The Australian arm of New Zealand manufacturer Lane Walker Rudkin (LWR) has been granted a stay of execution amid the carve-up following the company's fall.
LWR entered receivership in late April, with estimated debts to its main creditor Westpac bank ranging between $NZ50 million and $NZ130 million. Receivers BDO Spicers in New Zealand and BDO Kendalls in Australia were appointed to close, restructure or sell off LWR businesses.
Queensland Secretary of the Textile, Clothing and Footwear Union Jack Morel confirmed the Brisbane plant, employing 84 people, would continue as a going concern with a view to sale. Morel said around 15 interested parties had come forward following the May 22 deadline for tenders. "Hopefully we should hear some good news soon."
It was understood LWR's remaining sports and teamwear businesses - which include the Adidas and Reebok labels, as well as rugby brand Union - would be centralised to Brisbane, he said.
"I've been told there are already plenty of forward orders from Reebok, so we're feeling optimistic."
In New Zealand Robert Reid, president of the National Distribution Union (NDU) confirmed there were no redundancies at the Timaru plant - producer of the Alp Socks brand - which had been ring-fenced for sale.
The Auckland-based Pod group of businesses owned by LWR - including Merino specialist Designer Textiles International, womenswear label Michele Ann and Mollers Homewares - would continue to operate under a new board and management structure, reporting to the receivers.
Meanwhile operations at cut, make and trim outfit Bouzaid and Ballaben in Greytown, on New Zealand's North Island, had closed. At the time of writing workers were yet to see any holiday or redundancy payouts. A third of the 300 workers at LWR's Christchurch operations had also been laid off without redundancy pay.
A statement released by BDO Spicers partner Stephen Tubbs confirmed the exact scale of the damage, with 186 of the group's 470 staff to be made redundant. Of these 102 were in Christchurch, 61 in Greytown, 19 in Pahiatua and four in Auckland.
"Even for the continuing businesses, the position remains difficult and no assurances can be given as to future profitability," Tubbs said.