Pumpkin Patch’s 2014 annual accounts have been tagged by auditor PwC over the unprofitable children’s clothing retailer’s reliance on bank funding to continue trading.
The auditor’s report is included in the Auckland-based company’s annual report, which was filed to the stock exchange on Wednesday. It shows the retailer renegotiated the terms of its banking arrangements with ANZ Bank, which the board viewed as "prudent to provide accommodation for potential adverse results arising from a challenging trading environment while an extended facility was negotiated".
New covenants mean Pumpkin Patch has to remain within 20 percent of forecast earnings before interest, tax, depreciation and amortisation on a rolling 12-month basis.
(Source: The Sydney Morning Herald Online )