Axminster Carpets to go into administration

Wednesday, 20 February 2013

Town mayor laments plight of company

AXMINSTER Carpets has called in the administrators with some 400 jobs at risk as the company looks to put together a rescue package.

Amid great speculation among factory workers, a statement issued by Richard Merrin, of public relations agency Spreckley Partners Ltd, said:

Axminster Carpets Limited (“the company”) continues to trade while the company explore 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 & Phelps as joint administrators.

The company’s director, Joshua Dutfield, commented: “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.”

Trade union Community, which represents a number of workers at Axminster Carpets, reacted by launching a Save Axminster Carpets campaign.

Campaign details are still being worked on but Community officer Lorraine Gaskell said: "We've launched a Save Axminster Carpets campaign which will also aim to get the local communities involved in the fight to secure the business."

Lorraine travelled to Axminster today and added: "Today's statement has caused great concern amongst the workforce.

"We will be working closely with the company and the administrator in the days ahead to secure the jobs of all those who work there and to find a solution to the current difficulties.

"Axminster is a renowned national and international brand name."

Leading East Devon Councillor Andrew Moulding, Deputy Leader of East Devon District Council and also Mayor of Axminster, has reacted to the news.

He said: “This is extremely sad and troubling news 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. EDDC wants to see a thriving economy in East Devon and we will do anything we can do 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”.

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