Up to 50 jobs to go by Christmas

Up to 50 jobs at Christchurch clothing manufacturers Lane Walker Rudkin (LWR) will be axed just three days before Christmas.

Staff were told yesterday the Christchurch manufacturing operation of LWR, comprising cutting and sewing of garments, would close on December 22.

It is the third round of redundancies since the company went into receivership on April 28.

In total, 186 Christchurch jobs were lost in May and August with about 87 factory workers retained.

The National Distribution Union (NDU) said between 40 and 50 staff were given notice yesterday, but the receivers would not confirm the number.

It appeared the factory would not close completely and some sales and administration staff would remain.

"The LWR Hosiery and Underwear division of Lane Walker Rudkin will continue to trade in the marketplace, continuing to supply customers with full product lines," the receivers said in a statement.

LWR redundancy support co-ordinator Jack Taylor said the closure was expected.

Staff had hoped a buyer could be found to keep business going.

"They've been working week-by-week and thinking `which day is it going to be?' In hindsight, at least these people have been given notice."

The affected workers were "gutted".

"There was quite a few tears and different emotions in there. They're pretty cut up at the moment."

Taylor said closing just before Christmas was another blow.

Staff would receive a "buffer" redundancy payout on their final day, he said.

"At least the people have got some time to move on and they start looking for jobs. Hopefully, they might find something in the new year."

Margaret Farrington, an LWR employee for 26 years, said confirmation of the closure was a relief in some ways and sad in others.

"We knew it was coming sooner or later, but not right on Christmas," she said.

"A lot of us were hoping that maybe we would come back for a wee while next year. It's good to know, so at least we can start planning."

LWR is under investigation by the Serious Fraud Office after the receivers laid a complaint that the company had misrepresented its strength to Westpac bank in order to borrow money from it.

NDU textile and clothing sector secretary Paul Watson said the closure was "potentially avoidable" had the company been managed more responsibly.

"The company had borrowed over $100 million and huge losses were being incurred month after month but no-one did anything about it," he said.

Taylor said the state of the industry was "not great", with Pacific Brands and Deane Apparel also announcing redundancies in Canterbury this year.

"At least Deane has taken the bull by the horns and restructured. They've still got their Wairakei and Rangiora plants open and, unfortunately, Leeston was the one that had to close."