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Mr Cadogan said yesterday it was ''frustrating'' to hear from a source other than receiver KordaMentha the news that the company's four Otago sites would be closed.
''I have found the receivers really hard to deal with and, once again, this has come as a complete surprise to us,'' he said yesterday.
It was ''terrible news'' for the workers and ''another hard blow'' for the district.
''Our thoughts go out to the workers and their families,'' he said.
''This is a situation that has been threatening for some time, but the reality isn't nice.''
After the company announced 79 redundancies last month, it was hoped the receiver would work more closely with the affected councils, Mr Cadogan said.
''After the first redundancies, we showed we had the ability to assist,'' he said.
The Clutha District Council organised a ''stock-take'' of available Clutha jobs and a meeting between employers and those made redundant last month.
The council would run a similar meeting for the 35 remaining workers in the area.
Last month's meeting had been a ''huge success'' and it was hoped similar numbers could find jobs in the area following the closure of the mills.