Dunedin-based Algie Clothing has bought Tamahine's plant, equipment and brands and will employ 22 of the original 50 staff who were given notice on April 17.
Algie Clothing managing director Ken Algie, with partner Donna van der Byl, said negotiations began less than three weeks ago.
The high skill level of existing staff was one of the strongest features of Tamahine, and the couple would also be buying relatively new knitwear equipment, he said.
"The skills here at Tamahine are recognised country-wide.
''The people, productivity and equipment are all especially good," Mr Algie said.
Algie Clothing has the recreational outdoor brands Peak XV and Shearwater, 10 Dunedin staff and six Christchurch staff.
It plans to continue manufacturing the Tamahine brands of Jackson Bay, Aotearoa, Katie Cullen, Ecology, MacKenzie Country, dot.com.nz and Cirrus.
Last month, Tamahine cited industry deregulation, Asian imports, high labour and material costs and the high New Zealand dollar for its demise.
Mr Algie started in the trade as a designer with Alliance about 35 years ago.
He spent 20 years with Norsewear before buying the Peak XV brand.
Algie Clothing was about six years old and during the past 18 months its turnover had expanded about 10-fold. Whereas Tamahine produced garments almost 100% for the New Zealand retail market, the new company would produce about 33% for New Zealand retail/tourism and would also import about 66% from overseas, with the capability to make up to 3000 garments a week at its Kaikorai Valley, Dunedin, factory.
Mr Algie said there was more flexibility in having a component for New Zealand-made clothing, with a shorter lead time to make orders and ability to produce smaller runs, especially for the tourism market.
Tamahine director Ross Gamble said of the original 50 staff laid off, only about 10 were still to find new employment and he hoped all would have jobs by the July 4 closure date.
Mr Algie and Mr Gamble said the new business model would not have the stock to hold annual factory clearance sales - which has attracted up to 50,000 customers.
Algie Clothing will have only about a third, or 600sq m, of Tamahine's factory space to work with at Kaikorai Valley.
Wickliffe printers, which itself shed 48 of 70 production staff from its Clyde St premises in March last year, is quitting its Dunedin City Council-owned premises to move into the remaining two-thirds of the Tamahine site at the end of July.
