Wellington, New Zealand, July 31, 2006--Workers at Feltex plants are expecting to learn this week whether the company has a future, according to Stuff.co.nz.
After months of uncertainty and a tough time on the sharemarket, the carpetmaker is in last-ditch talks with two potential investors.
If a white knight does not appear the prospects for Feltex look bleak, with the ANZ Bank, which is owed the bulk of the company's more than $120 million debt, likely to be left in charge of the company's fate.
Feltex, which has its head office in Melbourne, has about 890 New Zealand staff at manufacturing plants in Christchurch, Lower Hutt, Dannevirke, Feilding, Foxton and Kakariki, near Marton.
In Christchurch, the Upper Riccarton woven carpets factory opened its doors in 1947 and employs 170 staff.
The plant has been through two rounds of restructuring and redundancies in recent years and the payroll has almost halved from 320 just two years ago.
Tony Sparks, the National Distribution Union's head site delegate, said the workers wanted to know what the future held.
Not one worker had left during the company's latest round of problems and most were long servers, with some between 35 and 40 years of service, he said.
"I'm quite proud of the people out here--they're not hanging their heads--there's always a lot of laughs."
Management kept workers up to date, but had a duty to the sharemarket investors as well, Sparks said.
"If an investor doesn't come on board I don't think it looks too good."
If the bank pulled the plug and the company went into receivership or liquidation he doubted there would be much left over to pay out workers.
The plant is as busy as it has been for at least four years, with full order books and work in the pipeline till Christmas. It is working 24 hours during the week and there is overtime at the weekends.
The plant makes top quality woven carpets--most modern carpets are tufted--and is one of only three of its type in Australasia. Woven carpets are more expensive than synthetic tufted carpets, but are in demand for large commercial projects such as hotels.
Sparks, a charge hand, has worked at the plant since leaving school at 16, and has clocked up 21 years.
"I'd like to know one way or another. At the end of the day I've got to think about what's best for my family."
Feltex has had a string of financial setbacks since floating on the sharemarket at $1.70 a share in June 2004.
After floating, the company issued a series of profit warnings and in recent months has breached its banking agreements, forcing it to look for fresh financing to stay in business.
Last week, its shares slumped 37 per cent to just over 13 cents after talks with investors failed to reach a conclusion. The talks are continuing.
Australian rival Godfrey Hirst has been looking at Feltex and there are also reports of interest from China.
Sam Magill, Feltex's chief executive at the time of the float, was removed from the board in December.
Sparks said a number of workers had invested in the 170c share float, which added insult to injury.
