Receivers have arrived at the Feltex factories across the country.

The ANZ pulled the plug on a deal to save the company early this morning put forward by Sleepyhead owners Graeme and Craig Turner, deciding it was not prepared to keep funding the carpetmaker until a rescue package could be voted on by shareholders next month. The Turners are holding a press conference on the issue shortly.

Receiver Colin Nichol says he will be dealing with parties that have expressed interested in acquiring the company. He says Feltex has strong household brand names, an excellent customer base and outstanding employees. He is confident it can be sold as an ongoing concern, but says continued support from workers, unions, suppliers and customers is vital. The receivers have applied for trading of Feltex shares to be suspended.

Engineers Union boss Andrew Little says the receivers have told him that workers will continue on the same terms and conditions. He says that is good news for the company's 1400 employees. Mr Little is advising union members at the company's plants to gather up their personal possessions so that they do not get caught up in the receivership process. He says workers should sit tight.

Dozens of National Distribution Union members have gathered outside the ANZ Bank in Auckland's Otahuhu. National secretary Laila Harre says they are protesting about the bank's decision to appoint receivers to Feltex. She says about 50 Progressive Enterprises workers who have just won their settlement are at the bank. She says it is their way of showing solidarity and acknowledging the support the Feltex staff gave them during their dispute with Progressive.

Feltex has sites in New Zealand, Australia and the United States.