No assurances for future of Swanndri workers

NEW ZEALAND: Employees of iconic New Zealand brand Swanndri face a period of uncertainty after the brand was taken over by one of its major suppliers.

Christchurch-based apparel company Longbeach Holdings, which bought the brand earlier this week for an undisclosed sum, has employed all 30 Swanndri staff but put the company's four retail outlets under review.

The change in ownership comes just over three years after a consortium led by outgoing Swanndri chairman Bryan Pearson and his replacement Gerard Kilpatrick bought the brand from Alliance Textiles in 2004.

The duo spent the intervening years rejuvenating the brand, teaming with high profile designer Karen Walker to launch a new product range and working with Longbeach to develop new innovations in fabrics and styling.

In 2005 the brand attracted massive media attention when it elected to move manufacturing operations from its Timaru-base to China.

Pearson, who claimed shareholders sold the brand for "private reasons", said the board and management team considered it crucial the brand be sold to a company that was able to continue re-positioning the brand.

Shareholders felt the time was right for a major company like Longbeach to come in and take Swanndri to "the next level", he said.

Longbeach currently operates across five countries, including Australia, and has been in business since 1978.