Six months after textile manufacturer Lane Walker Rudkin (LWR) entered receivership, its administrators have yet to make significant progress in paying back the money it owes.Despite cutting costs by laying off 200 staff, raising $9.07 million through sel
Six months after textile manufacturer Lane Walker Rudkin (LWR) entered receivership, its administrators have yet to make significant progress in paying back the money it owes.
Despite cutting costs by laying off 200 staff, raising $9.07 million through selling off stock and equipment and selling one of its companies, Southern Alps Socks Ltd, for $1.06m, receivers had made little headway in paying off the $118m the manufacturer owed.
Of the money raised, $2m went to Westpac. Former employees received $1.06m and Inland Revenue received $333,152. The receivers paid themselves $750,517 for their work over the last six months.
The company still owed Westpac $110.27m, unsecured creditors $6.7m, Inland Revenue $578,172 and its employees $830,658.
LWR, owned by businessman Ken Anderson, collapsed in April.
In October last year, the Serious Fraud Office launched an investigation into the company, following a referral from its receivers.
Receivers Stephen Tubbs and Brian Mayo Smith of BDO alleged that LWR mis-represented its financial strength to Westpac in order to borrow money from the bank.
Mr Anderson sold another of his companies, sportswear chain Champions of the World, last month, after a supplier applied to liquidate the company. The application to liquidate was withdrawn in the High Court in Christchurch on Monday.
LWR's former employees include Prime Minister John Key. It had provided uniforms for New Zealand soldiers in World War 1 and 2, the America's Cup yachting team and New Zealand's Olympic athletes.
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