WELLINGTON, June 4 (Reuters) - The administrators of troubled New Zealand clothing retailer Postie Plus Group Ltd said on Wednesday they have found a likely buyer for the company.
The struggling company called in administrators from PricewaterhouseCoopers on Tuesday after its bank refused to back the retail chain which has been racking up losses and losing market share for the past two years.
The company’s 82 shops were open for business as usual, but Postie Plus shares have been suspended from trading on the NZ stock exchange pending clarification of its future. The stock last traded at 7.3 NZ cents a share, valuing the company at NZ$2.9 million ($2.45 million).
An unnamed international retail group has agreed to buy Postie Plus as a going concern subject to due diligence, which is expected to take about a month.
“This ‘going concern sale’ of the Postie Plus business 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 administrators said in a statement.
The company said in April it had bank debt of NZ$12.1 million, with total liabilities of NZ$24.7 million and assets worth NZ$29.6 million.
$1 = 1.1860 New Zealand dollars Reporting by Gyles Beckford; Editing by Matt Driskill