Textile manufacturer with 470 workers goes under

Textile manufacturer Lane Walker Rudkin Industries Limited has been placed in receivership by its bankers.

The LWR operations were unprofitable and the company had incurred a substantial increase in bank debt, said receivers Brian Mayo-Smith and Stephen Tubbs, partners in BDO Spicers.

Christchurch businessman Ken Anderson bought LWR in 2001 and subsidiary Pod in 2007.

LWR employed about 470 people at textile, hosiery, underwear and garment factories in Christchurch; garment manufacturers in Greytown and Pahiatua; a sock factory in Timaru; and a sports apparel factory in Brisbane.

Pod comprised fabric maker Designer Textiles International, clothing designer and manufacturer Michele Ann, and Mollers Homewares, all in Auckland.

"Information available up to this point would appear to indicate that the Pod operations are profitable and cash positive," Mr Tubbs said.

"These operations will be ring-fenced under a dedicated board and management structure reporting to the receivers."

Chief executive Malcolm Walkinshaw and chief financial officer George Gin would remain, and receivers understood the bank would provide extra finance to ensure Pod's short-term liquidity and flexibility.

More information was needed about the LWR businesses before receivers could take action or make decisions about the company's trading operations.

"What we can be sure of is that the decision to appoint receivers has not been taken lightly - it has become unavoidable through a significant deterioration in the overall financial position of the LWR businesses," Mr Tubbs said.

The receivers plan to make a further statement in the next fortnight.

- NZPA