Waterford Wedgwood PLC Collapses, UK Operations Placed in Administration, Receiver Appointed For Irish Businesses

Another mighty company has collapsed on the first day after the holiday season. Waterford Wedgwood PLC said that its U.K. operations are being placed in administration and a receiver has been appointed for its Irish businesses after the Irish china and glassware group failed to secure new financing, becoming the latest victim of the downturn in consumer spending.

Angus Martin, Neville Kahn, Nick Dargan and Dominic Wong of Deloitte LLP were appointed joint administrators to Waterford Wedgwood U.K. and certain U.K. subsidiaries. Waterford Wedgwood Chief Executive David Sculley said he is “disappointed,” but remains “optimistic that ongoing discussions will result in a buyer being found for the businesses.”

Waterford Wedgwood has been struggling for some time as consumers have shunned its expensive products for cheaper alternatives made in Asia. Its four brands are Waterford Crystal, Wedgwood, Rosenthal and Royal Doulton.

Waterford Wedgwood said Monday it requested that its stock units be suspended from trading on the Irish Stock Exchange with immediate effect, following the appointment of David Carson of Deloitte as receiver to the group. The administration process in Britain is a form of bankruptcy protection. Administrators are appointed to salvage as much of the company as possible for the benefit of its creditors, which may involve trying to keep the business as a going concern or breaking it up and selling it off. Receivership in Ireland also may lead to efforts to keep the business going or breaking it up. Source: Wall Street Journal

The affected companies include Waterford Wedgwood U.K., Wedgwood, Josiah Wedgwood & Sons, Josiah Wedgwood & Sons (Exports), Waterford Wedgwood Retail, Royal Doulton, Royal Doulton (U.K.), Royal Doulton Overseas Holdings, Stuart & Sons and Statum.

I remember wanting Waterford pieces as among our wedding gifts. The pieces were very expensive and I suspect that many including myself, would rather opt for something cheaper. After all, you don’t pull out your Waterford pieces for everyday use and if you don’t entertain a lot, what’s the point of having them? There may be a sale on Waterford Wedgwood pieces coming to a store near you!

Filed under: Bush Administration, Collapses, Receivership, Waterford Wedgwood