Outdoor clothing and equipment retailer Kathmandu says the decision to move part of its manufacturing operation offshore was driven by customer demand.
Kathmandu acting chief executive Rod Harris said the decision to move some garment manufacturing offshore was the best move the company could make economically.
Whangarei manufacturer Glenside Clothing announced lastweek it would close later this month after major client Kathmandu decided to source wet-weather gear from China.
Twenty-eight machinists will lose their jobs.
Kathmandu said it had tried the option of manufacturing all its clothing in New Zealand.
Their customers demanded a high quality product at an affordable price, something they could only do if they manufactured their lines offshore, Mr Harris said.
He said it was unfortunate Glenside could not find any other contracts in the year since the company was told of Kathmandu's move.
Kathmandu sent its final large contracts to Glenside in July last year although it has continued to use the factory for smaller orders.
"When we manufactured all our clothing in New Zealand we employed less than 50 people. Now we employ more than 600, with 26 stores across Australasia," Mr Harris said.
Kathmandu uses a number of products made in New Zealand, including thermals, socks and some lines of Windstopper jackets.
