Receiver at Southern Cross Forest Products in New Zealand announces sale of Thames sawmill and remanufacturing business to Profiles Woodproducts; official expects some redundancies as operations integrate, restructure

Wendy Lisney

LOS ANGELES , June 25, 2014 (Industry Intelligence Inc.) – KordaMentha, the receiver of Southern Cross Forest Products in New Zealand, has announced the sale of the failed forestry company's Thames sawmill and remanufacturing business in the North Island to Profiles Woodproducts Ltd., MSN.NZ reported on June 25.

KordaMentha was unable to sell the business as a going concern after it entered receivership in March, and said last month that it had been unable to find a buyer for the South Island operations, although there had been strong interest in the Thames operation. The company's Otago division was susequentlt closed with the loss of 100 jobs, and its assets are to be sold off separately.

Receiver Brendon Gibson said the sale of the Thames business to Profiles Woodproducts was likely to have an impact on staff as the two operations were integrated. He said that any restructuring was likely to result in redundancies for some of the workforce.

Gibson said no staff were being given notice at this time, but Korda Mentha wanted to ensure that they were advised as early as possible. He added: "We have undertaken to support community initiatives designed to get workers made redundant back into employment."

The primary source of this article is MSN.NZ, Auckland, New Zealand, on June 25, 2014. The original article can be viewed here.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.