Wellington, April 29 NZPA - Prime Minister John Key had his first job with textile manufacturer Lane Walker Rudkin and expressed sadness today about it being placed in receivership, but said there was little the Government could do.

Shocked workers were told about 4pm yesterday that the company had placed in receivership by its bankers Westpac.

The National Distribution Union said the acrimonious breakup of the marriage of owners Ken and Patricia Anderson last year led to difficulties in union negotiations, The Press newspaper reported.

Mr Anderson bought LWR in 2001 and subsidiary Pod in 2007.

LWR employs about 470 people at textile, hosiery, underwear and garment factories in Christchurch; garment manufacturers in Greytown and Pahiatua; a sock factory in Timaru; and a sports apparel factory in Brisbane.

"It was my first job when I left university really," Mr Key said. "It's very disappointing but at this point I guess it's now in the hands of the receiver to see whether those jobs can be saved."

It would be fantastic if a way could be found to protect "the livelihoods of 470 families", he said. "It's a lot of people in Christchurch, they've been a very long-term employer down there," he said, noting the other areas that would also be affected.

He said he did not think it likely there was anything the Government could do.

The LWR operations were unprofitable and the company had incurred a substantial increase in bank debt, receivers Brian Mayo-Smith and Stephen Tubbs, partners in BDO Spicers, said yesterday.

Economic Development Minister Gerry Brownlee told Parliament that there had been no contact with the company before the announcement and he had first heard about it from the media.

The future of the company was dependent on whatever commercial arrangements the receiver could come up with, he said.

Pod comprises of fabric maker Designer Textiles International, clothing designer and manufacturer Michele Ann, and Mollers Homewares, all in Auckland.

"Information available up to this point would appear to indicate that the Pod operations are profitable and cash positive," Mr Tubbs said.

"These operations will be ring-fenced under a dedicated board and management structure reporting to the receivers."

The receivers said today that Pod and its subsidaries are under their control but are not in receivership.

Workers were told that redundancy payouts would be capped at $16,500 under the receivership, said Maxine Gay, secretary of the National Distribution Union's clothing and textiles sector.

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