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During the later part of the 19th, through the early stages of the 20th centuries; Manchester in the United Kingdom was famed for it's (now derilict) textile industry. New Zealand, being a relatively new country at the time was completely reliant on imports for all it's textiles & linens. Manchester Linen became much sought after for bedding, due to it's superior quality over alternative sources. (As today, Egyptian Cotton is considered the superior article.) So consumers would seek it out by name. Over time, where once they would have asked for 'Manchester Linen' - this became shortened, to simply 'Manchester'.

Hence Kiwi's now calling bedding Manchester.

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17y ago
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Q: Why do kiwi's call bedding Manchester?
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