Proposed buyer of NZ carpet maker Bremworth named in US environmental investigation
Thursday, 7 May 2026
A huge US carpet and floor company in the throes of buying New Zealand’s Bremworth to add to its ownership of Godfrey Hirst, Feltex Carpets and Floorscape among others, has been named in a journalistic investigation into environmental contamination in the American South.
The Atlanta Journal-Constitution, Frontline (PBS), and the Associated Press have released an investigative documentary called Contaminated: The Carpet Industry’s Toxic Legacy, which has revealed that for decades so-called “forever chemicals” (PFAS, or Per- and polyfluoroalkyl substances) used to make carpets stain-resistant were flushed into rivers that provide drinking water for hundreds of thousands of people in and around Dalton, Georgia.
Residents in the area, the so-called “Carpet Capital of the World”, are suing major manufacturers like Mohawk Industries and Shaw Industries, alleging these companies knew about the health risks for decades but continued using the chemicals.
Many of the residents have had blood tests showing PFAS levels higher than national health guidelines considered safe in their bodies, and liver and thyroid conditions that have been linked to PFAS, including types of cancer. The chemicals have also been found in soil, and crops halted in affected soil as a result.
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Shaw and Mohawk are the US’ largest carpet and flooring companies. They blame the contamination on their chemical suppliers, which they said for years hid the dangers of PFAS in their products.
They have further argued there are no enforceable limits on the chemicals being used, which is true in Georgia, unlike other states that have invested tens of millions of dollars in cleanups and sued polluters to recoup costs.
Neither Shaw nor Mohawk nor the chemical suppliers 3M and DuPont replied to requests for comment for the US investigation.
The Post has approached Mohawk-owned Godfrey Hirst in New Zealand for comment.
Carpets that have been processed using specific PFAS like PFOS (perfluorooctane sulfonates) have been effectively banned in New Zealand since 2011. Godfrey Hirst Australia and New Zealand introduced a “Declare Red List Free” rating system to its carpets in 2020 to assure customers on products that contained none of these chemicals.
Sale process
Mohawk may end up owning NZX-listed carpet play Bremworth, after the latter entered into an agreement with Floorscape, and Floorscape’s parent Mohawk Industries, to be acquired in October last year.
Mohawk would pay 75cps for each Bremworth share, valuing the company about $66 million, but shareholders would also likely receive a capital return of Bremworth’s own excess cash.
Bremworth shares are currently trading at 72cps.
The Commerce Commission, which is considering the deal, has issued several statements of unresolved issues with the deal ‒ and has thus far maintained a view that the merger would not substantially lessen competition in the New Zealand carpet market.
It has said not only would combining the two leading domestic manufacturers create a supplier with overwhelming market share, but there would also be reduced choice and higher prices; an impact on the wool industry in that the merger would eliminate New Zealand’s only two manufacturers with full domestic wool-spinning and fibre-processing capability; and importers would not be able to expand significantly enough to compete with the merged entity.
The commission has extended its decision date on the deal to May 29.