Fri, 27 Nov 2009 2:39p.m.
LWR went into receivership in April after collapsing and owing Westpac $120 million
The last of collapsed clothing company Lane Walker Rudkin's manufacturing staff were today told their services will no longer be needed from next month.
More than 70 employees in Christchurch will finish up with the once iconic firm on December 22.
National Distribution Union textile and clothing secretary Paul Watson said that would leave just a handful of administration staff remaining.
LWR, owned by businessman Ken Anderson, went into receivership in April after collapsing and owing Westpac $120 million.
At the time, it employed about 470 people in Christchurch, Timaru, Greytown, Pahiatua and Brisbane.
The receivers had hoped to sell the business and Mr Watson said the latest round of redundancies was met with mixed reactions by staff.
"It's a shock to all because of the finality," Mr Watson said.
"But there's also a sense of relief for some because they've been wondering what's going on. Now they will be able to plan for the future."
Because LWR was in receivership, redundancy payments would be capped at $16,420.
Mr Watson said the union would work to place staff in new jobs, something it had had good success with.
Of the 159 LWR workers laid off in Christchurch in redundancy announcements in May and August, 90 had found permanent positions.
Mr Watson said the tragedy of the LWR's closure was that it could have been avoided if the company had managed its affairs 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
Last month, the Serious Fraud Office launched an investigation into LWR after the receivers referred a matter to it.
NZPA
