Bruce Woollen Mill restructuring

Bruce Woollen Mill has entered into what management is calling a six to eight-week period of restructuring after negotiating a new equity partner.

Managing director John Stevens offered no further comment, or details about the nature of the restructuring, but he called it good news for the mill and said an announcement would be made ''shortly''.

The mill seemed to have a bright future only two and a-half years ago when it was saved from closure.

Last year, it acquired more than $500,000 worth of ''near new'' machinery as the new owners continued to invest in the historic 1897 mill.

Mr Stevens told the Otago Daily Times in April 2013 the new machinery would allow the mill to offer a wider range of products and develop new industries. He also said he hoped to boost staff numbers as the company expanded.

But the company has been plagued by financial issues, has faced two applications for liquidation in the past two months and staff have reported irregular payment of wages.

In November 2011, the Milton mill seemed set to close when QualitYarns issued redundancy notices to its 28 staff, but in April 2012 Christchurch-based Wool Equities Ltd, part of a consortium of New Zealand businesses, bought the plant, keeping it open.

Despite the plans to add staff as production increased, the mill employs 23 people at present.

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