China maker Waterford Wedgwood has succumbed to its massive debts and has finally gone into administration today.
It probably won’t come as a surprise to many that this company, which has debts of nearly £500million, is looking for a buyer, as it produces largely luxury items which most people will be avoiding right now. The group of companies in administration includes the Royal Doulton brand.
The company has been struggling with debt for some time, but with the added turmoil in the economy leaving people cutting back on spending on its traditional products, it was unlikely to make it through the recession unscathed, and has appointed Deloitte (they’re one company who won’t be suffering in this recession) as its administrator. It will continue to trade for the moment.
Waterford Wedgwood employs 1,900 people in the UK, many of whom are employed in the Stoke area, so this news is likely to be most feared in that city.
In other recession news, kids clothing store Adams has shut 111 of its stores, having called in the administrators last week. 160 of its stores will remain open.