Tuesday 6th March 2012
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Pumpkin Patch, the children’s clothing retailer, will now sell clothes in 21 countries after signing an agreement with Mexico’s leading department store, Liverpool. The company also announced plans to ramp up distribution in the Middle East.
The retailer has signed a distribution agreement with Liverpool to sell Pumpkin Patch products in 24 of its 79 stores this year. Separately, the company’s Middle East partner, Jawad Business Group, will sell its Charlie & Me products in 25 stand-alone stores across the region over the next 12 months.
“Like all of our international relations these new partnerships will take time to build up and reach their full potential,” said Neil Cowie, chief executive of Pumpkin Patch. “As a result we don’t expect to see noticeable earnings from these relationships until later in the 2013 financial year.”
Shares in the company rose 3.7 percent to 84 cents today and have gained 27 percent this year.
Pumpkin Patch has been focusing on wholesale and franchise business to generate higher margin earnings off its existing design and supply chain, Cowie said.
“We are currently working on a number of other international and online opportunities and hope to be in a position to confirm some of these in the next month or so,” Cowie said.
In January, the retailer was forced to quit its UK operation, appointing administrators to the unit and flagging restructuring costs as high as $32 million as its 36 stores failed to make an acceptable return.
The Auckland-based company has also wound down its US retail operation.
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