Pumpkin Patch staff fight for redundancy
About 150 former Pumpkin Patch head office and distribution workers are appealing to ANZ to release money needed to pay their redundancy entitlements.
ANZ is the biggest creditor of the failed childrenswear retailer, which was put in receivership in November last year and in liquidation in February.
Staff were employed under two arms of the company. Pumpkin Patch Originals owned the retail assets, and Pumpkin Patch Ltd provided head office and distribution functions.
Retail staff were paid redundancy funded by the sale of the remaining stock and the sale of the brand and intellectual property this week to Catch Group, an Australian e-commerce company.
But Pumpkin Patch Ltd had no assets to sell, leaving no money to pay out redundancies, which ranked behind ANZ’s debt.
A Pumpkin Patch co-founder and its first employee, Judy Oak, said she was devastated when it went into voluntary administration in October after 26 years in business.
‘‘It feels like the loyal Pumpkin Patch Limited employees from head office and [distribution] have been totally ripped off through the set-up of the company structure.
‘‘Through no fault of ours we are the ones who are missing out. We would love it if the ANZ could pay out the rest of the people as they have done for Australian and New Zealand retail staff. It’s just not fair,’’ she said.
Oak is due to retire at the end of the year and the pay would help her through the next few months as she didn’t have another job.
Jan McDowell was with Pumpkin Patch for more than 19 years and was still in shock the company was gone.
‘‘You had never seen so many workers sobbing their hearts out. We knew things were in trouble, but when we went into receivership we thought we would find a buyer. It was a second family to me and I’m still grieving. I feel like I don’t have a purpose now.’’
But both Oak and McDowell were happy the brand sold to Catch Group.
Pumpkin Patch workers and ANZ could not agree on the appointment of a liquidator during a meeting two weeks ago. The two sides plan to meet again on Monday and put the vote on a liquidator to a second vote.
ANZ spokesman Stefan Herrick said in a statement: ‘‘It’s terrible that the employees of Pumpkin Patch stand to lose their redundancy payments.
‘‘ANZ is also one of a number of creditors in this situation and our shareholders stand to lose tens of millions of dollars from the unfortunate collapse of Pumpkin Patch.’’