilities are in place that provide the working capital necessary to enable the company to trade and to fund a limited level of essential capital expenditure. Our ability to move forward from here is impacted by the lack of available capital for debt reduction and reinvestment. This represents a material risk to the ongoing viability of the business."
As highlighted in the financial results of PPL released with its Full Year Results Announcement, PPL had undertaken to its bank that options would be tabled and considered by 20 October 2016 to address and consider the company’s capital constraints. (Agreement was subsequently reached with the bank that this date would change to 31 October 2016.)
Since 29 September 2016, PPL has undertaken further work on these options. This further work coupled with discussions with the bank and certain key stakeholders has generated substantial uncertainty, which remains ongoing, regarding the company’s future in the context of its current financing arrangements. Shareholders should note that it is highly unlikely that there is any residual value in the company’s equity.
PPL expects that further work and discussions with relevant stakeholders will be completed in the next few days and that, when an outcome is clear, that will be announced to the market.
ENDS
Peter Schuyt
Chairman
Luke Bunt
Managing Director
21 October 2016


https://www.nzx.com/companies/PPL/announcements/291271

[trader_jackson]

Who do you think will go bankrupt first? Pumpkin Patch or Wynyard?

After this annoucement, it would seem Pumpkin Patch may win this unfortunate race...

[JeremyALD]

Whoever sold out at 12 cents after a recent bump in SP made a very wise decision I think.

[winner69]

Not often you hear a company actually saying this - Shareholders should note that it is highly unlikely that there is any residual value in the company’s equity.

Wonder what sort of haircut he ANZ is going to have - as their bank manager said in a round about way 'the patch is rooted'.

The slow motion train crash .....not crashed yet but jeez it's been fascinating (and painful) watching over the years

[winner69]

Spose the buyer of those $1286 worth of shares at 10.00 this morning might feel a little aggrieved by the tardiness in patch supplying the bad news a few minutes later

But then again obviously not a Sharetrader who knew about patch being rooted

[Xerof]

8396

Times up for this pumpkin

[Beagle]

Anyone silly enough to still be holding Pumpkin Patch gift vouchers would be well advised to use them this weekend.

[JayRiggs]

Anyone silly enough to still be holding Pumpkin Patch gift vouchers would be well advised to use them this weekend.
For sure. Good timing too. It's 40% off everything for Labour Weekend sale.

[Rep]

For sure. Good timing too. It's 40% off everything for Labour Weekend sale.
Or if you are PPL staff, take your holidays now...

[percy]

A lot may depend on timing.
I would think they would be scared to order stock for "next season."[Maybe legal reasons.ie ordering stock you know you can't pay for].
Trading now until the end of January would give them the opportunity to sell existing stock,and incoming stock they are already committed to.
As a retailer they have huge ongoing lease commitments.Usually receivership is the only way to sort these out.Failure to sort out leases will lead very quickly to liquidation.

[winner69]

A lot may depend on timing.
I would think they would be scared to order stock for "next season."[Maybe legal reasons.ie ordering stock you know you can't pay for].
Trading now until the end of January would give them the opportunity to sell existing stock,and incoming stock they are already committed to.
As a retailer they have huge ongoing lease commitments.Usually receivership is the only way to sort these out.Failure to sort out leases will lead very quickly to liquidation.

As at July 31 those lease commitments are $91m - $31m due in the next 12 months

More stores in Australia - wonder how accommodating Aus landlords are?

[percy]

As at July 31 those lease commitments are $91m - $31m due in the next 12 months

More stores in Australia - wonder how accommodating Aus landlords are?

I think we know the answer to that.!!..

[winner69]

I note that HQ in East Tamaki had 2 leased premises

They consolidated all HG staff into 1 site - and abandoned 433 East Tamaki Rd (everybody at 439) and Accounts said they were working on how much the abandoment of 433 lease that runs through to 2023 was going to cost them.

[winner69]

If the patch goes bankrupt not the first time the group has experienced this ignominy

They once put their US operations into Chapter 11 - mainly to wiggle out of lease commitments

[percy]

If the patch goes bankrupt not the first time the group has experienced this ignominy

They once put their US operations into Chapter 11 - mainly to wiggle out of lease commitments

The US leases were most probably held by a subsidary company,which did not have recourse of the parent company.
Maybe the same in Aussie,but I very much doubt it.The likes of Westfield, usually make sure they are at the head of the que,and would expect any subsidary would have to be guaranteed by the parent company. Aussie landlords are known to change the store's locks, which helps to focuss the tenants attention.! The tenant remains liable,but does not have access to their store.!..Yes,what we would call playing hard ball.!Very hard ball.!!
Staff committments can be reduced by making staff take holidays.From now to the end of January, PPL would find attracting casual staff very easy.Uni students,school kids etc.

[winner69]

I always thought that that guru manager Greg Muir was at the root of the long and gradual decline of patch - during his days as part of day to day management and finally as Chairman.

Chequered life that Greg - The Warehouse, Hanover Finance (should have gone to jail) and Pumpkin Patch .......hmmm

Keeping a low profile at Tru-Test now I believe

[percy]

I always thought that that guru manager Greg Muir was at the root of the long and gradual decline of patch - during his days as part of day to day management and finally as Chairman.

Chequered life that Greg - The Warehouse, Hanover Finance (should have gone to jail) and Pumpkin Patch .......hmmm

Keeping a low profile at Tru-Test now I believe

Staying very very low at Tru-Test.Supplying milk tanks etc to Dairy farmers is very challenging.[I no longer hold.]
No, I would not really blame him.
PPL was born as a very clever "fashion" clothing for children model..
They stole a march on every one.Expanded very quickly.
Then other manufacturers/designers/stores woke up.
So PPL ended up not having anything different.

[Beagle]

http://www.msn.com/en-nz/money/news/david-jones-buyout-could-save-pumpkin-patch-analyst/ar-AAjfrFA?li=AA4Zjm&ocid=spartandhp

[BlackPeter]

http://www.msn.com/en-nz/money/news/david-jones-buyout-could-save-pumpkin-patch-analyst/ar-AAjfrFA?li=AA4Zjm&ocid=spartandhp

Yes, the situation is desperate. Not sure though I'd expect anybody to buy the company as going concern ... because this would mean to step into all those dear and long lease contracts. In my view more likely they let it go bust and pick afterwards up whatever looks attractive.

Sad ... for some time it really looked like a nice little great company (but don't they all ;));

[Raz]

Yes, the situation is desperate. Not sure though I'd expect anybody to buy the company as going concern ... because this would mean to step into all those dear and long lease contracts. In my view more likely they let it go bust and pick afterwards up whatever looks attractive.

Sad ... for some time it really looked like a nice little great company (but don't they all ;));

problem is life cycle and barriers to entry were low to copy...anyone currently losing money have been stuck for sometime...will be interesting to see who picks up the few prime sights in their portfolio...

[beetills]

Wife got an email this morning from PUMPKIN PATCH reminding her that 40% off everthing sale ends today.
Be great if shareholders only take a 40% reduction in value of their shares

[Beagle]

Yes, the situation is desperate. Not sure though I'd expect anybody to buy the company as going concern ... because this would mean to step into all those dear and long lease contracts. In my view more likely they let it go bust and pick afterwards up whatever looks attractive.

Sad ... for some time it really looked like a nice little great company (but don't they all ;));

Yes I think if a bookie were giving odds, receivership would be the red hot favourite. The writing has been clearly imprinted on the wall for quite some time. For the directors to come out with the most recent annual result of a loss of $15m and state this is the first year of a four year turnaround,...after two years ago saying that was the first of a two year turnaround... well let's just say they took quite a degree of creative licence with this year's directors report.

[levin123]

Staying very very low at Tru-Test.Supplying milk tanks etc to Dairy farmers is very challenging.[I no longer hold.]
No, I would not really blame him.
PPL was born as a very clever "fashion" clothing for children model..
They stole a march on every one.Expanded very quickly.
Then other manufacturers/designers/stores woke up.
So PPL ended up not having anything different.

If i remember correctly, PPL were a successful mail order business then went brick and mortar, enjoyed a successful run until competitors woke up as you say, but then completely and utterly failed to plan for or capitalize on the rise of online shopping. In a bid to compete on price with all the overheads their competitors didnt have, made cheaper, less quality clothing, removing the final USP the business had

[BeeBop]

a few years ago I was deciding between PPL and FPA. after visiting the PPL stores here in the Middle East it was obvious the business was not going to do well. Over crowded stores with minimal staff and zero "flare"...close by was GYmboree, sargeant major and mAny other really nice stylish clothing stores for children that were well laid out with good sales staff. It looked like PPL had expanded and then washed their hands...little Nz needs to get out and physically support the brand. Luckily my FPA shares purchased at 37.5 cents were a much better buy at the time!

[Valuegrowth]

Its business deteriorated mainly due to weak global economy then. In my opinion unfortunately they expanded business at the wrong time. In addition, we find lot of competition in the clothing industry and fashion industry. Even some big giants in the industry became bankrupt during period of global economic crisis. There are low cost operators in the industry as well. Those companies operating business in clothing and fashion industry should monitor market trend continuously while maintaining better cost and risk management systems. In addition, any company should be able to face competitors strongly by maintaining competitive edge while keeping their loyal customers.

I believe still it can become a turnaround company if they come with a new business model while addressing issues that they have and preventing such issues in the future. If I see any turnaround situation I would like to consider buying some Pumpkin shares.

[stoploss]

Its business deteriorated mainly due to weak global economy then. In my opinion unfortunately they expanded business at the wrong time. In addition, we find lot of competition in the clothing industry and fashion industry. Even some big giants in the industry became bankrupt during period of global economic crisis. There are low cost operators in the industry as well. Those companies operating business in clothing and fashion industry should monitor market trend continuously while maintaining better cost and risk management systems. In addition, any company should be able to face competitors strongly by maintaining competitive edge while keeping their loyal customers.

I believe still it can become a turnaround company if they come with a new business model while addressing issues that they have and preventing such issues in the future. If I see any turnaround situation I would like to consider buying some Pumpkin shares.

Call the bank , think you can have the lot !!!!!!!

[Valuegrowth]

Thank you stopless
Call the bank , think you can have the lot !!!!!!!

[winner69]

Who do you think will go bankrupt first? Pumpkin Patch or Wynyard?

After this annoucement, it would seem Pumpkin Patch may win this unfortunate race...

One race patch didn't win

[BlackPeter]

...

I believe still it can become a turnaround company if they come with a new business model while addressing issues that they have and preventing such issues in the future. If I see any turnaround situation I would like to consider buying some Pumpkin shares.

Not sure I share your optimism. They discovered decades ago a market niche in NZ - and thought that they can extrapolate this niche to the rest of the world without any marketing. Didn't work.

But their current problems are

1) an inept purchasing department and supply chain and merchandise which looks sad and feels cheap. Gone are the days were they sold smart looking children's clothes which one would like your grand children to wear. If you offer lots of stuff nobody wants, than even the best discounts can't help ...

2) too much brick and mortar - and that in the wrong places;

Discl:
Went yesterday with a well filled wallet into town to buy Christmas presents for the family. Started in the local Pumpkin Patch store (with lots of parking outside - despite the surrounding malls all being quite packed). Left Pumpkin Patch disappointed - but with an untouched wallet. Found great stuff at Kathmandu ... left my money there ...

[Beagle]

We had every intention of buying our three grandchildren an outfit each...actually my wife would be the one doing the choosing but we were too busy and we decided its only a matter of time before the inevitable receivership sale.

I'll wager a beer that PPL will not emerge from its present trading halt if anyone wants to take the other side of that wager please let me know.

[Rep]

If i remember correctly, PPL were a successful mail order business then went brick and mortar, enjoyed a successful run until competitors woke up as you say, but then completely and utterly failed to plan for or capitalize on the rise of online shopping. In a bid to compete on price with all the overheads their competitors didnt have, made cheaper, less quality clothing, removing the final USP the business had

Postie Plus had been a reasonably successful Mail Order business (hence Postie) based out of Greymouth but at the threshold of the internet shopping decided to get into bricks and mortar, coupled with a badly managed and disaster of a major logistics and supply chain relocation to a 3PL based in Auckland it simply couldn't fund working capital and ultimately was sold to Pepkor.

Pumpkin Patch also started in mail order in 1991 but went into bricks and mortar within 3-4 years of inception. I have always been stunned that by the time the GFC arrived 2008 that they had bloated to 400 staff in their head office!

"plus ça change, plus c'est la même chose"

http://www.stuff.co.nz/business/657347/Pumpkin-Patch-announces-redundancies


Chief financial officer Matthew Washington said that the retail world was now difficult, and most businesses were looking to refine themselves.

"This is us reacting to a slower retail environment."

There were no more job cuts or store closures planned at this stage.

Last month Pumpkin Patch posted a 27.5 percent decline in full year net profit because of higher interest charges, higher quota costs and a difficult United States retail environment.

Pumpkin Patch was set up in 1991 with a mail order catalogue and one shop. It has since expanded to the UK and USA and now sells through about 250 outlets around the world.

It has 4000 employees worldwide.

[trader_jackson]

https://www.nzx.com/companies/PPL/announcements/291495

well... 2nd once sharemarket darling to hit the wall in 1 week...

[winner69]

https://www.nzx.com/companies/PPL/announcements/291495

well... 2nd once sharemarket darling to hit the wall in 1 week...

Directors believers to the end

"The Board believes that the company's executive team has made significant progress last year in the four-year turnaround programme in a challenging retail market. That progress has continued in the first quarter of this financial year."

Well the bank guy did say 'patch is rooted' - now hw has to tell his bosses how the hair cut is.

[King1212]

next one will be IQE...

[carrom74]

If KordaMentha goes public with an IPO then I would the first to jump in(looking at their "Business Potential"!!)

[Beagle]

I think their bankers would be very displeased about debt going up by 18%. So they've go begging cap in hand asking for more time and leniency and a more accommodative facility...good luck with that.

From 18 August. I don't think the board got it that they had to reduce stock and increase stock turn. As Winner quite correctly noted some time back PPL's stock turn simply doesn't cut the mustard compared to well run clothing retailers like HLG. For the board to express veiled disappointment that nobody would back them for another three years of their so called four year turnaround plan after the previous two year two around plan failed so miserably shows a level of commercial naivety right up there with Wynyard directors.

[winner69]

From 18 August. I don't think the board got it that they had to reduce stock and increase stock turn. As Winner quite correctly noted some time back PPL's stock turn simply doesn't cut the mustard compared to well run clothing retailers like HLG. For the board to express veiled disappointment that nobody would back them for another three years of their so called four year turnaround plan after the previous two year two around plan failed so miserably shows a level of commercial naivety right up there with Wynyard directors.

Roger, their stock turns were better than Kathmandu's

Problem being I think 30% of the stock turned very fast - just that the other 70% was crap not even dithering grandmas fancied .....or something like that

[IAK]

next one will be IQE...

Followed by Veritas and Dreamworld isn't looking to good either.

[Beagle]

Roger, their stock turns were better than Kathmandu's

Problem being I think 30% of the stock turned very fast - just that the other 70% was crap not even dithering grandmas fancied .....or something like that

Yes you're probably right mate. Like many others I noticed the decline in the quality of their product offer quite some time ago after they started sourcing product from cheaper suppliers in response to a stronger $Kiwi.

Moving downmarket was the beginning of the end for them in my opinion...plenty of players at the bottom end of the kids wear market.

[Beagle]

Pumpkin Patch workers get shafted ?

http://www.radionz.co.nz/national/programmes/morningreport/audio/201821467/no-redundancy-payouts-for-pumpkin-patch-workers-union

[sb9]

Pumpkin Patch workers get shafted ?

http://www.radionz.co.nz/national/programmes/morningreport/audio/201821467/no-redundancy-payouts-for-pumpkin-patch-workers-union

And looks like people with gift cards too, heard that those who happen to hold patch gift cards need to spend twice the amount in cash in order to redeem gift card value, ludicrous!!!

[winner69]

Pumpkin Patch workers get shafted ?

http://www.radionz.co.nz/national/programmes/morningreport/audio/201821467/no-redundancy-payouts-for-pumpkin-patch-workers-union

If that happens the likes of Luke Bunt should be completely ashamed of themselves ....and tarred and feathered and dragged up Queen St

Just highlights what are sad world we live where corporates see staff as just another commoditised input in an endeavour to make shareholders rich (in most cases anyway)

[Beagle]

I couldn't agree more mate but to be honest I struggle to see this subsidiary company with no assets thing being the employer, as standing up to thorough legal scrutiny. You can't employ people in a shell company with no assets and no way of meeting its current liabilities, (accrued holiday and sick pay), that would be a breech of the companies act in terms of trading a company while insolvent so whoever the directors are of that subsidiary company, they would be personally liable in my opinion for trading while insolvent so I think if one of them is Luke Bunt or he is responsible for instigating this contrived scheme of arrangement to defeat preferential creditors so he'd better be dusting off his professional indemnity insurance policies and talking to his lawyers.

Sb9 - Gift voucher thing, can't say I am surprised and its entirely self serving of the receivers for sure. Honouring gift vouchers is one of the fundamental building blocks to try and retain goodwill. I have warned people on here and on NBR twice to spend gift vouchers ungently before this happened so I did my bit to warn people.

I will tell my wife to wait for the 70% off everything receivers sale...the way management and receivers are conducting themselves they don't deserve our business until such time as they're ready to massacre the prices.

[stoploss]

I couldn't agree more mate but to be honest I struggle to see this subsidiary company with no assets thing being the employer, as standing up to thorough legal scrutiny. You can't employ people in a shell company with no assets and no way of meeting its current liabilities, (accrued holiday and sick pay), that would be a breech of the companies act in terms of trading a company while insolvent so whoever the directors are of that subsidiary company, they would be personally liable in my opinion for trading while insolvent so I think if one of them is Luke Bunt or he is responsible for instigating this contrived scheme of arrangement to defeat preferential creditors so he'd better be dusting off his professional indemnity insurance policies and talking to his lawyers.

Sb9 - Gift voucher thing, can't say I am surprised and its entirely self serving of the receivers for sure. Honouring gift vouchers is one of the fundamental building blocks to try and retain goodwill. I have warned people on here and on NBR twice to spend gift vouchers ungently before this happened so I did my bit to warn people.

I will tell my wife to wait for the 70% off everything receivers sale...the way management and receivers are conducting themselves they don't deserve our business until such time as they're ready to massacre the prices.

Roger I think your wife may be better off looking for clothes at H&M & Zara - might be more expensive but at least they will fit :)

[Beagle]

http://www.msn.com/en-nz/money/news/first-shops-closed-jobs-axed-at-pumpkin-patch/ar-AAjuSHt?li=AA4Zjm&ocid=spartandhp

Good to see that the union's lawyers appear to have called PPL's receivers out on this contrived shell company corporate employment structure and staff are in line for redundancy pay within the usual statutory limits.

[Rep]

Pumpkin Patch workers get shafted ?

http://www.radionz.co.nz/national/programmes/morningreport/audio/201821467/no-redundancy-payouts-for-pumpkin-patch-workers-union

I think I have said this previously but whilst some holiday pay gets priority it's not a bank for employees.

Personally I think gift vouchers are a mug's game - you have all the credit risk and lots of retailers rely on a portion never being redeemed.

In some respects, Consumer NZ did a disservice to the public by pressuring retailers to get rid of expiry dates on vouchers - it removes the call to action to use them and hence a naive public think they are as good as money, which they aren't and as an unsecured creditor way down the back of the queue in the event it all goes to custard.

We've had Pumpkin Patch vouchers for the boy but we've essentially used them as soon as we could as we have never thought they were investment grade.

Moral of the story: if you get a voucher, redeem it as soon as possible. Must do the same with my Amex rewards sometime as well.

[winner69]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11737770

Paying large divies instead of reducing debt didn't work

Interesting how much interests related to Prendergast got paid for shopfittings

[winner69]

I sometimes wondered if patch ever found out what was happening in the world.

Wonder if they knew this
http://linkis.com/www.roymorgan.com/fi/SZuvF

Industry related data is interesting - carpet/flooring stuff is intriguing .....and not that bright for CAV

[Beagle]

Receivers cull Australian stores https://www.nbr.co.nz/article/pumpkin-patch-receivers-close-27-stores-australia-laying-145-people-b-196354

[winner69]

o it was well and truly rooted after all

http://www.stuff.co.nz/business/industries/86735891/pumpkin-patch-to-be-wound-up-after-no-buyer-found

[Balance]

o it was well and truly rooted after all

http://www.stuff.co.nz/business/industries/86735891/pumpkin-patch-to-be-wound-up-after-no-buyer-found

Real shame.

Again, management and directors were overtly ambitious - took on the world by expanding into UK and US and lost.

Would have been a very nice and profitable Australasian brand with a great brand and name for quality, style and kiddies' clothings.

[Rep]

There's potentially a market for the Brand but not with the baggage of the leases, staff and other legacies.

[Beagle]

A bit sad but this train wreck has been a long time in the making. So...there will be a pre-Christmas sale, and extended boxing day sale, a new year's sale, and end of summer season sale in January and a genuine receivership sale for most of February. All donations towards the poor staff's holiday and redundancy pay will be gratefully received. Discount level's will gradually ramp right up as the less and less desirable stock is all that's left.

[JayRiggs]

There were a few willing parties interested in buying Pumpkin Patch last year, but the board were stubborn and said it was in the best interest of shareholders to keep going with their dumb turnaround program, which has led to this.

I gotta say I'm stubborn too, because I held onto my PPL since 2011 and now they're worthless.
With the benefit of hindsight, of course I should have sold. Even at 10c, would have salvaged something.
Percy advised me not to average down, but I didn't listen and averaged down anyway. Sorry percy!
Big big lesson learnt, not to buy declining craptastic loss making businesses in very clear downtrends.

Something else I want to get off my chest. In September 2011, the same day the Rugby World Cup 2011 started, I went into the Ponsonby branch intending to buy a hat for my niece. I looked around for a good 6-7mins, not sure which hat to buy. None of the staff approached me. They were walking around putting clothes up and hanging around the counter. They never acknowledged me, so I walked out.

[Tomtom]

...I went into the Ponsonby branch intending to buy a hat for my niece. I looked around for a good 6-7mins, not sure which hat to buy. None of the staff approached me. They were walking around putting clothes up and hanging around the counter. They never acknowledged me, so I walked out. Is it hard to believe people earning retail wages could care so little about their highly disposable jobs at a failing company?

Most people will tell you they love great service and would pay extra but I realised a long time ago that, on the whole, I wasn't actually willing to pay for service and it appears I wasn't alone as more people went to Amazon, Asos, Aliexpress etc. but where less willing to walk into a shop. In fact I'd now often say if your business strategy relies on service your in a losing game in the long term. Time to move on in retail models and embrace the machines, global shipping, automation etc.

[winner69]

Bastards .....and not just KordMentha guys

http://www.stuff.co.nz/business/industries/86765676/pumpkin-patch-first-union-to-file-legal-proceedings-for-workers-entitlements

[basilcat]

Went to a PP store in Houston in about 2007. Had never heard of them and thought they were an American brand. I could not believe how anyone could try to sell such a lot of rubbish vv European brands such as Catimini in an upmarket shopping mall. Carried on buying the grandchildren Catimini. Turns out to be a typical Auckland outfit with delusions of grandeur. Must have been a few business class junkets to the USA though. Obviously no market research and no idea of the standards required to sell to wealthy markets. Great fun blowing someone else's money. The top quailty clothing brands do not go bankrupt. The would be if they could be types do.

[winner69]

BIG discounts

Betcha not everything goes

http://www.pumpkinpatch.co.nz/?gclid=CMCVkdr56tACFQt8vQod9xAIcw

Big discount on patch shares - 100%

[Beagle]

BIG discounts

Betcha not everything goes

http://www.pumpkinpatch.co.nz/?gclid=CMCVkdr56tACFQt8vQod9xAIcw

Big discount on patch shares - 100%


LOL you are a naughty dog !

30-50% doesn't cut the mustard for me. Waiting for the 70% off everything sale.

[Balance]

[/B]

LOL you are a naughty dog !

30-50% doesn't cut the mustard for me. Waiting for the 70% off everything sale.

Was at Dressmart Onehunga last week. Had a nosey at the PP store there - only remnants left in bargain bins.

Rather sad looking at the remnant of this once iconic child wear NZ company.

[blackcap]

[/B]

LOL you are a naughty dog !

30-50% doesn't cut the mustard for me. Waiting for the 70% off everything sale.

I just saw an ad for 40-60% off at Pumpkin Patch... getting closer Roger :)

[BlackPeter]

I just saw an ad for 40-60% off at Pumpkin Patch... getting closer Roger :)

They had (at least in Christchurch) already six weeks ago hardly anything left which would tempt us to buy at any price. I don't really think the discounts matter anymore, though they might save themselves the disposal fee ...

[Beagle]

They had (at least in Christchurch) already six weeks ago hardly anything left which would tempt us to buy at any price. I don't really think the discounts matter anymore, though they might save themselves the disposal fee ...

Probably have a gander a couple of days after Boxing day when the crowds have thinned out a bit from the local mall. Won't surprise me if we're basically in a "Dick Smith Batteries" type situation with just the rubbish left.

[macduffy]

Probably have a gander a couple of days after Boxing day when the crowds have thinned out a bit from the local mall. Won't surprise me if we're basically in a "Dick Smith Batteries" type situation with just the rubbish left.

I don't think I'll bother even then. Their stuff doesn't fit me anymore.

;)

[JAX]

Probably have a gander a couple of days after Boxing day when the crowds have thinned out a bit from the local mall. Won't surprise me if we're basically in a "Dick Smith Batteries" type situation with just the rubbish left.

Could be, but was in St Lukes so thought I would have a look as a first (and probably last) time with the kids. Even at the 60% off nothing really jumped off the shelf. The shelves as of the weekend were still fully stocked and being restocked. So like nothing happened really. I think they have a lot of stock built up to get through, so wouldn't rush.

[Beagle]

https://www.nbr.co.nz/article/pumpkin-patch-owes-595m-anz-%E2%80%93-receivers-kordamentha-b-198310

Looks like the poor ANZ are set for a good beating with this collapse. Up from $46m in July , that's nearly another $14m ! Feeling sorry for ANZ's customers as they'll be the ones ultimately wearing this loss with the extra fees and rates ANZ will sting them for !

[iceman]

PPL sold by receivers for a rumoured A$2M. About 1.3c per share I think. A sad end but hopefully the new owners can do something exciting with the brand

[Ogg]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11823842

Things aren't over for childrens' retailer Pumpkin Patch, with a buyer found and plans to relaunch.

$10 bucks says it relists before 2021.

[Beagle]

That is false

Here's the ANZ again putting themselves ahead of long serving people and admitting they're looking at losing tens of millions of dollars. http://www.stuff.co.nz/business/90755424/pumpkin-patch-staff-in-stalemate-with-anz-over-redundancy-pay

Where's you evidence backing up your claim the NBR article is false ?

[Beagle]

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11823842

Things aren't over for childrens' retailer Pumpkin Patch, with a buyer found and plans to relaunch.

$10 bucks says it relists before 2021.

Agreed and anyone that subscribes to the IPO needs to see a psychologist !

[Beagle]

It must be time for a Tui.

[Investor]

It must be time for a Tui.

Indeed, indeed.

[iceman]

https://www.google.co.nz/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjtzKO2pe7SAhUJu7wKHfFaDCkQjRwIBw&url=http%3A%2F%2Fwww.buzzfeed.com%2Fcopyranter%2Ft he-best-of-the-tasteless-tuis-billboards&psig=AFQjCNFPQ9ByUS5NkSexa8YETw4zeTasJw&ust=1490415298080652

[Beagle]

https://www.google.co.nz/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjtzKO2pe7SAhUJu7wKHfFaDCkQjRwIBw&url=http%3A%2F%2Fwww.buzzfeed.com%2Fcopyranter%2Ft he-best-of-the-tasteless-tuis-billboards&psig=AFQjCNFPQ9ByUS5NkSexa8YETw4zeTasJw&ust=1490415298080652

Good one mate...some of them are right up there with "Banks don't reassess business loan rates after losing hundreds of millions in that sector".

[winner69]

I feel sorry for those employees still waiting for their entitlements - if they ever get them

They were totally screwed by the company (esp having such a company structure as they did)

Luke Bunt was in charge at the end - he's gone on to my bad director list

Oops, he's on several Boards of interesting companies

Maybe he good for shareholders after all - but in patch's case most seem to ahve missed out badly

[Balance]

https://www.nzx.com/files/attachments/255988.pdf

Price sensitive?

One sick joke by the company and the liquidators.

[Sideshow Bob]

New owners to relaunch

https://www.odt.co.nz/business/pumpkin-patch-brand-set-relaunch

[BlackPeter]

New owners to relaunch

https://www.odt.co.nz/business/pumpkin-patch-brand-set-relaunch

Interesting timing to launch another retail business ...

[Beagle]

Interesting timing to launch another retail business ...

I "can't wait" for this iconic brand to list again with another IPO. Where do I sign for that lol

[peat]

I "can't wait" for this iconic brand to list again with another IPO. Where do I sign for that lol

and yet it did have quite a lot of brand pull, which could be maximised to potentially make a good business. all in the detail and the price point (of the product).

(Certainly not saying I'm queuing up - either) I'm not really into IPO's for the sake of it and it always really surprises me how many people are. History is the biggest view we have on the quality of a company. without it we are blind.

[Beagle]

and yet it did have quite a lot of brand pull, which could be maximised to potentially make a good business. all in the detail and the price point (of the product).

(Certainly not saying I'm queuing up - either) I'm not really into IPO's for the sake of it and it always really surprises me how many people are. History is the biggest view we have on the quality of a company. without it we are blind.

I think the original brand pull was when they were making high quality kids clothes. Always a small market for grandparents and wealthy parents who want to treat their youngsters or simply have them looking really stylish. Part of the many ways they went wrong was going down-market sourcing cheaper clothes with poor quality fabrics. The market is already over supplied with cheap kids clothing. Done right with a very small retail footprint in certain higher end shopping malls and with a very good digital platform there is a market there, no question but I think its a small one...but who knows, history might repeat and they might grow nicely and list again...stranger things have happened before lol

[minimoke]

Given Amazons potential tsunami tidal wave of destruction looming on the horizon it would be a very brave company to be investing in more retail bricks and mortar real estate. Too brave for me.

[Beagle]

Given Amazons potential tsunami tidal wave of destruction looming on the horizon it would be a very brave company to be investing in more retail bricks and mortar real estate. Too brave for me.

Agreed, there is serious risk involved. Far better off with a proven performer for over 140 years like HLG :)

[Everwood]

Ezibuy is now selling the clothing range online https://www.ezibuy.com/shop/nz/Pumpkin-Patch I just got an email from Ezibuy about the relaunch of the brand.