19 Jun 2014

Postie Plus to close 12 branches

4:01 pm on 19 June 2014

Twelve branches of the beleaguered Postie Plus clothing chain are to close. As a result, 64 staff will lose their jobs next month. The remaining 70 stores will stay open.

Postie Plus was put into administration earlier in June after years of financial troubles.

The appointed administrators, David Bridgman and Colin McCloy from PWC, said on Thursday a buyer had expressed interest in the company and is doing due diligence.

The administrators said the closure of the 12 stores is likely to make a sale slightly easier to achieve.

Colin McCloy said the closures had not affected the sale process.

"Well the buyer is currently doing diligence on the business and they're making good progress, look we are certainly very hopeful that they will proceed."

Postie Plus managers had already identified them as at risk before the chain went into administration.

Robert Reid, the general secretary of the FIRST Union, which represents Postie Plus workers, said neither the union nor the workers were told about the closures.

"Even last Thursday, when I went on behalf of our members to the creditors' meeting, the administrator was telling us that it would be basically business as usual."

Mr Reid questions whether the company's administration status is a ruse to implement pre-determined restructuring and the union will make its views known at another creditors' meeting on Friday.

Postie Plus had been in breach of its banking covenants since before the beginning of last year and was posting big losses and expects a significant loss for the 12 months ending August after posting a $13.2 million loss the previous year.