The announcement that Bruce Woollen Mill has been placed in receivership is disappointing but one the Co-operative hopes will lead to a positive outcome for the company and the industry if a pathway to a successful future can be identified.
As part of their industry-good focus, Primary Wool Co-operative made a secured investment in Bruce Woollen Mill in early 2014. “We were concerned the New Zealand wool industry risked losing a key part of its infrastructure. So we got involved in a company we believed had great potential, to try and preserve another avenue of onshore wool processing” said Bay de Lautour, Chairman of Primary Wool Co-operative.
Later in September 2014, the Co-operative negotiated a major shareholding in Wool Equities to enable it to facilitate the restructure of Wool Equities’ subsidiaries, including Bruce Woollen Mill, which could have established a vertically integrated business. An overwhelming shareholder vote passed the necessary resolutions but Wool Equities directors failed to act on them.
“We’re obviously disappointed that despite our best efforts, Bruce Woollen Mill made the decision to appoint a receiver but hope that through the receivership process, the company will be able to trade on and ultimately sell the business so it continues” say de Lautour.
He notes that growing awareness of wool is raising demand and prices for wool which is exactly why the Co-operative invested in Bruce Woollen Mill. “It would be a shame not to be able to capitalise on that” he says.
About Primary Wool Co-operative Limited (PWC)
Primary Wool Co-operative Limited (PWC) was formed by a group of farmers in 1974 to increase the returns for wool growers. Over the ensuing decades, membership has grown to nearly 1,300 and significant investment and involvement has been made in the NZ wool industry. The proven grower-owned and controlled co-operative structure remains paramount.
PWC has a 50% shareholding in Carrfields Primary Wool (CP Wool) and two PWC Directors sit on the CP Wool Board to actively represent the interests of Co-operative members.
Co-operative membership delivers significant benefits to wool growers. Members not only get a reduction on charges but also increased prices for quality wool and a share in the profits of CP Wool.
To learn more about Primary Wool Co-operative Ltd please contact:
Bay de Lautour
Chairman, Primary Wool Co-operative Ltd
m:027 492 8908
or visit www.primarywool.co.nz