![]() ![]() "If the business does sell, the new buyer will do a lot of restructuring and there will likely be some store closures and some staff redundancy," he said. Grant Williamson, director of sharebrokers Hamilton Hindin Greene, said job losses and store closures were likely. The Warehouse today ruled out buying the beleaguered business. The administrators said the sale was in the best interests of the company's stakeholders, trade suppliers, creditors, landlords and staff. Postie Plus' 82 stores would continue trading through the sale process. ![]() The sale could be finalised within four weeks if conditions were met, they said. The PwC administrators said today that the would-be buyer would conduct due diligence over the next three weeks. Postie Plus was placed in voluntary administration yesterday, putting the jobs of 640 retail and office employees at risk. The lease was up and the company had not yet found a suitable new location.įour staff members took up redundancy, despite being offered jobs within the existing store network, the company said.An international retail group has signed a conditional agreement to buy troubled national clothing retailer Postie Plus. Postie recently closed its the Porirua store near Wellington but said this was a one-off event. Murray's response was that Postie already had a low, single digit, share of the market, and had ground to make up. "They're key players, good players.so we actually want to be compared to those players." "The Warehouse has tilted toward a stronger fashion focus and Farmers is leveraging popular brands to drive their fashion category, which still includes value ranges." It was also a crowded end of the market, with affordable, fast fashion from Cotton On, and essentials and basics from KMart and The Warehouse. His only worry was that the '"race to the bottom" might not be as sustainable in New Zealand as it had been in larger markets such as Great Britain, where stores like Primark had been a runaway success. "Unless you're edgy and have an aspirational brand, you'll be in a no-mans land once the overseas chains hit our shores." "Really, the next stage is using that platform to actually start moving Postie to where we want it to be."Ĭhris Wilkinson, managing director of retail consultancy First Retail Group, said moving to more affordable products was a strategic move as this was where the volume and potential margin was. Pepkor had made a "not inconsiderable" investment, revamping prices and ranges, installing a new IT system, staff awards, changing distribution and putting in new management. "It's fair to say it's been a pretty substantial turnaround." "Clearly our margins on each individual item will be lower but we really want Kiwis to come back into Postie, rediscover it."Īfter coming out of voluntary administration, Postie managed to retain 65 of its 82 stores and keep on more than 500 staff. Murray said the chain was not fully back on its feet but the foundations had been laid. "We know the typical Kiwi family only has $30 a week to spend on clothing so if you want to be accessible for all Kiwi families, you can't price much above that. Prices would be set by what the market could afford rather than margins. ![]() Pepkor says the turnaround of the Postie chain is not yet complete. ![]()
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