Lane Walker Rudkin to shut its doors before Christmas

Iconic clothing manufacturer Lane Walker Rudkin will lay off its remaining staff and shut down before Christmas, the union representing the company’s workers said today.

The company has about 80 workers remaining after laying off more than 140 since it went into receivership in April.

LWR is now being investigated by the Serious Fraud Office after receivers BDO Spicers raised a red flag.

According to BDO Spicers, the LWR group “had misrepresented its financial strength to Westpac in order to borrow more money from the bank.”

It owes about $120 million to Westpac.

National Distribution Union textile and clothing sector secretary Paul Watson described the closure of Lane Walker Rudkin as an “avoidable tragedy.”

He said the workers that remained after the receivers made redundancy announcements in May and August had been dreading this day.

“They were hoping someone would buy 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.”

Mr Watson said the company had borrowed over $100 million and huge losses were being incurred month after month but no one did anything about it.

“The Serious Fraud Office has been called in, hundreds of workers lost their jobs and full redundancy entitlement and New Zealand clothing manufacturing has lost its biggest employer.”