-
Line 7 - Source: ONE News -
Related
The government is not ruling out helping clothing company Line 7 but its preference is that a commercial solution is found.
The company was put into receivership on Monday and might be sold as a going concern.
Line 7 is known for its quality sailing and outdoor gear and more recently men's and women's casual gear.
It provided clothing for crews in the America's Cup, and has agreements to make clothing for the New Zealand A1GP motor racing team, Rowing NZ, and the Sir Peter Blake Trust.
Prime Minister John Key on Tuesday morning said he was not sure what the government could do but that it would look at the situation if approached.
"We've had no update on what the options are but, obviously, if they approached us we'd have a look at that but I couldn't make any promises," he said.
"It's also an important brand and it's well recognised by New Zealanders but, at the end of the day, our preference has been to find commercial solutions to commercial problems.
"It may well be, with such a strong brand, that someone comes along and buys that company."
The company had not approached the government to participate in the nine-day fortnight scheme, under which companies facing a shortage of work can reduce staff hours by one day a fortnight.
Under the scheme, staff get government-subsidised pay for the tenth day.
"I can really only reflect on the fact that they didn't come to us directly, we weren't aware of it," Key said.
"The first I saw of it was when I was watching the news last night. At this point, let's see what options are presented by the receivers."
The company has 11 stores and employs over 100 staff in New Zealand. All its clothing is made in Asia, mainly China.
Owner Ross Munro said the company had been hurt by a big fall in the New Zealand dollar since last year, affecting the cost of its Asia-made products.
Most of the money Line 7 owes is to overseas suppliers.
