Wedgwood faces closure
Waterford Wedgwood board unable to find solution
Monday, 05, Jan 2009 09:26
Waterford Wedgwood is set to go into administration with its shares suspended on the Irish Stock Exchange.
Deloitte has been named as the administrator for the Waterford Wedgwood UK and its subsidiaries.
The ceramics and glass specialist has been in recapitalisation discussions, but has unable to find a solution before a deadline set from its lenders.
In December, the firm stated meet repayments on some of its debts, but lenders did not renew the forbearance period on the loans, leaving Waterford Wedgwood with little option but to call in administrators.
However, the Waterford Wedgwood board is hopeful the firm will be able to continue if a buyer is found.
David Sculley, group chief executive, said: “I am disappointed that certain of the group’s UK and Irish subsidiaries have had to go into administration and receivership, but we remain optimistic that ongoing discussions will result in a buyer being found for the businesses."
Sir Anthony O’Reilly, non-executive chairman of Waterford Wedgwood, added: "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."
Waterford Wedgwood - which was formed in 1986 after the merger of Waterford Glass Group and Wedgwood – employs some 8,000 people at sites in the UK, Ireland and Germany.
Wedgwood dates back to 1759.
In November, Pottery marker Royal Worcester & Spode also called in administrators.