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Eighty jobs hang in the balance in two small Wairarapa towns after news that a national textile manufacturer has gone into receivership.
Lane Walker Rudkin Industries the parent company of Pahiatua and Greytown manufacturers Bouzaid and Ballaben is struggling with falling profits and spiralling debt and was put into receivership by Westpac Bank yesterday.
The group, owned by Christchurch businessman Ken Anderson, employs about 470 people in textile, hosiery, underwear and garment factories in Christchurch, garment manufacturing in Greytown and Pahiatua, a sock factory in Timaru, and a sports apparel factory in Brisbane. “The news has already started, I guess,” one worker said.
The future of those jobs now hangs in the balance and the mood was grim in the Greytown factory of Bouzaid and Ballaben last night. It is in the hands of the receivers now. “We cannot comment.”
The company employees up to 63 staff in Greytown, which has few employment opportunities.
Barry Akers, spokesman for receivers BDO Spicers, said it was still very much a waiting game.
In Pahiatua, a town with even fewer job options, up to 15 staff could face redundancy. Staff will continue to get paid while the receivers have control of the business and the company may even be able to trade through this. “At the moment it is business as usual.”
Receivers Brian Mayo-Smith and Stephen Tubbs said Lane Walker Rudkin operations were unprofitable and the company had incurred a substantial increase in bank debt.
“It will at least be a few days before any decision on job cuts is made and we understand it is not a good time for any of those employees. .
More information was needed about the businesses before receivers could take action or make decisions about the company’s trading operations.
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