Lane Walker Rudkin closing completely

Century-old clothing manufacturer Lane Walker Rudkin Industries group is shutting down completely.

Its remaining more than 80 workers will be laid off just before Christmas.

LWR  is now the subject of a Serious Fraud Office investigation after the receivers, appointed in late April, laid a complaint.

Receivers BDO Spicers say the LWR group "had misrepresented its financial strength to Westpac in order to borrow money from the bank". LWR owes about $120m to Westpac.

The National Distribution Union secretary Paul Watson said today LWR's remaining staff will turn off the sewing machines and the lights just before Christmas.

The staff were being told of the closure this morning. The staff that had held on to their jobs after the May and August redundancy announcements had been dreading this day, he said.

''They were hoping someone would purchase the business and keep it going but at the same time it is a relief to know what is happening so they can plan ahead,'' Watson said.

He believed the tragedy of this closure was potentially avoidable had the company been managed more responsibly.

Nearly 280 workers have been laid off in the past year - around 60 in November last year after LWR bought a rival business in Auckland, Pod, and the rest since the receivership was announced in late April.

The companies in receivership are LWR Industries and seven subsidiaries, owned by Christchurch businessman Ken Anderson.

- © Fairfax NZ News