50 jobs lost as factory sale fails

Clothing manufacturer Pacific Brands will close its Palmerston North factory next month with the loss of 50 jobs after efforts to sell the factory failed.

In March, the company said it intended to stop production in its Christchurch and Palmerston North plants.

Both factories went up for sale with the possibility of jobs being created if either was bought.

But the company said yesterday no formal offers had been received for the Palmerston North plant which would now close on July 31.

The announcement came two weeks after the company said it was closing the Christchurch factory with the loss of 38 jobs.

Pacific Brands underwear and hosiery group general manager Ross Taylor said the company had received some interest in the factory but had decided "the business case was not justifiable".

Pacific Brands would pay staff their full contractual entitlements and had developed a retraining and outplacement programme for workers made redundant, and would pay for a redundancy resource centre at the factory.

The company would also fund retraining to the value of around $3000 for each employee.

The Christchurch sock business had been sold to local management, but the factory would close late this month or next, Mr Taylor said. Employees would be offered the retraining and outplacement programme.

National Distribution Union president Robert Reid said the Palmerston North workers had lived under the threat of closure for almost four months since they were told of Pacific Brands' intention to stop manufacturing in New Zealand in March.

"Now the announcement has been made the workers will be able to get on and organise the rest of their lives," Mr Reid said.

He said workers would receive a "modest" redundancy settlement.

Although workers would be made redundant in a couple of weeks, the NDU was optimistic a buyer would still be found for the Palmerston North plant.

This could result in some workers being rehired, Mr Reid said.

- NZPA