Time runs out for O'Donoghue

Analysis: Redmond O'Donoghue's tenure at Waterford Wedgwood was indelibly marked by the terror attacks that shook New York in 2001.

At the time, the company's shares were on a high and sales were strong. Since then, life in the luxury giftware market has been one long struggle. Continued weakness in Japan, a key market for the company's Wedgwood brands, and a series of troubles in the vital US market exacerbated by the precipitous decline in the dollar has undermined repeated efforts to reinvigorate the company. Once listed among the blue-chip stocks on the Irish Stock Exchange, Waterford Wedgwood no longer registers on the institutional investor radar - a fact reflected in the muted response to yesterday's announcement from analysts.

Even investor patience is wearing thin. A series of profit warnings, the suspension of dividend payments and repeated calls on shareholder cash through rights issues have dented the faith of even the staunchest investors.

That was illustrated in the most recent attempt by the company to raise €100 million to fund its latest restructuring proposal. Lacklustre support saw the underwriters of the issue - company chairman Sir Anthony O'Reilly and his brother-in-law Peter Goulandris - gain control of more than 50 per cent of the company.

To many, it seems only a matter of time before they out the remaining shareholders.

It's all a long way from 1996 when Mr O'Donoghue succeeded Dr Paddy Galvin as chief executive of a company resurgent after a near collapse in the early 1990s - the first Waterford born head of the group.

Initially, it seemed the company had put those troubles behind it for good. Sales and profits rose dramatically and the company acquired an interest in German glassmaker Rosenthal.

It also took steps to address the growing reluctance of a younger people to replicate the loyalty of their parents to the group's premium crystal product, launching the John Rocha range.

By the end of 1997, the company was again forced to shed jobs, this time in its British Wedgwood operations as it battled with the spectre of oversupply and high production costs.

Wedgwood continued to be a drain on company resources in subsequent years.

The purchase and subsequent strong performance of US cookware brand All-Clad helped the group weather the slide in the fortunes of its ceramics business.

More importantly for Waterford Wedgwood's future, it brought into the group Peter Cameron, the man now charged with restoring the fortunes on Waterford Wedgwood.

The attacks of September 11th were a crippling blow. By November, the company was describing the economic climate as the "worst ever".

Since then, Waterford Wedgwood has been struggling with a series of financial restructuring and false dawns as oversupply, changing consumer tastes and adverse currency movements undermined Mr O'Donoghue's best efforts.

Earlier this year, he said: "This is a two-to-three year recovery story and it is only people who are interested in that who should stay with this business."

It would appear time finally ran out for Mr O'Donoghue.