Waterford could shed 500 jobs if US fund bid succeeds

UP TO 500 jobs at Waterford Wedgwood’s Irish operation could be lost if the US fund that is bidding for the company succeeds in buying it.

The luxury crystal and tableware group’s banks placed it in receivership over two weeks ago. It estimated to be in the red to the tune of €336 million.

New York-based private equity fund KPS Capital subsequently signalled its interest in buying the business, sparking hopes that its Irish manufacturing base in Waterford, and the jobs of its 800 workers, could be saved.

However, it is understood that KPS is only prepared to guarantee that it will hire about 300 of those 800 workers, although it has said it may require more staff.

In addition, it will only commit to taking on the entire Waterford premises for one year and is not willing to take on any liabilities with the business.

The fund is largely interested in buying the group’s luxury brands and its intellectual property – for example, copyright over product designs and manufacturing processes.

KPS is in talks with receiver David Carson of Deloitte and last week met two Cabinet members, Tánaiste Mary Coughlan and Minister for Sport Martin Cullen, in whose constituency the Waterford operation is headquartered.

None of the three have commented or made any statement on the talks that they have had with the New York fund.

KPS specialises in buying manufacturing businesses that are insolvent or are carrying excessive debts. In the US, it has invested in sectors as diverse as motor parts manufacturing and paper milling.

Mr Carson pledged to make every effort to keep Waterford Wedgwood going and to sell the business as a going concern when he took over.

The crystal manufacturing operation in Waterford cut back to a three-day week on Monday, while the Wedgwood business in Britain was forced to lay off staff earlier this month.

Representatives of Unite, the union which represents workers at the Waterford plant, have met with both the receiver and KPS.

The union issued a statement at the weekend saying it was working to secure the plant’s future.

Businessman Sir Anthony O’Reilly and his brother-in-law Peter Goulandris own 52 per cent of Waterford Wedgwood and have invested €400 million in the group. Sir Anthony and a number of board members have resigned since Mr Carson took over.

Its brands include Waterford Crystal, Wedgwood and Royal Doulton china, and Rosenthal porcelain.