Pumpkin Patch head office employees – based in East Tamaki – are to receive unpaid preferential claims paid.
Pumpkin Patch (PPL) receivers Brendon Gibson and Neale Jackson of KordaMentha today advised they have successfully recovered funds enabling former employees of Pumpkin Patch to have outstanding preferential entitlements paid.
This means that 153 employees of the children’s clothing chain will now receive any outstanding holiday or redundancy entitlements up to the statutory preferential cap of $22,160 (gross) per person.
Mr Jackson said that while it was a small victory in a difficult time, he was pleased that employees would be receiving more than had been expected.
“When the business entered receivership, we were upfront with head office employees advising that any payment of entitlements would be unlikely as PPL has no available assets to meet these entitlements.
“Together with the management team we continued to investigate any potential avenues of recovery. This has been a complex matter and consequently that process has taken some time.”
He added that successfully recovering the funds is the “best possible result” for employees who, in this case, receive priority ahead of any other creditor.
Staff with outstanding preferential entitlements are being notified directly, with payment due in mid-May.