Around 2700 jobs are under threat at Waterford Wedgwood after the historic crystal and china maker became the latest big-name casualty of the economic turndown.
AROUND 2700 jobs are under threat at Waterford Wedgwood after the historic crystal and china maker became the latest big-name casualty of the economic turndown.
The luxury goods firm - best known for Wedgwood pottery, Royal Doulton and Waterford crystal - yesterday appointed Deloitte as administrators at its UK arm.
Receivers have also been brought in to parts of its Irish business. Waterford, which can trace its origins back 250 years, collapsed after talks over a potential sale to a US private equity firm failed and lenders walked away from the deal.
The company will continue to trade as discussions continue over the future of the business, while chief executive David Sculley said he was "optimistic" a buyer could be found.
However, the fate of UK and Irish staff remains unclear. In the UK, the firm employs around 1900 workers across retailing and manufacturing and has a large base in Stoke-on-Trent. The Irish arm has 800 staff in Waterford.
Deloitte said a restructuring of the firm had not been possible "in an acceptable timescale" as trading conditions worsened over recent weeks and months. Joint administrator Angus Martin added: "Waterford, Wedgwood and Royal Doulton are quintessentially classic brands that represent a high-quality product which is steeped in history.
"The administration team will be working closely with management, customers and suppliers during this time to ensure operations continue while a sale of the business is sought."
Non-executive chairman Sir Anthony O'Reilly said: "We are consoled only by the fact that everything that could have been done, by management and by the board to preserve the group, was done."
Sir Anthony, who also controls media firm Independent News & Media, owner of the Independent newspaper, added that the board and executives had received "remarkable support" in efforts to save the business from the Irish and UK governments and some Irish banks.
The firm is the latest high-profile name to collapse as the credit crunch continues to ravage British business. Woolworths, MFI, Zavvi, and Whittards are among the others that have recently gone bust.
The Waterford fall comes despite various attempts to revive the business since 2005.
As well as shedding thousands of jobs, the company embarked on a series of high-profile marketing initiatives and launched new products in a bid to increase its appeal, signing up stars such as chef Gordon Ramsay and designer Sir Terence Conran to launch more modern lines including Eternity China, which is able to stand up to use in microwaves and dishwashers.
But the firm suffered serious funding problems and was weighed down by the cost of restructuring. In the year to April, Waterford made a pre-tax loss of 241m (£230.7m), and carried net debt of 488m (£467.2m). The firm was also hit by the onset of the financial crisis in the autumn, with sales in October 19% down on the previous year.
Wedgwood was founded in 1759 in Stoke-on-Trent by Josiah Wedgwood, and began making bone china in the 19th century. Crystal maker Waterford was set up in 1783 by brothers William and George Penrose.
In 1986, Waterford acquired Wedgwood to form the present company, listing on the Stock Exchange and expanding overseas in the 1990s, before buying Royal Doulton in 2005.
Waterford employs a further 5000 staff in the US, Germany, Canada, Australia, Indonesia and Japan, who are not affected.
Meanwhile, the last remaining Woolworths stores will close their doors for the final time today. The closures bring to an end a massive clearance sale which saw even the stores' fixtures and fittings sold off at bargain prices. The collapse leaves 27,000 workers out of work.
The firm's 807 stores have been closing gradually throughout the final weeks of 2008. The final 200, including four Glasgow stores, will shut today.
Breaking point for two of the world's most luxurious brands
Between them, Waterford and Wedgwood, two of the world's oldest and most luxurious brands, have almost 500 years of history.
Wedgwood has been an international company for 250 years. It was founded in 1759 by Josiah Wedgwood, the "father of English potters", who created what are still three of Wedgwood's most famous and popular ranges - Queen's Ware (1762), Black Basalt (1768) and Jasper (1774).
In the nineteenth century, new machinery at the Wedgwood factory allowed the introduction of the first coloured earthenware bodies and, most importantly, the manufacture of bone china. Wedgwood bone china went on to grace the tables of illustrious homes throughout the world, including the dinner service President Theodore Roosevelt ordered for the White House.
During the 1930s, the fifth Josiah Wedgwood built a factory near Barlaston, just outside Stoke-on-Trent, where he also provided workers at the pottery with good-quality housing. Production has continued at the site ever since, though much of the work has been moved to sites in Indonesia and China.
Waterford was founded in the Irish city in 1783 by brothers George and William Penrose, helping make Wexford one of the busiest ports in the British Isles in the early 19th century. Despite the world-renowned quality of the glassware the company closed in the 1850s, reportedly due to excessive taxation of the product.
In 1947, Czech immigrant Charles Bacik established a glass works in the city, looking to tap into the reputation of the original brand. It was a success, producing lines such as Adare, Alana, Colleen, Kincora, Lismore, Maeve, Tramore. Waterford's chandeliers hang in such buildings as Windsor Castle and Westminster Abbey.
In 1986, the company acquired Wedgewood, and later Royal Doulton. However, by 2005 it was in serious trouble, announcing the closure of its Dungarvan factory, with the loss of 500 jobs. Operations were initially focused in a slimmed-down Waterford plant, but much of the production work was moved to eastern Europe last year, with the loss of even more Irish jobs.
