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Home / Business

LWR complaint referred to SFO

NZPA
17 Sep, 2009 01:00 AMQuick Read

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The receiver of clothing manufacturer Lane Walker Rudkin Industries has referred a matter to the Serious Fraud Office.

A spokesman for receiver BDO Spicers confirmed that a complaint had been made to the SFO. A spokeswoman for the SFO was unavailable to comment .

National Distribution Union general secretary Robert
Reid said his union had long been calling for an investigation into the failure of the iconic company.

"We have had strong feedback from the workers that they are wanting to see the whole of the financial shambles investigated, given the workers were one of the losers in the situation," he said.

He said about 60 people were still working for LWR companies in Christchurch, while more than 200 workers have been made redundant and some did not receive all of their entitlements.

LWR and seven subsidiaries were placed in receivership by Westpac on April 28.

The business is owned by Ken Anderson.

The company's former employees include Prime Minister John Key.

In July the first receivers report said $121 million was owned to creditors. The bulk of the money, $111.4m, was owed to Westpac.

- NZPA

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SFO lays 90 fraud charges in LWR collapse

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