The first quarter of 2013 has taken a heavy toll on the retail industry, with several high profile names forced into administration. However, things are beginning to look up, with both Jessops and HMV rescued from administration by buyers in the past couple of weeks.
Now traditional British manufacturing firm Axminster has received a similar reprieve after a deal was negotiated between administrators and a local business consortium. The carpet maker entered administration in March due to falling demand due to a combination of economic factors and changing interior design trends.
As of yet the amount paid by the consortium of local businesses, backed by chairman Stephen Boyd of leather firm Pittards, has not been revealed nor have the identities of any other members of the group. However, it has been confirmed that small business lender Centric Commercial Finance was instrumental in the rescue.
Joint administrator and representative for Duff & Phelps administrators, Benjamin Wiles, expressed his pleasure at the outcome of the administration process.
He said; “We are absolutely delighted to be able to announce that we have secured the future of Axminster Carpets, one of the best known British brands, following the successful sale of the business and assets of the company to Axminster Carpets (2013).
“It is a great result to secure the continuance for such an iconic name.
“I believe we have secured the best possible outcome for the local region and most importantly the staff.”
The 258 year old company, famous for the high quality carpets it produces, will now be able to retain its factory and outlet shop in the town of Axminster. A further commercial property in Buckfast will also remain operational as a result of the deal.
Unfortunately, while the 100 remaining employees will be relieved to learn their jobs are once more secure, the 300 workers made redundant at the start of the administration process will not be re-hired.
Former managing director Josh Dutfield will remain as the head of the company following in the footsteps of his grandfather Harry Dutfield. Mr Dutfield thanked all involved in the rescue deal at a press conference in Axminster.
He said; “We have been truly overwhelmed by the support received from the residents of the town of Axminster in our endeavours to secure the future of the business.”
The new Axminster Carpets (2013) company will now face an uphill struggle to return the business to profitability, given the fact that overall sector sales have dropped by 24 per cent in only 6 years.
Do you think the business will be able to survive thanks to the strength of its brand and heritage, or will its success depend entirely on current home decorating trends and fashions?
