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Jobs fear as Axminster Carpets faces collapse Jobs fear as Axminster Carpets faces collapse
(7 months later)
Axminster Carpets, the 250-year-old Devon company that made the coronation carpet for George VI in 1937, is on the brink of collapse.Axminster Carpets, the 250-year-old Devon company that made the coronation carpet for George VI in 1937, is on the brink of collapse.
About 400 workers could lose their jobs as the company, awarded a royal warrant last year, becomes the latest victim of Britain's crumbling manufacturing industry.About 400 workers could lose their jobs as the company, awarded a royal warrant last year, becomes the latest victim of Britain's crumbling manufacturing industry.
The family-run business, which made its first carpets in 1755 for King George III and covered floors at Chatsworth House and Brighton Pavilion, said rescue options were being explored but it was preparing to call in administrators.The family-run business, which made its first carpets in 1755 for King George III and covered floors at Chatsworth House and Brighton Pavilion, said rescue options were being explored but it was preparing to call in administrators.
Director Joshua Dutfield, whose grandfather Harry Dutfield resurrected the business in 1937, said: "Trading has been difficult and the management has been working with key suppliers, creditors and the lenders in an attempt to resolve financial difficulties. We continue to be committed to working to achieve the best possible outcome for all concerned and most importantly the staff and suppliers."Director Joshua Dutfield, whose grandfather Harry Dutfield resurrected the business in 1937, said: "Trading has been difficult and the management has been working with key suppliers, creditors and the lenders in an attempt to resolve financial difficulties. We continue to be committed to working to achieve the best possible outcome for all concerned and most importantly the staff and suppliers."
In recent years Axminster has struggled as homeowners have turned away from carpets to wooden and laminate flooring and luxury hotels have opted for cheaper foreign carpets.In recent years Axminster has struggled as homeowners have turned away from carpets to wooden and laminate flooring and luxury hotels have opted for cheaper foreign carpets.
Last year the company shut its Irish business, Curragh Carpets, with the loss of 60 jobs. Rival carpetmaker Brintons went into administration in 2011 – but was saved – and Scotland's oldest carpetmaker Stoddard collapsed in 2005.Last year the company shut its Irish business, Curragh Carpets, with the loss of 60 jobs. Rival carpetmaker Brintons went into administration in 2011 – but was saved – and Scotland's oldest carpetmaker Stoddard collapsed in 2005.
According to the most recent accounts filed with Companies House in 2010, Axminster had debts of about £12m, with a £7m pension deficit.According to the most recent accounts filed with Companies House in 2010, Axminster had debts of about £12m, with a £7m pension deficit.
The luxury carpetmaker was started by Thomas Whitty and subsequently run by four generations of the family before dying out in 1835 after a fire destroyed the factory. But 100 years later Harry Dutfield heard about its rich heritage from a vicar in the Devon town and resurrected the business. The carpets then became renowned again for their qualityThe luxury carpetmaker was started by Thomas Whitty and subsequently run by four generations of the family before dying out in 1835 after a fire destroyed the factory. But 100 years later Harry Dutfield heard about its rich heritage from a vicar in the Devon town and resurrected the business. The carpets then became renowned again for their quality
Dutfield expanded and opened factories as far afield as New Zealand, introducing new techniques and materials. In the 1970s he met an antipodean professor who was developing a heavy fleeced strain of sheep that became known as Drysdales. Dutfield introduced the first flock to Britain in 1976.Dutfield expanded and opened factories as far afield as New Zealand, introducing new techniques and materials. In the 1970s he met an antipodean professor who was developing a heavy fleeced strain of sheep that became known as Drysdales. Dutfield introduced the first flock to Britain in 1976.
However, with cheaper imports eating into Axminster's market share, the business suffered and was forced to lay off 10% of its workforce in 2008.However, with cheaper imports eating into Axminster's market share, the business suffered and was forced to lay off 10% of its workforce in 2008.
Administrators from Duff & Phelps are expected to be appointed within the next few days.Administrators from Duff & Phelps are expected to be appointed within the next few days.
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