470 jobs at risk at clothing manufacturer
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The Century-old Christchurch based clothing-maker Lane Walker Rudkin (LWR) Industries, which has hosiery and garment factories in Christchurch; garment manufacturers in Greytown and Pahiatua; a sock factory in Timaru and a sports apparel factory in Brisbane, Australia, has gone into receivership, meaning up to 470 workers may lose their jobs.
Last November, LWR Industries made 60 staff redundant, citing lack of export demand, but said the business was profitable. But the company is not turning a profit now and has incurred a substantial increase in bank debt, according to receivers Brian Mayo-Smith and Stephen Tubbs, partners in BDO Spicers.
The National Distribution Union, which represents the workers, said the receivership is a result of poor management of the business and the impact of the bitter and public marriage breakup involving owner Ken Anderson and then comanpany director Patricia Anderson. NDU secretary of the clothing and textiles sector Maxine Gay told The Press;
It was completely erratic, they were very difficult to deal with at that time ... it was a very public and very acrimonious business and personal relationship breakup and what we believed had also impacted on the decisions that were being made at the time.
The social democratic Alliance Party is calling on the Government to nationalize Lane Walker Rudkin to prevent “a disastrous loss of hundreds of jobs.” Economic Development Spokesperson Quentin Findlay said in a press release that “it is vital that jobs and incomes are preserved to prevent mass unemployment” commenting that Government should take control of failing enterprises and investigate options such as public ownership, employee shareholdings and worker ownership.
