ANZ unlikely to see remaining $20m from Pumpkin Patch

Pumpkin Patch was pushed into receivership by lender ANZ in 2016.

ANZ Bank is unlikely to see all the millions it lent failed childrenswear company Pumpkin Patch, and unsecured creditors probably won’t get a cent.

The bank was owed $59.5 million when Pumpkin Patch went into receivership in October 2016.

The latest six-monthly report from receivers Brendon Gibson and Neale Jackson of KordaMentha shows at the end of April, ANZ had been paid $29.4m.

The receivers say given all the group’s assets have been realised, there will be a shortfall to the bank, which is still owed $19.8m (including accrued interest).

Pumpkin Patch’s preferential creditors have been paid $2.9m, including $2.7m owed to employees and $154,000 owed to Inland Revenue.

The company’s largest trading subsidiary, Pumpkin Patch Originals, has paid preferential creditors $1.9m, including $1.46m to employees, $438,000 to NZ Customs, and $48,000 for PAYE tax and other deductions.

Receivers say all preferential claims have now been paid but there are no funds to pay unsecured creditors. The liquidator is still assessing the unsecured claims.

The 27-year-old retailer listed in 2004 and enjoyed years of success before competitive pressures got the better of it amid uncertain global economics.

It endured a rough few years after its ambitious overseas expansion misfired, leaving a huge debt burden.

This wasn’t helped by the fact it paid dividends that were 97% of the company’s net profit over the expansion period, with a lack of reinvestment in the core business.

Pumpkin Patch’s own research showed its products were not meeting customer needs, with falling quality and design, high price perception, and product range issues.

The retailer also had poor merchandise planning and inventory management but didn’t have the necessary capital ($8 million) to invest.

ANZ pushed it into receivership after options, including a capital raise, equity injection, equity or asset sale or acquisition of the group, failed to pan out.

The company's brand and intellectual property were sold to Australian online retailer Catch Group in March last year.


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21 Comments & Questions

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Pray, tell: What did the receivers pay themselves?

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About $48,000, from what I gather from their report.

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I'll bet they made sure they got it too.

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If anyone ever wondered where all the money goes from these receivership's, here is a rough copy of just one that I am involved with from receiver statement dated 29th Nov- 28th May 2017
bank charges 844
consultancy fees 19.437
investors-tracing 15.015
legal costs 200.383
receivers remuneration 134.724
software/IT related costs 78.900
unrecoverable gst 164.233
other distributions 10.037
investor distributions 2.000.000
distribution funds held in trust 198.974
litigation funder 4.726.675
costs unfunded 2012-2016 legal 764.115
costs unfunded 2012-2016 receivers 307.464
So there you have it as to where all the money is going, and how many have their hands out clipping the ticket so to speak.
From memory I received a little over $300 from my original $30.000 investment at that time.

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And because you invested poorly, you think the Receivers should work for free ?

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No I don't, and you completely miss the point.

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To all the people that don't understand why I wrote this, and need it explained to them. I wrote it to show just where all the money is going, and how the original investors actually get very little return after all these so called admin costs are deducted from whatever is left over.
Some just need that explained to them.

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Don't be discouraged too much Ivan. But, I am afraid your time taken to try and explain basic facts to the likes of 'anonymous" would be better spent teaching a cow to ride a bike.
You should know the "nick" "anonymous" refers more to the posters intelligence than it does to the posters identity.

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Oh no I've moved on from this, and although I took a hit to my bottom line, is just makes me a little mad to see how the powers that be have total control over these receivership's. The original investors have absolutely no say whatsoever in anything. Even the out of court settlements that get awarded very little are decided by the receiver, that one judge commented on, that had full scale proceedings been taken out, a much higher amount would highly likely have been awarded.
The whole rotten mess has been a real eye opener.

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I hope the rest of your reporting is better than this!

The second receivers report for Ex PPOL limited shows just over $2mil in receivers fees for that period.

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Will we ever get a Government to derail the receivership gravy train? All that is needed is a regulation requiring an entity in receivership will have its whole or parts auctioned (no reserve) within 60 days.
I believe, "$2million in receiver fees" is corruption that is truly vomit inducing

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$48.000!?. On a take of the immortal quote from Linda Evangelista::
"We don't get out of bed for less than $48,000 a day".

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Hi Anon, I was referring to the latest six monthly period, in which $48,000 was paid.

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Sign hanging in my hubby's office.......

*If you owe the bank $50, that's your problem.
If you owe the back $50 million, that's their problem*

LOL!!

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The ANZ Treasurer has more pressing concerns than a little lax corporate lending by its NZ outpost I reckon.

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Just another glaring example of a Board out of its depth and poor management who missed the market

Not to forget an over priced product with next to no style in the designs

When will public companies wake up and see that all that happens is dead wood drifting to the next appointment thru the network

Well done !

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As usual management just move on with no accountability or responsibility.
Only in New Zealand.

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What was total shareholder & creditor haircut?

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The major shareholders made sure they did very well thank you. And then things turned to custard. They knew what the future beckoned. Criminals! Why can’t the receivers see that? The founders kept taking and taking. We all know who they were!

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Because this is NZ. In NZ the law goes after the drug dealers because there's millions in it for them. Going after some broke collapsed company on the other hand. No money to be had there.

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Founders could only keep taking and taking because others just gave and gave.

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