The famous Royal carpet maker Axminster Carpets has been saved after investors bought it out of administration.
The Devon company collapsed in February 2020 with the loss of 80 jobs. But a group of 海角视频 private investors, industry leaders and the Dutfield family, which restarted the business in 1937, has rescued it.
The business, which had built up debts of nearly £8million, is now well-funded and debt free, the new owners said.
Robert Day, who is leading the private investors, said: “The business has never been in a better position to again become a significant player in the sector.
“There is a plan to implement an employee ownership model so that the local people who have worked so hard over some difficult years can feel part of the resurgence of this proud company.”
Joint administrator Benjamin Wiles, of Duff & Phelps, said: “We are absolutely delighted to be able to announce today 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.
“The swift conclusion of this process has enabled Duff & Phelps to secure the future of the business. This deal will provide a stable financial platform, ensuring its long-term viability.”
Working with Axminster Carpets’ new owners, Ulster Carpets has already invested in the Axfelt underlay plant in Axminster and Wilton Flooring secured the lease of the Factory Outlet Shop in February.
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These combined initiatives will ensure employment opportunities for the skilled workforce on site and allow the carpet business to focus on its core point of difference in the luxury markets.
Axminster Carpets has a long tradition of making the world’s finest carpets for the most discerning clients and is a holder of a Royal Warrant.
It as founded in 1755 by Thomas Whitty, the creator of the now famous Axminster Weave and Harry Dutfield restarted the business in 1937.
Famous customers include King George III and Queen Charlotte, who also visited the factory, and Queen Elizabeth II.
Axminster carpet is in Buckingham Palace, Chatsworth House, Brighton Pavilion, The Houses of Parliament, Windsor Castle, Osborne House, The United States House of Representatives and many other famous properties across the world.
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Many of the current employees are second and third generation family members and the business, which sources natural British materials, is important to the town’s community.
The new owners say Axminster Carpets is well placed for a successful and sustainable future. When it went into administration in February it was for the second time in seven years.
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Tim Jones, chairman of the South West Business Council, said: "It's excellent news that one of our most longstanding manufacturing companies with a global reputation has been rescued."The new company is undertaking to resume production and we have high hopes that will ensure job losses are fully recovered and production will resume quickly."The impact of the local economy is important, and what it says about the South West and one of our iconic businesses."
The firm’s recent troubles are understood to have been prompted by weak consumer confidence, delays to corporate orders and a delay in the awarding of several new rail franchises which form an important slice of revenue.
Axminster Carpets had been owned since 2016 by H Dawson Wool, a Bradford-based supplier to the wool carpet manufacturing sector. The company has been run by managing director Jonathan Young for 18 months.
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Last September, Mr Young notified employees about job losses and offered voluntary redundancy.
Duff & Phelps also handled Axminster's previous stint in administration in 2013. It was subsequently bought out of insolvency by businessman Stephen Boyd and quickly returned to break-even status.
However, since it last changed hands, it has been loss-making, reporting negative earnings before interest, tax, depreciation and amortisation of £0.55million in the year to February 28, 2018.
Axminster Carpets' other corporate clients have included JD Wetherspoon, the pub operator known for its vast and distinctively patterned carpets.