27 July 2006

Feltex must be saved

Iconic kiwi carpet manufacturer Feltex must be saved, Green Party Community Economic Development Spokesperson Sue Bradford says.

She was commenting on the ongoing attempts to find a new cornerstone investor for the company while the value of its shares have plummeted to new lows.

"Feltex is too big a Kiwi institution to be allowed to collapse. It employs more than 700 workers and is a large earner of overseas funds based on the value added manufacture of New Zealand wool. It is exactly the type of company that New Zealand needs now and in the future.

"This is the second time in recent history that Feltex has been in such a precarious financial position. The previous occasion took place when its former owner Equitycorp went into free fall. The cause of these problems does not lie with the competent and efficient Kiwi workforce and management but with boardroom battles and financial disputes.

"I also feel sorry for the mum and pop and institutional shareholders that bought into Feltex when it was floated on the stock exchange and who have now seen a 10-fold reduction in the value of their shares," Ms Bradford says.

"I wish the Feltex Board all the best in trying to find a new investor for the company. I fully support workers and their union, the NDU, during this difficult period. This Kiwi-made company must survive."

ENDS

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