Pumpkin Patch plunges on CEO’s resignation
Pumpkin Patch shares fell 17 per cent on Thursday morning after its chief executive Di Humphries resigned.
Its shares dropped 4 cents to 19.5c after the children’s clothing company said Humphries, who had been with the company for just two years, would step down on November 4.
Less than a week beforehand Pumpkin Patch announced that it had not found a suitable buyer or investment backer, despite inviting offers.
Chairman Peter Schuyt said that because of changes made by Humphries, the company was starting to see an improvement in its underlying performance, inventory and debt.
‘‘Di inherited a company that required, and still requires, major changes across all parts of the business.
‘‘Those changes have progressed in a very demanding and challenging business environment and we want to acknowledge the huge commitment that Di has made, and continues to make,’’ Schuyt said.
Humphries said good progress had been made on the company’s product design, supply chain and brand positioning and the company needed to keep focused on those things.
Pumpkin Patch told shareholders last Friday that it still expected to make normalised earnings before interest, depreciation and amortisation (Ebitda) of $14 million for the year.
Talks with interested parties had failed, and the company believed the changes it was mak- ing could ‘‘deliver greater value to shareholders over the medium term than any alternative pres- ently available’’.
‘‘Nonetheless, market conditions are expected to remain challenging and earnings may be volatile going forward,’’ the company said.