- Collapse of retailers Pumpkin Patch and Payless Shoes one month out from Christmas
- Almost 1900 jobs at risk or lost
- Payless Shoes has entered voluntary administration
- Pumpkin Patch failing to find a buyer
Only a month out of Christmas, one of Australia’s biggest independent shoe retailers Payless Shoes, has collapsed and entered into voluntary administration.
The announcement means that all of the brands 870 employees across its 131 stores have been put at risk of losing their jobs in the near future.
This will be the second time in three years that Payless has fallen into administration, the first in 2013 when it was bought by US business Payless ShoeSource who helped breathe second life into the brand.
Administrator Ferrier Hodgson said the 36-year-old retailer would continue to trade as normal for the time being as the hunt continues for a buyer to rescue the business.
This news comes as another well-regarded Australian brand Pumpkin Patch announced that receivers were unable to find a buyer to save the children’s clothing retailer and that stores would begin to close down.
Pumpkin Patch entered voluntary administration in late October under a $76 million debt. The brand employs over 1000 workers in Australia over 117 stores with close to 600 employees in New Zealand over 43 stores.
Receivers have said that the brand has been given no choice to close the business down due to the fact that a buyer had not shown up.
At this stage, stores will continue to trade until the end of December with some continuing into the new year until stock diminishes.
Restructuring of the brands head office will begin this week with 63 jobs estimated to be lost and their New Zealand headquarters to shut by February next year beginning with the sale of all remaining stock.