LWR placed in receivership, Pod assets ringfenced

Lane Walker Rudkin placed in receivership, Pod assets ringfenced

April 28 - Lane Walker Rudkin, the Christchurch-based clothing manufacturer that traces its origins back to the 1880s, was placed in receivership by its bank amid mounting debts.

The company employs about 470 people in textile, hosiery, underwear and garment factories in Christchurch, garment manufacture in Greytown and Pahiatua, a sock factory in Timaru and a sports apparel factory in Brisbane. The business is owned by Christchurch businessman Ken Anderson, who acquired LWR in 2001 and Pod group of textile, clothing and homewares in 2007.

Brian Mayo-Smith and Stephen Tubbs, partners in BDO Spicers, have been appointed joint receivers and managers, effective today, they said in a statement. The appointment was made to protect the financial position of LWR and Pod while issues facing the group are resolved, according to the statement. The LWR operations are currently unprofitable and have incurred a substantial increase in bank debt.

“Information available up to this point would appear to indicate that the Pod operations are profitable and cash positive,” Tubbs said. “These operations will be ‘ring-fenced’ under a dedicated board and management structure reporting to the receivers.”

Under the arrangements, chief executive Malcolm Walkinshaw and chief financial officer George Gin will remain in place and its bank, Westpac, will provide additional finance to ensure the short-term liquidity and flexibility of the Pod businesses, Tubbs said.

LWR paid NZ$22.5 million for Pod, the listed on the NZX, in 2007.

(Businesswire)

© Scoop Media