Postie Plus Group Limited (Administrators Appointed)

Friday 18 July 2014

News release

Postie Plus Group Limited (Administrators Appointed)

David Bridgman and Colin McCloy, as Administrators of Postie Plus, have today announced they have completed the sale of the Postie Plus business to Roan Limited, a wholly owned subsidiary of Pepkor Limited.

The sale involves the transfer of the Postie Plus Auckland head office and 64 retail stores located throughout New Zealand, with more than 530 of Postie’s approximately 560 staff having accepted positions with the new owner of the business.

Pepkor is a well established apparel and footwear retailer, originally based in South Africa, and now with retailing operations throughout Southern Africa, in Eastern Europe and Australia (where its operations include the Best & Less and Harris Scarfe chains).

Administrator David Bridgman says: “We are very pleased to have been able to complete the sale of the Postie Plus business as a going concern within six weeks of our appointment as Administrators. We believe this sale is in the best interests of all creditors and Postie Plus staff.”

“Many of the Postie Plus suppliers will be able to continue trading with Postie Plus under its new ownership with all of the Postie Plus Auckland-based head office staff and the majority of its retail staff offered employment with the new owner.”

The Administrators will now attend to post completion matters, including the calling of the Watershed Meeting for creditors as required under the rules governing Voluntary Administrations.

Mr Bridgman added: “The ability to conclude a sale of the Postie Plus business as a going concern was materially assisted by using the Voluntary Administration regime, given the moratorium on creditor claims and the ability to transfer leases on terms satisfactory to the purchaser. This has enabled a better outcome to be achieved for creditors than would have occurred had the Company been placed in receivership.”

The Administrators again wish to record their sincere appreciation for the commitment and loyalty shown by the Postie Plus management team and retail staff over the last six weeks, the patience and forbearance that has been shown by the Company’s creditors, and the ongoing support of its many customers.

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Notes to editors:
The process of ‘voluntary administration’ is a relatively new business rehabilitation scheme that was introduced into New Zealand company law on 1 November 2007. Administration is intended to be a relatively short-term measure that freezes the company’s financial position while the administrator and the creditors work on the next steps.

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