One of the unions representing Claymark Group workers says the receivership announcement is a "bolt from the blue" but a Rotorua businessman says the city shouldn't be alarmed.
The announcement the forestry company had been tipped into receivership was made on Wednesday and Grant Graham, Brendon Gibson and Neal Jacksonof financial advisory firm KordaMentha were appointed as receivers to the companies included in the group.
The business employs 510 workers across six manufacturing sites in Bay of Plenty, Thames and Auckland, producing radiata pine wood products for export. Of those workers, 230 are employed in Rotorua, where the head office is, and 160 in Katikati.
According to the receivers, the company has an annual turnover of about $160 million.
Rotorua Chamber of Commerce chief executive Bryce Heard wanted to make clear the company was in receivership, not liquidation.
Heard said there needed to be patience while the process was worked through.
"It's unfortunate this has happened but I wouldn't be too alarmed about jobs, it's only receivership.
"There's a little while to go before we push any panic buttons."
The E Tū union said uncertainty hung over the future of Claymark Group though it hoped a buyer would be found.
The union had 20 members at the Claymark processing site on Geddes Rd in Rotorua.
E Tū team leader Raymond Wheeler said news of the receivership came as "a bolt from the blue but considering the news, the mood of the members remains positive and hopeful a buyer can be secured".
He said the union had spoken to the receiver and for now the company continued to trade as normal.
"That is good news given this time of year," Wheeler said.
"There is a sale and purchase agreement with New Zealand Future Forest Products which is open until December 31, so they are obviously still negotiating.
"But because Claymark couldn't meet its debt repayment schedule, the receiver's been called in and will work with the parties to broker a deal.
"Meanwhile, everything is business as usual. The guys are being paid their wages and leave entitlements over the Christmas break will be paid in the usual way."
He said there was optimism that if the deal fell over, there would be alternative buyers.
"It's now in the hands of the receivers. We'll have more certainty about where this goes next once we know what happens on December 31."
First Union also represented some Claymark workers.
A former staff member spoke on the condition of anonymity. He worked at Claymark's head office in Rotorua.
He said Claymark was a busy place to work and appeared to be successful so the receivership was a shock. He had spoken to some workers in the business.
"People are just hoping this is open to negotiation with prospective buyers."
The former employee said the receivership was "not good for anybody involved in the industry".
"It creates uncertainty with banks we deal with. It's not good for anyone. We're wishing everyone luck and hope receivers will be able to get a deal with buyers pretty soon."
The Rotorua Daily Post approached Tompkins Wake partner Tom Arieli, who had acted on behalf of Claymark Industries as recently as September, and was a director of the company from November 2016 to August last year.
He declined to comment.
On September 5 Tompkins Wake announced it was pleased to have advised Claymark in the attempted sale to NZ Future Forest Products.
It described Claymark as "one of New Zealand's most successful wood exporters and a global leader in high-quality value-added wood products".
The receivers were approached for comment but did not respond. However a statement at the time of the announcement, said Claymark Group came under "increasing working capital pressure to stabilise the business and fund future growth" as a result of NZ Future Forest Products not yet settling.
"The Group has been unable to secure additional funding and, as a result, the board of Claymark has had to take the unfortunate step of requesting its senior debt provider to appoint receivers."
