PPGL optimistic about future

NEW ZEALAND: Christchurch-based apparel group Postie Plus (PPGL) is planning to combat an anticipated first half loss of $2.8 million with a new distribution strategy and a review of its Arbuckles chain.

In a statement to the New Zealand Stock Exchange, PPGL chairman Peter van Rij said the group - which has been fighting through a period of tough trading conditions - anticipated a first half loss in the vicinity of $2.8 but was optimistic about second half turnaround.

Factors influencing the result included the cost of clearing excess stock after flat sales and lower margins, with additional freight and distribution space costs. Interest paid on the increased stock and the cost of moving PPGL's Schooltex operations from Westport and Auckland to Christchurch were also believed to be contributing factors. 

"The clearing of excess stock has been achieved. It has been a difficult 12 months combating the overstock but strict systematic measures are now in place to concentrate on the benefits of lower stock levels for the future," Rij said.

The company announced the Postie Replenishment program would move from Westport to Christchurch - joining the other two key operations Schooltex and Initial allocations – in a bid to save some $2 million over the next three years.

Rij said PPGL is also reviewing external interest in its Arbuckles manchester chain after it was deemed to have had a "difficult time fitting into the PPGL stable of brands". He said the company was presently looking at business plans for a new apparel brand.