November 27 2014 Latest news:
Wednesday, February 20, 2013
Some 400 jobs at risk as company looks to put together a rescue package
Around 400 workers at Axminster Carpets face an uncertain future as the company today confirmed its intention to call in administrators.
A statement issued by Richard Merrin, of Spreckley Partners Ltd, said: “Axminster Carpets Limited continues to trade while the company explores all potential rescue/restructuring options.
“The Company’s board of directors confirm that a notice of intention to appoint administrators has been filed with respect to the company. The notice was filed in order to provide the company and its creditors with a moratorium period during which the various rescue options being explored can continue.
“The notice of intention to appoint administrators nominates Benjamin Wiles, Geoff Bouchier and David Whitehouse of Duff and Phelps as Joint Administrators.”
The company’s managing director, Joshua Dutfield, said: “Trading has been difficult and the management has been working with key suppliers, creditors and the lenders in an attempt to resolve the company’s 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.”
Axminster Mayor Andrew Moulding has described news of the company’s financial difficulties as “extremely sad and troubling from so many standpoints.
“As an Axminster councillor I am terribly disappointed that a company that has taken the name of our historic town into thousands of homes and businesses all over the world should have succombed to the economic ills that beset so many companies during these difficult global trading conditions.
“As Mayor, I am aware of the effect this will have on Axminster as a town and a community, and the impact on the individuals and families who have been such loyal and long-standing employees of this family business. I also feel for the Dutfield family, who have been such good employers and are victims of a global recession.
“I am desperately sorry for the hard-working employees of the company, who now find their employment under threat.”
Mr Moulding, deputy leader of East Devon District Council added that they wanted to see a thriving economy in East Devon and would do anything they could to assist the company in these difficult times.
“Of course, we should not lose heart. The company is intending to appoint administrators and that means there is good reason to hope that it can be saved and continue trading, albeit in a different format, into the future. The next few days and weeks will be crucial and whilst I sympathise with the current plight of the employees and directors, I remain optimistic that something can be salvaged to ensure that this iconic name, so synonymous with quality and resilience, continues for many years to come.”