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Postie Plus administrator finds foreign buyer

The administrators of Postie Plus [NZX: PPG] has found a foreign buyer for the retail chain's assets and business, a day after their appointment.

PwC's David Bridgman and Colin McCloy reached a conditional agreement to sell Postie Plus as a going concern to an overseas-based retailer which doesn't have a presence in New Zealand. The buyer is conducting due diligence over the next three weeks, with the sale expected to be completed within the next four weeks, they said in a statement. A PwC spokeswoman declined to name the prospective buyer.

Postie Plus will continue trading while working through the sale process, which Bridgman and McCloy said is in "the best interests of the company's stakeholders, including its secured creditors, trade suppliers and other creditors, landlords as well as the company's more than 600 staff."

The retailer appointed the administrators yesterday after unsuccessful attempts to recapitalise the business, including an attempt to find a buyer or a new cornerstone shareholder.

In April, Postie Plus said it was in breach of its lending covenants and expected to remain so “for the foreseeable future,” meaning its bank funding is repayable on demand, though the arrangements it had in place with its bank were sufficient to meet the company’s forecast funding requirements up to July 30.

The company was hit by supply chain disruptions in the summer of 2012 and 2013 after outsourcing its distribution centre to a third party, while shifting its headquarters to Auckland, where it anticipated growth. After receiving legal advice, Postie Plus said it intends to “vigorously” pursue a damages claim.

Postie Plus shares last traded at 7.3 cents, prior to being halted last Thursday pending an announcement, and the stock market suspended it yesterday after the administrator appointment. The shares are the second-worst performer on the NZX All Index over the past year, having slumped 56 percent.


Comments and questions

Must be a party wanting the physical retail network? Possibly a large Aussie chain is the most likely to be able to move quickly? (unless they have been circling for a while). Any guesses anyone?


More Primark than TopShop

TopShop is premium rubbish in nice locations, Primark is crap in crap locations - its all marketing...

Unlikely to be Topshop. Been in Takapuna since 2010, and rights-owner Top Retail announced plans for expansion last month.

Chinese? comes to NZ?

Curious what buying for - not IT systems, management, stock etc. Must be some sweet leases / zoning in there. Sands of 6 months time will answer

I believe it's called a prepack,,,

Spot on!
NZ needs to overhaul its liquidation/receivership laws to make this process quicker and easier...

Top Shop? They can continue to run Postie Plus and slowly convert suitable stores to Top Shops.

The Irony of this failure is that it was essentially an internet business before the internet was even dreamed up. Why they decided to roll our physical stores rather than embrace the internet has to be the worst retail decision ever.

I cant see it being Topshop - I dont think they would want that many stores that quickly. Will be interesting to see who it is.

I'm sure it will be TopShop - they were in the Herald a couple of weeks ago as being on the lookout for stores in good locations.
Buying the Postie stores given their desperate situation would be ideal for them. They can get the chain for a bargain, cherry pick the best store locations and sell the others off to whoever will take them up. The administrators are there to get the best deal they can as quickly as possible so it seems to all line up..........