Two major Kiwi companies on the rocks

Article – BusinessDesk

May 31 (BusinessDesk) – The prolonged recession appears to have done for two of New Zealand’s most well-established manufacturing businesses – global Christchurch-based busmaker DesignLine and long-standing Taranaki baker Yarrow’s Ltd.

Two major Kiwi companies on the rocks

By Pattrick Smellie

May 31 (BusinessDesk) – The prolonged recession appears to have done for two of New Zealand’s most well-established manufacturing businesses – global Christchurch-based busmaker DesignLine and long-standing Taranaki baker Yarrow’s Ltd.

Fairfax Media is reporting that DesignLine has been placed in liquidation following an application heard in the Christchurch High Court today, while Yarrow’s has been placed in the hands of receivers BDO.

DesignLine, which also had substantial manufacturing operations in North Carolina and is owned by American investors, had been struggling since losing a major export order in the wake of the global financial crisis. The company was reportedly seeking an equity injection from American investors.

The company’s founder, Charles Turton of Ashburton, remains its third largest shareholder and was the leading light behind the energy efficient hybrid bus operating systems that had seen DesignLine start to carve out a global market since investment by wealthy North Carolinian Buster Glosson and some 40 other Americans in 2006.

The company had already staved off two other liquidation applications and senior management, and had invested heavily in new plant in both Rolleston, Christchurch and Charlotte, North Carolina.

Yarrow’s has operated from its headquarters in Manaia, south Taranaki, since 1923. Chief operating officer Russell Guckert referred all calls to the receiver, Brian Mayo-Smith of accountants BDO.

(BusinessDesk)

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