Pumpkin Patch CEO quits

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Di Humphries has resigned as Pumpkin Patch [NZX: PPL] chief executive, effective from November 4.

Pumpkin Patch chairman Peter Schuyt announced the resignation to the NZX late this morning, saying Ms Humphries wants to “focus on her future career goals.”

In the release, Ms Humphries,  a former Glassons head who took over at Pumpkin Patch in 2013, said she had “enjoyed” making changes necessary to stabilise the business and make it competitive again.

“I believe now is an appropriate time for a new CEO to take the company through the next stage of the business improvement process,” she said.

“Good progress has been made on product design, supply chain improvement, brand positioning and laying the foundations for the business transformation program. A continued focus on these areas remains critical to the ongoing improvement of the company.”

The childrenswear company has been plagued with problems and profit downgrades in recent years, and on Friday announced it had ended a process seeking a buyer or an equity injection and neither would take place.

Pumpkin Patch told shareholders at its annual meeting in November it had hired Goldman Sachs to advise on a capital review and in March said the process of seeking formal proposals had just begun.

At balance date in January Pumpkin Patch had debt of $52.7 million and operating cashflow for the half year of $14.8 million.

Mr Schuyt said the business is starting to show the improvements in the underlying retail performance of the business and the balance sheet in terms of inventory and debt levels.

“Di inherited a company that required, and still requires, major changes across all parts of the business. Those changes have progressed in a very demanding and challenging business environment and we want to acknowledge the huge commitment that Di has made, and continues to make, to the role of CEO and the company,” he said.

The board is looking for her replacement.

Pumpkin Patch completed a strategic review of all areas of the business last year – with reorganisation costs of $14.6 million – and is trying to run a two-year transformation to improve the company’s financial position in future.

Its management expects normalised earnings before interest, tax, depreciation and amortisation of $14 million for the year to July 31.

Pumpkin Patch shares are at 20 cents, having fallen about 15% today and 53% in the past 12 months.

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