30 Jun 2009

Pumpkin Patch to close 20 stores in US

3:18 pm on 30 June 2009

Upmarket children's retailer Pumpkin Patch is closing 60% of its stores in the United States, blaming market volatility for draining its bottom line.

The company says it will close 20 of its 35 United States stores, with discussions remaining on four others. About 200 jobs will be affected.

Chief financial officer Matthew Washington says Pumpkin Patch will concentrate on the US west coast in future.

However, he says Pumpkin Patch is not ruling out further expansion if opportunities arise.

Meanwhile, Pumpkin Patch says trading remains reasonably robust in its Australian and New Zealand markets.

It forecasts bank debt will be at the lower end of the $30 million to $40 million range.

Shares in Pumpkin Patch rose 13 cents, 10%, to $1.48 on Tuesday.