Pumpkin Patch

[BlackPeter]

Looking at the successful companies who would consider a cheap takeover would cotton group take a look at this.

Some synergies to create but a cheap entry into the store network.

Cotton on group are opening 1 store daily.

Good question. I think Cotton on's strength is to sell good quality at reasonable price. They do well when customers can directly compare their products (like in malls) ... and they have a quite low cost overhead.

Not sure, whether taking over PPL's store chain would help in that regard ... expensive long term leases for shops in often not that desirable locations. Might have been quite different 5 years ago, when customers still used to frequent the stores ... but now the PPL stores are off the grid, people are just not used anymore to direct their vehicles into their parking lots ...

[Beagle]

Net Bank Debt fell 40% to $39m. That's the key takeaway from the result and that's the key reason in my opinion why the ANZ decided to extend their debt facility. It would be interesting to see how tight all the covenants are on the renewed debt facility but I would speculate the ANZ will have this company on a very tight leash with the primary goal of reducing their debt further. With strong currency headwinds and a soft economy and tough retail environment I see little medium term prospect of this company returning to profit in the foreseeable future.

[Snow Leopard]

From today's announcement (my emphasis):

"In Friday’s market update the company also signalled that it was in advanced discussions with its bank about the scheduled extension of banking facilities. Peter Schuyt said discussions with the company’s bank had been successfully concluded with facilities in place through to the end of 2017, on terms and conditions appropriate to the circumstances of the company"

No comment

Also note from the accounts that they discovered they could not add up properly (my interpretation) for the last couple of years. - Still we all make mistakes.

Best Wishes
Paper Tiger

[Crackity]

From today's announcement (my emphasis):

"In Friday’s market update the company also signalled that it was in advanced discussions with its bank about the scheduled extension of banking facilities. Peter Schuyt said discussions with the company’s bank had been successfully concluded with facilities in place through to the end of 2017, on terms and conditions appropriate to the circumstances of the company"

No comment

Also note from the accounts that they discovered they could not add up properly (my interpretation) for the last couple of years. - Still we all make mistakes.

Best Wishes
Paper Tiger

I will comment for you PT - this company is now in business to make money for the ANZ - I'm sure there are fees / covenants / stepped interest rates and more fees galore.....

and they ( ANZ ) reserve the right to pull the plug at any time.

To use a Hunter S Thompson phrase they are deep in the belly of the beast.....

Sad.

[winner69]

AGM sounded like it was a pretty gloomy affair. Wonder if anybody beside the bank anger went?

Strategy still based on hope - as already signalled F16 is a disaster - lets hope like hell that F17 is better

Your brand has some value the head man said - and he is hoping to see hs grandchildren proudly dressed in pumpkin one day, just lie his own children.

[Beagle]

AGM sounded like it was a pretty gloomy affair. Wonder if anybody beside the bank anger went?

Strategy still based on hope - as already signalled F16 is a disaster - lets hope like hell that F17 is better

Your brand has some value the head man said - and he is hoping to see hs grandchildren proudly dressed in pumpkin one day, just lie his own children.

Wow...I had a good read through Chairman's and CEO's address's. This stood out:-

we are confirming today that the outlook for F16 remains extremely challenging both from a market point of
view, particularly in New Zealand and in relation to dealing with a number of
legacy issues.

As previously indicated trading EBITDA for F16 will be significantly below
F15 . Further guidance will be provided at the time of our half year result
announcement in March.

Looks like a grim and extremely challenging / lengthy task ahead. Sad to see a company of such former standing on its knees like this and ostensibly trading at the behest of the ANZ.

[winner69]

Wow...I had a good read through Chairman's and CEO's address's. This stood out:-



Looks like a grim and extremely challenging / lengthy task ahead. Sad to see a company of such former standing on its knees like this and ostensibly trading at the behest of the ANZ.

I left the profit bit out cos I was being nice

Sad only because they they 'rested' on their laurels and made little effort to change as the world changed.

They still banking on this 'great brand' but don't just seem to get it - the brand in its current state is not relevant and beyond redemption sounds better than rooted (as the bank manager says)

[Beagle]

Beyond redemption much more P.C. mate, maybe not totally but they're certainly facing an enormous set of challenges.

[Baa_Baa]

Beyond redemption much more P.C. mate, maybe not totally but they're certainly facing an enormous set of challenges.

But do you think they're up to the challenge. This, after the next few days of inevitable SP slaughter, could be the buy of 2016!

[winner69]

But do you think they're up to the challenge. This, after the next few days of inevitable SP slaughter, could be the buy of 2016!

Many highly credentialed people have tried over the last few years but failed - a whole lot of new faces also with impeccable pedigrees are now having a go.

If beyond redemption because the brand itself is 'rooted' than I would say no they wont succeed

I would worry hearing Luke the MD say ' My wife Gaye and I have three kids, 19, 23 and 25. They all grew up wearing Pumpkin Patch clothes. We want to see our grandchildren, if we were to be so lucky, wearing Pumpkin Patch clothes too!"

That says it all - patch was iconic and the in thing a generation ago - but not anymore. I would say the grandchildren would only be wearing patch because grandma bought them (staff rates and assuming still in business). I would say the parents would be also be mortified and wait until grandma has gone before changing them in the new modern outfit of the day

That's how I see it as of today.

Still watching - it might have one last gasp of air to make a recovery before sinking for good - could even make heaps out of it,