Bright Wings

SFO investigating Lane Walker Rudkin

The Herald reports that the Serious Fraud Office (SFO) is investigating the failure of clothing and textile manufacturer Lane Walker Rudkin, who also owned the former Bouzaid and Ballaben clothing factories in Greytown and Pahiatua.

SFO director Grant Liddell said his office had launched an investigation following a complaint from the LWR group's receivers.

The century-old Christchurch company collapsed in April owing a total of $121 million.

Over $111 million of that is owed to Westpac.

Liddell said the receivers claimed LWR had misrepresented its financial strength to Westpac in order to borrow from the bank, and if Westpac had known the true position it would not have lent so much.

In his first report in July for the parent entity Lane Walker Rudkin Industries, joint receiver Stephen Tubbs of BDO strongly criticised the company's management.

"The standard of financial reporting and corporate governance have, in our view, been inadequate for a company of this size and have been significant factors in the company's underperformance and entry into receivership," he said.

Cold comfort for the 230 staff who have lost their jobs as a result of the collapse.

LWR Receivers lay complaint with Serious Fraud Office

Receivers of Lane Walker Rudkin (LWR) have laid a complaint with the Serious Fraud Office. Details are not available.

This may be cold comfort to former Bouzaid and Ballaben employees in Pahiatua and Greytown who are very unhappy they have only received 70% of the redundancy and holiday payout, whereas other LWR staff in Christchurch have been paid out in full. (See my earlier post.)

LWR collapsed in July, owing $121 million to creditors.

Wairarapa LWR workers receive less than Christchurch counterparts

Former Bouzaid and Ballaben employees made redundant by the collapse of Lane Walker Rudkin (LWR) have had a further payout but are likely to end up with only 70 per cent of the total redundancy and holiday pay provided for under receivership legislation.

Their Christchurch colleagues, on the other hand, have received full payment.

The National Distribution Union General Secretary, Robert Reid hopes that

the Wairarapa community, including its Mayors and MPs will support the workers in their call to be treated the same as other redundant LWR workers.

Read the full story here.

Goodbye Bouzaid and Ballaben

There must have been some damp eyes at the Bouzaid and Ballaben clearance auction in Greytown. The sale attracted a crowd of 200 people, including many former employees.

Sale of the machinery and fittings closes the final chapter in the demise of this excellent business, caught up in the liquidation of Lane Walker Rudkin.

I hope those capable employees have been able to find other work.

On a more positive note, the Times-Age also reports Greytown resident Paddy Marron is wanting to buy the building to set up a Paddy's Market

Further payout for Bouzaid and Ballaben staff

Bouzaid and Ballaben staff have had a further payout according to a Stuff report.

Redundant workers of clothing manufacturer LWR Industries have been paid substantial payments in the past few days.

The receiver BDO Spicers said today the payments brought the total so far to 55 cents in the dollar of the total employee preferential entitlements, which is a gross limit of $16,420 under law for wages, holiday pay and redundancy owed.

If workers are owed any more than that, the debts become unsecured claims against the LWR group.

Some little comfort for these workers.

Bouzaid and Ballaben staff receive very little

Stuff reports that receivers for Lane Walker Rudkin (LWR) owe creditors $121 million and it is unlikely any money will be available for unsecured creditors.

Bouzaid and Ballaben (owned by LWR) workers in Pahiatua and Greytown received only 10 cents in the dollar redundancy and holiday pay.

Given that many of these workers had been with Bouzaid and Ballaben for many years and produced a high quality product, this is a very sad outcome for loyal service.  I hope these people have been able to find work in this difficult environment.

Fighting fund for Bouzaid and Ballaben staff

The Wairarapa Times-Age reports a fighting fund has been set up to help the former workers of Bouzaid and Ballaben in Greytown and Pahiatua. These workers were made redundant last week following the receivership of Lane Walker Rudkin.

Contributions can be made at any branch of the Bank of New Zealand:

• Account:  National Distribution Union Fighting Fund
• Account number:  02-0192-0491501-000  

Sad day for Wairarapa

Widespread redundancies announced today by receivers for Lane Walker Rudkin will have a significant impact on the Wairarapa.  

Nineteen people in Pahiatua and 61 in Greytown have been made redundant today and it is doubtful whether they will receive any holiday pay owing to them.  News reports indicate that management ineptitude and huge bank debt was the cause.

The Bouzaid and Ballaben factory in Greytown is a Wairarapa institution which has survived many changes of fortune, with many of the workers being bussed in each morning from Masterton and Carterton.  The little outlet shop in West Street has been a great place to pick up teeshirts.

It would be great if some enterprising Wairarapa business people could put their heads together and buy this business from the receivers.  I'm sure there are niche markets in the rag trade that a small, flexible company like this could serve.