Under the agreement, Postie Plus will change its name to Retva Ltd

Under the agreement, Postie Plus will change its name to Retva Ltd

Troubled New Zealand clothing retailer Postie Plus has been sold to Roan Ltd, a wholly owned subsidiary of South African investment company Pepkor. 

Under the agreement, Roan has acquired the retail chain's head office and 64 stores in New Zealand, with more than 530 of Postie's 560 staff moving to positions with the new owner. Postie Plus will also change its name to Retva Ltd.

Pepkor has retail operations in South Africa, Eastern Europe and Australia, where its businesses include the Best & Less and Harris Scarfe chains.

Financial terms of the agreement were not disclosed.

The move comes six weeks after ongoing losses and a lack of new capital forced Postie Plus into administration.

During the six months to 2 February, the group's net loss after tax widened to NZD3.8m (US$3.2m) from NZD1.8m in the prior year period, while sales fell 9.9% to NZD39m over NZD43.3m last year.

Administrator David Bridgman believes the sale as a going concern is in the "best interests" of all creditors and Postie Plus staff. He added that many of the retailer's suppliers will be able to continue trading with Postie Plus under its new ownership.