LWR staff informed of technical contract changes

News Release
11 May 2009

LWR staff informed of technical contract changes

The receivers of Lane Walker Rudkin Industries Limited (LWR), Brian Mayo-Smith and Stephen Tubbs, have today announced a technical change to the basis on which the group operates under ongoing commercial contracts.

Under relevant law (the Receivership Act 1993), receivers assume personal liability 14 days after their appointment for contracts under which the business continues to operate, unless new contracts have been adopted. As is standard practice, the LWR receivers have moved to replace the existing contracts with new contracts that exclude personal liability.

This technical change applies to employment contracts as it does to all others. Accordingly, LWR staff were briefed on the change today. The terms and conditions of all new employment contracts are as per those applying under the previous contracts.

Mr Mayo-Smith and Mr Tubbs were appointed joint receivers and managers on Tuesday 1 May to protect the financial position of LWR and its subsidiary Pod while issues facing the group are resolved. The LWR operations are currently unprofitable and have incurred a substantial increase in bank debt.

The POD group of businesses owned by LWR – Designer Textiles International, Michele Ann and Mollers Homewares – are not in receivership. These continue in operation under a new board and management structure reporting to the receivers.

ENDS

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