Login to UKBP
Commercial Property News
Waterford Wedgewood calls in receivers puttinfg 2700 jobs in jeopardy
Ireland's Waterford Wedgwood, whose luxury tableware was once a mainstay of wedding gift lists worldwide, has called in receivers and placed two of Britain's most venerable china makers into administration.
The heavily indebted maker of Waterford crystal, one of Ireland's most famous brands, also asked today that its shares be suspended from trading on the Irish Stock Exchange after failing to buy more time from creditors.
The owner of potter Wedgwood, founded 250 years ago by Josiah Wedgwood -- one of the fathers of the industrial revolution -- and whose tea and dinner services have graced royal tables ever since, had warned in December that it would not be able to pay interest to bondholders.
Politicians on both sides of the Irish Sea warned that the collapse of the company had severe implications for communities where china and glass have been manufactured for generations. The mayor of Waterford said it would be a "national disaster" for Ireland if production at the crystal factory ceased.
It is also a heavy blow to Sir Anthony O'Reilly, who chairs the company. The billionaire media tycoon and his brother-in-law Peter Goulandris have pumped about €400m (£375m) into Waterford Wedgwood in recent years, and own 60% of the company's shares.
Deloitte has taken control of Waterford Wedgwood's British and Irish operations. Joint administrator Angus Martin said that several potential buyers had already contacted Deloitte. "These are classic, high-quality, world-recognised brands," he said. "There is potentially a good business here."
Waterford Wedgwood has suffered from falling demand for its high-quality crystal, china and other tableware, and has recorded a loss for the last five years. It was forced to call in the administrators after its lenders, led by Bank of America, refused to postpone its interest payments for a fourth time. They had repeatedly given the company extra time to arrange new funding, and agreed to defer loan payments until 2 January.
A US private equity firm had been considering taking a controlling stake and providing $280m of new capital, and sources close to the company believe a deal could still be hammered out.
Shares in Waterford Wedgwood had already fallen to €0.001.
O'Reilly, who with Goulandris injected €60m into the company three months ago, thanked the company's suppliers, employees and customers and the British and Irish governments for their help. "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," he said.
Waterford Wedgwood employs some 1,900 people in the UK, many of whom work at its Barlaston pottery in Stoke-on-Trent, and a further 800 in Ireland. It runs 19 stores in the UK and 120 retail concessions within larger stores, and has almost 600 outlets worldwide.
Mark Meredith, the mayor of Stoke-on-Trent, said it was "a sad day" for the ceramics industry in the Potteries. He urged potential buyers to keep production in the area rather than move it overseas.
Thousands of Waterford Wedgwood jobs have already been lost in the UK and Ireland, as the company attempted to cut costs by closing some sites and moving production to eastern Europe and Indonesia. It has also tried to appeal to a younger audience with partnerships with celebrities, including chef Gordon Ramsay.
Josiah Wedgwood, known as "the father of English potters", founded the company in 1759. In 1986 it merged with Waterford, which was set up in 1783 by two brothers, William and George Penrose. O'Reilly has been credited with keeping Waterford Crystal alive in Ireland, and Waterford's mayor, Jack Walsh, warned that the country's tourism industry would suffer if it ceased to exist.
"Waterford Crystal is one of only a handful of iconic Irish brands and the gallery and the visitor centre at Kilbarry is among the most popular visitor attractions in the country," he said. "It is of major strategic importance that this company not be allowed slip in to oblivion."
Walsh called on the Irish state to help shore up the company and the brand. Ireland's main opposition party also called on the government to help find a buyer. "The preservation of the Waterford Crystal factory in the city is something the Ggovernment needs to take seriously as it has represented an integral part of Waterford and its people for generations," said John Deasy, Fine Gael TD for Waterford.
Unite, the trade union that represents workers at the Waterford plant, described the announcement as "devastating". Following After a meeting with the management at the plant this morning, Jimmy Kelly, Unite's regional general secretary for south-east Ireland, said Unite officials had been assured the company will be maintained as a going concern for as long as possible.
"The union will work closely with any prospective purchasers of the business so as to ensure we save the maximum number of quality jobs," he said.
"The workers who built the brand have always worked alongside management to find solutions that would protect the long-term future of the company. Unite will fully support them in liaising with local and national politicians to save the plant and the brand. It is too important to the workers and their families, to the city of Waterford and to the nation as a whole to let it disappear."
The heavily indebted maker of Waterford crystal, one of Ireland's most famous brands, also asked today that its shares be suspended from trading on the Irish Stock Exchange after failing to buy more time from creditors.
The owner of potter Wedgwood, founded 250 years ago by Josiah Wedgwood -- one of the fathers of the industrial revolution -- and whose tea and dinner services have graced royal tables ever since, had warned in December that it would not be able to pay interest to bondholders.
Politicians on both sides of the Irish Sea warned that the collapse of the company had severe implications for communities where china and glass have been manufactured for generations. The mayor of Waterford said it would be a "national disaster" for Ireland if production at the crystal factory ceased.
It is also a heavy blow to Sir Anthony O'Reilly, who chairs the company. The billionaire media tycoon and his brother-in-law Peter Goulandris have pumped about €400m (£375m) into Waterford Wedgwood in recent years, and own 60% of the company's shares.
Deloitte has taken control of Waterford Wedgwood's British and Irish operations. Joint administrator Angus Martin said that several potential buyers had already contacted Deloitte. "These are classic, high-quality, world-recognised brands," he said. "There is potentially a good business here."
Waterford Wedgwood has suffered from falling demand for its high-quality crystal, china and other tableware, and has recorded a loss for the last five years. It was forced to call in the administrators after its lenders, led by Bank of America, refused to postpone its interest payments for a fourth time. They had repeatedly given the company extra time to arrange new funding, and agreed to defer loan payments until 2 January.
A US private equity firm had been considering taking a controlling stake and providing $280m of new capital, and sources close to the company believe a deal could still be hammered out.
Shares in Waterford Wedgwood had already fallen to €0.001.
O'Reilly, who with Goulandris injected €60m into the company three months ago, thanked the company's suppliers, employees and customers and the British and Irish governments for their help. "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," he said.
Waterford Wedgwood employs some 1,900 people in the UK, many of whom work at its Barlaston pottery in Stoke-on-Trent, and a further 800 in Ireland. It runs 19 stores in the UK and 120 retail concessions within larger stores, and has almost 600 outlets worldwide.
Mark Meredith, the mayor of Stoke-on-Trent, said it was "a sad day" for the ceramics industry in the Potteries. He urged potential buyers to keep production in the area rather than move it overseas.
Thousands of Waterford Wedgwood jobs have already been lost in the UK and Ireland, as the company attempted to cut costs by closing some sites and moving production to eastern Europe and Indonesia. It has also tried to appeal to a younger audience with partnerships with celebrities, including chef Gordon Ramsay.
Josiah Wedgwood, known as "the father of English potters", founded the company in 1759. In 1986 it merged with Waterford, which was set up in 1783 by two brothers, William and George Penrose. O'Reilly has been credited with keeping Waterford Crystal alive in Ireland, and Waterford's mayor, Jack Walsh, warned that the country's tourism industry would suffer if it ceased to exist.
"Waterford Crystal is one of only a handful of iconic Irish brands and the gallery and the visitor centre at Kilbarry is among the most popular visitor attractions in the country," he said. "It is of major strategic importance that this company not be allowed slip in to oblivion."
Walsh called on the Irish state to help shore up the company and the brand. Ireland's main opposition party also called on the government to help find a buyer. "The preservation of the Waterford Crystal factory in the city is something the Ggovernment needs to take seriously as it has represented an integral part of Waterford and its people for generations," said John Deasy, Fine Gael TD for Waterford.
Unite, the trade union that represents workers at the Waterford plant, described the announcement as "devastating". Following After a meeting with the management at the plant this morning, Jimmy Kelly, Unite's regional general secretary for south-east Ireland, said Unite officials had been assured the company will be maintained as a going concern for as long as possible.
"The union will work closely with any prospective purchasers of the business so as to ensure we save the maximum number of quality jobs," he said.
"The workers who built the brand have always worked alongside management to find solutions that would protect the long-term future of the company. Unite will fully support them in liaising with local and national politicians to save the plant and the brand. It is too important to the workers and their families, to the city of Waterford and to the nation as a whole to let it disappear."
Mon, 5th Jan 2009