Richmond Postie store remains open
The Postie store in the Richmond Mall is still open despite the national clothing chain going into voluntary administration.
Postie Plus has appointed David Bridgman and Colin McCloy, of PwC, to sell the company's assets and pursue compensation for unspecified losses.
Postie Plus will be able to continue trading while in administration.
Richmond store and area manager Sue Beloe said nothing had changed. "We are carrying on doing our best customer service. I'm not worrying and I don't feel threatened."
The company's Nelson store in Bridge St closed in February and two of its seven staff are now at the Richmond store which has nine staff.
The union representing retail workers at the company is not surprised it has gone into voluntary administration.
Maxine Gay, retail secretary at First Union, said the last few years had been hard on Postie Plus which had struggled to deal with serious supply-chain issues.
Gay said the employees in the 82 Postie stores nationwide had been told they would remain in their roles and continue to work agreed hours unless otherwise advised.
Gay said the union had also been told by the administrator that a number of credible parties were interested in the business.
PwC said a creditors' meeting would be held in about a week. Colin McCloy, of PwC, said Postie "got to the point where the losses were building and building and the business was not sustainable", and they were now trying to sell the business. "We are talking to parties," he said.
An alternative strategy would be to restructure the business, McCloy said.
However, sharebrokers Hamilton Hindin Greene director Grant Williamson said there was a reasonable possibility that Postie Plus shareholders could lose everything following yesterday's announcement. He said it was not a surprise to see the company go into voluntary administration.
"The company has been putting in a lot of effort to try and recapitalise or even sell off more assets but obviously it hasn't happened," he said, adding the banks had probably given the directors no choice but to go into voluntary administration.
In April, Postie Plus said it was in talks with "a number of parties" about investing in the company, after it posted a $3.8 million half-year loss that was more than double the previous first-half loss of $1.8m.
However, it was unable to find a suitor to invest new capital or buy the business outright and the board had now decided it couldn't carry on its business.
The company also said yesterday that it had commissioned "expert legal advice as to its ability to recover compensation and has been advised that it has proper grounds to pursue a damages claim".
The Nelson Mail