Three major textile companies have announced they will either be closing or implementing redundancies and short weeks as a result of the current downturn.. The biggest losers are employees of clothing company Pacific Brands which is pulling out of manufacturing and will close its factories in Palmerston North and Christchurch. Unless another company takes over, 89 workers at the Palmerston North and Christchurch plants will be made redundant.

Pacific Brands says it is putting both plants up for sale and hopes some jobs can be retained if either factory finds a buyer. But the National Distribution Union says that is unlikely, and the 51 employees in Palmerston North and 38 in Christchurch are likely to be made redundant from July to September 2009. The union says the announcement is another blow to New Zealand's textile industry, already struggling to compete with cheap labour internationally.