24 Sep 2014

Christchurch Yarns bid extended

6:57 am on 24 September 2014

The farmer bid to buy the Christchurch Yarns wool spinning business out of receivership has been extended by a month.

NZ Yarn Ltd, set up by the Primary Wool Co-Operative, was seeking to raise $3 million by last Friday.

NZ Yarn chairman Bay de Lautour said a number of farmers have committed their support and provided indications of prospective investment.

However, says the short timeframe, along with delays in many farmers receiving documentation through the mail and being busy on the farm, means an extension is needed to get documents and cheques returned.

The deadline has been extended to 18 October.

Christchurch Yarns makes yarn for wool carpets and was put into receivership in March this year, but has continued processing on a reduced scale to fill orders.

Mr de Lautour said it is important for wool growers to keep the plant operating in New Zealand, as it is the last independently owned wool spinning plant in the southern hemisphere that makes woollen carpet yarn.