Waterford Wedgwood collapses under mountain of debt

Waterford Wedgwood, which has been trading for 250 years, has gone into administration.

The renowned china and ceramics firm is millions of pounds in debt and entered administration after failing to find a buyer for the stricken company.

It is the latest in a series of companies which have collapsed as a result of the economic slowdown and adds to the growing number of people losing their jobs.

The company, whose brands include Royal Doulton, said that the majority of its 10 UK subsidiaries would be placed into administration today. The company has asked that its shares are suspended from trading on the Irish Stock Exchange.

Waterford Wedgwood has a workforce of almost 2,000 in the UK, approximately 600 of these work in manufacturing at Barlaston, Stoke-on-Trent. The Irish division has around 800 staff based in Waterford.

Outside the UK, there are almost 6,000 employees with the largest manufacturing centre being in Indonesia, where 1500 staff are involved in production.

Deloitte has been appointed as administrator to find buyers for different parts of the company.

David Sculley, chief executive, was ‘disappointed’ that some of its UK and Irish subsidiaries had been forced into administration or receivership. However, Mr Sculley said he was hopeful that a buyer could be sought for the Waterford, Ireland-based business, which is famous for its Wedgwood pottery, Royal Doulton and Waterford crystal.

The economic downturn has claimed many victims over the Christmas period after renowned retailing giants Woolworths and MFI went bust.

Just last week, French women’s clothing company Morgan was placed into administration.

Scottish-based fashion clothing retailer USC was placed into administration, while childrenswear retailer, Adams, applied for administration, also last week.

On Christmas Eve the music and games retailer, Zavvi, entered administration, followed by The Officer’s Club and Whittard of Chelsea.

Experts believe there could still be many more.

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