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Administrators examining Howards Storage

AAP logoAAP 12/12/2016

The administrators appointed to Howards Storage World say it is too early to identify the reasons for the retailer's financial troubles.

Vaughan Strawbridge and David Lombe of Deloitte's restructuring unit were appointed on Friday when Howards Storage followed the route taken by fellow retailers Pumpkin Patch and Payless Shoes in recent months and entered voluntary administration.

"It's very early days as far as our appointment is concerned and we have commenced an urgent assessment of the group's financial position," Mr Strawbridge said in a statement on Monday.

"The immediate priorities are to continue to trade; communicate with all stakeholders including franchisees, staff and suppliers; and to commence a sale of business process."

The stores will continue to trade while the administrators assess the company's finances and try to find a buyer.

Children's clothing chain Pumpkin Patch will close in February, leaving more than 1,000 employees without jobs after its receivers were unable to sell the business.

The New Zealand based company, which went into voluntary administration in October, had an 11 per cent fall in sales during the 2016 financial year and made an after-tax loss of $NZ9.1 million ($A8.7 million).

Discount shoe chain Payless Shoes, which has 870 employees across 131 stores, went into administration in November. The group's administrators are trying to sell the business.

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