First Union – Former Pumpkin Patch employees “over the moon” as new funds found

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Former Pumpkin Patch employees “over the moon” as new funds found

After almost six months of nervous waiting, former distribution centre staff at collapsed children’s retailer Pumpkin Patch are “over the moon” as KordaMentha confirms former staff at Pumpkin Patch Ltd (PPL) will receive their redundancy entitlements up to a $22,160 cap.

Although retail staff in Australia and New Zealand received redundancy payments shortly after the collapse, because of the way the company was structured – with the company employing retail staff holding assets and the company employing distribution centre and head office staff holding none – former distribution centre and head office staff originally went without their redundancy entitlements.

“We’ve been speaking with our members and they’re over the moon,” said FIRST Union General Secretary Robert Reid.

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“They’re glad they can draw a line under this.”

“In the end it took the determination of former distribution centre staff, their union and head office staff to make this happen. But it should’ve happened as of right.”

“Our Government should follow Australia’s lead and implement laws like the fair entitlement guarantees scheme. No one should be put out of work wondering how they’re going make ends meet. Everyone needs basic security.”

Similar laws saw former Australian and New Zealand retail workers receive preferential redundancy payments but not those at the distribution centre or head office.

“Pumpkin Patch used to be the darling of the New Zealand business world, topping customer satisfaction surveys and raising thousands for charity. But mismanagement at the top saw it all go south, as the administrator’s report shows. Although we have a better picture of how and why, there are still questions that need answering,” said Reid.

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