Renowned British pottery manufacturer Denby has confirmed it intends to appoint administrators after struggling with rising costs and challenging market conditions.
The Derbyshire-based company, which was founded in 1809, said it had filed a notice of intention to appoint administrators as a precaution while it continues to search for new investment.
Denby was previously rescued from collapse in 2009 when it was acquired by investment firm Hilco Capital. However, the company said recent pressures including reduced consumer demand, rising employment costs and soaring energy prices had placed significant financial strain on the business.
In a statement, the Denby Group said it had been unable so far to secure a strategic investment partner aligned with the long-term vision of its historic British brands.
“While Denby has explored a range of options, it has not yet been able to secure a strategic investment partner aligned with the long-term vision and values of its historic British brands much loved by their large global fan base,” the company said.
It added that the notice of intention to appoint administrators provides short-term protection while it continues to explore funding and restructuring options, as well as potential partnerships either for the Denby Group as a whole or for individual brands.
Despite the move, Denby confirmed it will continue trading during the process. Its subsidiary Burgess & Leigh, along with the company’s international operations, will also continue to operate as normal.
The company also said: “While Denby has explored a range of options, it has not yet been able to secure a strategic investment partner aligned with the long-term vision and values of its historic British brands much loved by their large global fan base. The search for a suitable partner will continue whether for the Denby Group as a whole or for the brands individually.
“However, as a precautionary measure, and to provide a period of stability while these options continue to be assessed, the Denby group of companies in the UK has filed a notice of intention to appoint administrators. This step offers short-term protection to allow the business to explore potential funding and restructuring solutions in an orderly manner.
“Denby and Burgess & Leigh are continuing to trade while all options for the future of the companies are being explored. International subsidiaries such as Denby Korea and Denby USA continue to trade as normal at this time.
“The priorities remain supporting employees, customers, suppliers, and retail partners while working with advisers to determine the best possible outcome for all stakeholders.”
Responding to the announcement, GMB union organiser Craig Thomson described the situation as a “worrying time” for employees.
“Denby pottery is a British icon, producing some of the world’s finest ceramics,” he said. “This is a worrying time for workers across Denby. We are working closely with our members and representatives on site.”
Mr Thomson also called for government support for the ceramics sector, particularly in relation to high energy costs.
“Britain’s ceramics industry is the envy of the world. We must now see urgent government action on energy prices to support the sector through this time of turbulence,” he said.
Amber Valley MP Linsey Farnsworth said she had already held an urgent meeting with the company and was working with both Denby and the GMB union.
“Denby remains a world-class, viable manufacturer that continues to trade and meet demand,” she said. “I am acting as a direct link between the company and the Department for Business and Trade to ensure every possible avenue is explored to secure a positive outcome for Amber Valley.”
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