LWR lays off last of Chch manufacturing staff 

Source: ONE NewsThe Lane Walker Rudkin factory in Christchurch

The last of collapsed clothing company Lane Walker Rudkin's manufacturing staff in Christchurch have been told their services won't be needed from next month.

More than 70 employees will finish up on December 22, the National Distribution Union said.

Textile and clothing secretary Paul Watson said that would leave just a handful of administration staff remaining in the Christchurch manufacturing operation.

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.

Watson says the latest round of redundancies was met with mixed reactions by staff.

"It's a shock to all because of the finality," Watson says.

"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.

Watson says 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.

Watson says the tragedy of the LWR 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 says.

Last month, the Serious Fraud Office launched an investigation into LWR after the receivers referred a matter to it.