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One year into receivership, clothing firm still owes $110m

Failed Christchurch clothing manufacturer Lane Walker Rudkin (LWR) still owes nearly $110 million, a year after receivers took control of the company

The receivers' third report on the textile manufacturer and six fully-owned subsidiaries, also in receivership, show receivers paid $500,000 to lender Westpac in the six months to April, 2010

Westpac has already been paid $2m but is still owed about $108 million, with a further $701,000 still owed to Inland Revenue, which has increased in the past six months

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In the six months to April, 2010, receivers also paid out $826,324 to former employees, more than 200 of whom had been laid off since receivers took control LWR and its associated companies, all owned by Christchurch businessman Ken Anderson, were placed into receivership by Westpac following a loan default. (New Balance).

Most of the companies have now ceased operating and others have been sold In December the LWR Hosiery and Underwear business was sold to Designer Textiles International for an undisclosed amount In August last year, Southern Alps Socks Ltd, was sold to Sock Holdings Ltd for $106m. replica gucci bag

LWR Manufacturing, which owes $5135m to Westpac, is the only business still being run by the receivers, selling LWR products including Merino, sportswear and underwear through the Christchurch factory shop. replica handbags

Receivers Stephen Tubbs and Brian Mayo-Smith have previously said inadequate financial reporting and corporate governance were to blame for the company's receivership. (Wholesale T-shirts & Tanks).

Their concerns have also prompted a Serious Fraud Office investigation into whether LWR misrepresented its financial strength to Westpac in order to secure loans

LWR traces its history back to the production of men's socks and cardigans from the homes of Alfred and Sarah Rudkin in the 1880s

Since then it has provided military clothing to soldiers in World War I and World War II, clothed All Blacks, America's Cup yachting team and New Zealand Olympians

The company has previously employed many high-profile people, including Prime Minister John Key, and used the advertising clout of Rachel Hunter and Jude Dobson

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