ANNOUNCEMENT:LUXURY GOODS firm Waterford Wedgwood was put into receivership yesterday and trading in its shares on the Irish Stock Exchange was suspended after the company failed to find a buyer amid the global financial crisis.
David Carson, a partner in Deloitte Ireland, was appointed receiver of the Irish operations of Waterford Wedgwood which employs some 800 people at its crystal making factory at Kilbarry Industrial Estate in Waterford city.
A number of the group's companies in the UK, including Waterford Wedgwood UK Plc, Wedgwood Ltd, Josiah Wedgwood Sons Ltd, Royal Doulton Ltd, Stuart and Sons Ltd and Statum Ltd were also placed in administration.
Mr Carson confirmed that Waterford Wedgwood will continue to trade.
He said he would continue with efforts to sell the company as a going concern.
Mr Carson pointed out that Waterford, Wedgwood and Royal Doulton are "classic brands steeped in history".
"My team will work closely with the management and employees together with customers and suppliers to ensure operations continue effectively and efficiently while a sale of the business is sought," said Mr Carson in a statement.
Waterford Wedgwood had earlier confirmed a receiver had been appointed after the expiration and non-renewal of the most recent forbearance by its bankers, despite the efforts of the company's directors to recapitalise the company and more recently to find a buyer.
Extensive efforts had been made to restructure the businesses, but as trading conditions deteriorated it became apparent that a restructuring of the businesses could not be achieved in an acceptable timescale, said the company in a statement.
Waterford Wedgwood group CEO David Sculley expressed disappointment that some of the subsidiaries had to go into receivership and administration, but said they remained optimistic that ongoing discussions will result in a buyer being found for the businesses.
Non-executive chairman of Waterford Wedgwood plc Sir Anthony O'Reilly, who stepped down yesterday, commended both the board, the executives, the Irish and UK governments as well as the company's suppliers, customers and employees for all their support and efforts.
The board had acted tirelessly in its efforts to resolve the company's issues as a going concern, said Sir Anthony, adding that the principal shareholders had invested in support of this business for almost 20 years. "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," said Sir Anthony in a statement issued on behalf of the company.
Union leaders representing the workforce at the Kilbarry plant in Waterford met Mr Carson yesterday morning and revealed that they planned to meet him again later this week for a further briefing.
Unite regional industrial organiser Seán Kelly said the mood among employees was one of shock and dismay as, having see the company survive three periods of forbearance, workers had begun to believe that a buyer would be found and their jobs would be saved. "It's come as a real bolt out of the blue to the workers - it's a real horror story for them," said Mr Kelly.
He said Mr Carson assured them at their meeting that he would continue to allow the company to trade while actively seeking a buyer. Mr Carson had also promised to meet them before the end of the week to answer questions they had regarding the company's debts, assets and potential purchasers, said Mr Kelly, adding the union would work closely with any prospective purchaser to try and save jobs.
Last October, Waterford Crystal told workers about its plans to lay off 280 people at its plant in Kilbarry in the city, effectively ending large-scale manufacturing at the plant following an earlier announcement in 2007 to seek 490 redundancies at the factory in a restructuring move.
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