MELBOURNE: The jobs of 170 Melbourne textile workers have been put on the chopping block after administrators failed to find a white knight to keep Melba Industries afloat.
As first reported on Ragtrader Online in February the 75-year-old protective fabric supplier went into voluntary administration two months ago having been hit hard by increased demands for cash upfront from its suppliers.
At the time the Textile Clothing and Footwear Union of Australia (TCFUA) appealed to the Rudd government to help support the company - that supplies protective fabrics to the armed service and firefighters - arguing the company's products were of "vital" importance to the community.
However according to Australia Associated Press reports the union's plea has fallen on deaf ears with administrator Matt Byrnes stated that liquidation would be recommended at a second meeting of creditors set down for April 30.
Byrnes, of the firm Grant Thornton, told the news service that company's operations would be wound down after that and employees would lose their jobs.
"There will be a transition or trade-down. At the end of all that. All the employees will be made redundant."
He said several parties had expressed interest in buying the company's assets including a manufacturing plant and machinery.