Pumpkin Patch buys HBK Girl

By IRENE CHAPPLE

Pumpkin Patch, preparing for a mid-year listing, has been revealed as the buyer of Hallenstein Glasson's HBK Girl chain.

Pumpkin Patch chief executive Maurice Prendergast said the buy was "opportunistic", but it complemented the company's core business.

HBK Girl is for "tweens" - the 8- to 14-year-olds - and Pumpkin Patch caters for the younger market.

Pumpkin Patch already has an 'Urban Angel' brand for the older age bracket, and the HBK Girl stores could be rebranded under that label.

A store in Christchurch, opening in four weeks, would come under the rebranded name.

Prendergast said it was still too early to say what the final brand would be, "but it might be Urban Angel Girl, or HBK Girl with the Urban Angel brand stocked in it".

He would not say how much the 14-store New Zealand chain cost.

"But we think it was value for money."

Prendergast said HBK Girl's sales would be about $10 million for the 2005 year. He aimed to increase it to $15 million within two or three years.

The 40-odd staff would be kept on, he said.

The sale was announced by listed retailer Hallenstein Glasson - which runs the Hallensteins menswear and Glassons womenswear brands - when it issued half-year figures last Tuesday. It would not name the buyer.

Hallenstein Glasson managing director Cliff Kinraid said HBK Girl "just didn't fit" with the rest of the business. However, the exit would have no significant effect on the annual result, he said.

Prendergast said Hallenstein Glasson approached Pumpkin Patch wanting to sell the HBK chain.

"It was opportunistic more than anything else. We are very much into growing our business organically."

Pumpkin Patch, founded by Sally Synnott in 1991 with a mail order catalogue and retail store, is expected to list in June and is understood to want to raise at least $100 million.

The company is expected to reach annual sales of about $215 million, including those of HBK Girl, this financial year.